LAHORE: Coordinator to Federal Tax Ombudsman (FTO) Meher Kashif Younis Sunday stressed the urgent need for promotion of small and medium enterprises that significantly contribute to economic growth and the gross domestic product (GDP) as well as play a vital role in the economy of any country.
Speaking at a seminar on “Role of SMEs In Economic Growth “ here on Sunday under the aegis of Gold Ring Economic Forum, a strategic think tank, he said all developed countries like Japan, Korea, China & Taiwan became super economic powers through their SMEs. Industrial revolution can change the fate of Pakistan. He said supporting and nurturing the growth of SMEs is crucial for sustainable and inclusive economic development in addition to job creation.
He said the cumulative impact on GDP can be substantial, as they collectively account for a significant portion of economic activity. Their growth and success translate into increased production, consumption, and investment, driving the overall economic expansion, he added.
He urged the government pay full attention to promote SMEs industrialization and excess to finance must be ensured on merit at very low rate of 3/4% without any hassles through one window operation.
He said SMEs play a crucial role in regional development, particularly in rural and underdeveloped areas besides promoting local entrepreneurship, help alleviate poverty, and reduce the urban-rural income gap. He said SMEs also contribute to balanced regional development by creating jobs, attracting investments, and stimulating economic activities in areas that may otherwise remain neglected.
Meher Kashif Younis said SMEs also contribute to economic stability by diversifying the economy and reducing dependence on a few large enterprises or industries and they tend to be more resilient during economic downturns, as their size and flexible structure allow them to adapt quickly and explore alternative markets or business models.
He said these are essential for innovation, economic growth, regional development, supplier networks, social inclusivity, and economic stability.
About social and Inclusive development he said these contribute to social and inclusive development by empowering individuals and marginalized groups besides providing opportunities for entrepreneurship, women’s economic participation, and the inclusion of minority communities. SMEs enable economic empowerment and contribute to reducing social inequalities, he added.
Regarding innovation and entrepreneurship, he said these are often at the forefront of innovation and entrepreneurship. They have the flexibility and agility to adapt to market changes quickly, experiment with new ideas, and introduce innovative products or services, he added. These innovative efforts contribute to economic growth, technological advancement, and competitiveness, he concluded.
Copyright Business Recorder, 2023