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Existing tax laws not in conformity with the SME sector: Zahid Hussain

Islamabad: (Parliament Times) Speakers at a seminar held at Bahria University Karachi Campus here on Friday said that government should establish a separate fund to cater for the capital requirements of the SME sector.

The seminar titled, “SME – A Source of Socio Economic Development: Prospects and Challenges” was attended and addressed by President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain. The speakers observed that many countries have ensured development by promoting SME sector but here situation is different as this sector is only getting seven percent share in all the loans issued to the private sector, he said.

Mian Zahid Hussain while addressing the seminar said that existing tax laws are compatible for large industries but they are not in conformity with the SME sector. Therefore, he said, a separate independent revenue authority based on different laws is needed to boost the SME sector which covers 96 percent of all the businesses in Pakistan.
He observed that SME is a labour intensive sector which can absorb many unemployed as around two million youth is entering in the job market every year with fewer opportunities. He also called for establishing a separate fund of one trillion rupees with flexible rules for the development of this sector under the direct supervision of the central bank. “All efforts for the promotion of exports have failed therefore government should not try the counterproductive departments and establish ten export promotion companies with the consultation of the private sector to boost exports”, he demanded.

He also called for establishment of IT centres in every major city to impart training regarding business development and teach application development to bright ones.

Head of Department Management Sciences Prof. Dr. Mustaghis Ur Rehman, Secretary General Employers Federation of Pakistan Mr. Faseeh Ul Kareem Siddiqui and Mr. Ali Sabeeh and Prof. Seema Zia and others also addressed at the seminar.

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