- Policy aimed at extending facilitation and incentives to promote the growth of small and medium enterprises
The federal government approved on Wednesday a comprehensive Small and Medium Enterprises (SME) policy to enhance the country's industrial and manufacturing base.
Sharing details of the policy in a news conference, Minister for Industries and Production Khusro Bakhtiar, while sitting alongside Minister for Information and Broadcasting Fawad Chaudhry, informed that the policy is aimed at extending facilitation and incentives to promote the growth of small and medium enterprises.
Under the policy, the requirement of NOC for the establishment or expansion of certain industries has been abolished.
The minister said that under the SME policy, 'Aasan Finance Scheme' is being introduced to ensure access of capital to the industries.
Under the scheme, a loan of up to Rs10 million will be provided without any collateral for the establishment of thirty thousand new businesses. He said a land of 4,200 acres has been allocated which will be provided to the entrepreneurs in easy installments.
Under the policy, productive businesses will be given 57-83% special exemptions in taxes. He said special exemptions in taxes will be given to women entrepreneurs in order to ensure greater participation in businesses.
The Minister for Industries and Production said that an amount of Rs30 billion has been allocated for Small and Medium Enterprises Authority for a period of five years.
He said a proper mechanism has also been established for implementation of the SME policy.
Earlier, an official told Business Recorder that SME policy envisages increasing the economic contribution of SME with sustained SME growth of 9% per annum in the next four to five years and services sector of the SMEs to 10% per annum by 2025 from existing growth of 4.43% in 2020-21.
The policy also targets increasing average SME sector employment to 5% per annum from 2.43% during the last three years besides increasing SME sector exports 10% per annum by 2025.
SME credit will be increased from Rs437.57 billion to Rs800 billion while the number of SMEs would go up from 172,1393 to 700,000 by fiscal year 2025.