Pakistan Business News: Premier Imran Khan in a meeting instructed the authorities to facilitate small and medium enterprises (SMEs) via structural changes. The meeting discussed the current economic conditions and showed concern on the growth of construction and agriculture sectors whilst protecting the labour rights in accordance with the laws.
As the new Pakistani government has not been able to stabilise rupee rate and has faced several economic setbacks due to the prevailing war-like situation with India and other factors, the economic team wants to show reforms in SME policy.
The construction sector has spurred in the previous decade and the current government has decided to grant it ‘industry’ status. Economic progress is ‘said to be’ the foremost progress of the state and actions are being taken to improve it. Prime Minister Imran Khan frequently shares the government updates on the economic conditions of Pakistan via tweets.
The govt's consistent focus on reducing our external imbalances by reducing imports & increasing exports & remittances are bearing fruit. Current account deficit reduced by more than $6 bn last yr & July this yr deficit is 73% or $1.5 bn lower than July 2018 – a great achievement
— Imran Khan (@ImranKhanPTI) August 21, 2019
The SMEs contribute to over 90% of the trade share in Pakistan and the alarming rate of business shutdown was threatened if new reforms were not introduced. To curb this the government has decided to: fix the tax rate for SMEs, enhance the loan limit to the small and medium businesses to 1m and introduce low scrutiny for the businesses.
According to an economic survey reported by dawn news, major sectors including industry, agriculture and services not only underachieved the targets, but also fell from the last fiscal year. Moreover, 6 sectors also showed a negative growth which paints a sad picture of Pakistan economy in 2019.
Source: Dawn News
The new policies to be introduced for SMEs are hoped to bring the growth of many sectors to meet the targets. Pakistan economy badly needs a push towards the right direction to be able to achieve overcome the deficit earned due to negligence of the current government.