Coordinator to Federal Tax Ombudsman Meher Kashif Younis called for promoting Small and Medium Enterprises (SMEs) which contribute significantly to economic growth and the Gross Domestic Product (GDP) of any country.
Addressing a seminar on “Role of SMEs in Economic Growth” arranged by Gold Ring Economic Forum, a strategic think-tank, here Sunday.
Meher Kashif said that all developed countries like Japan, Korea, China and Taiwan became super economic powers through their SMEs. Industrial revolution could change the fate of Pakistan, therefore, supporting and nurturing the growth of SMEs was crucial for sustainable and inclusive economic development and jobs creation, he said and asserted, “The cumulative impact on GDP could be substantial, as they collectively account for a significant portion of economic activity.” The FTO Coordinator said that SMEs growth and success translate into increased production, consumption and investment, thus driving the overall economic expansion, he added.
He urged the government to promote SMEs industrialisation and excess to finance must be ensured on merit at very low markup of 3 to 4 percent through one window operation.
He said SMEs played a crucial role in regional development, particularly in rural and underdeveloped areas, besides promoting local entrepreneurship, alleviating the poverty, and narrowing the urban-rural income gap.
The SMEs also contribute to balanced regional development by creating jobs, attracting investments, and stimulating economic activities in areas which might otherwise remain neglected.
Meher Kashif Younis said, SMEs ensured 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 allowed them to adapt quickly and explore alternative markets or business models. “These are essential for innovation, economic growth, regional development, supplier networks, social inclusivity, and economic stability,” he maintained.
About social and inclusive development, he said, the SMEs contribute to social and inclusive development by empowering individuals and marginalized groups besides providing opportunities for entrepreneurship, women’ economic participation, and the inclusion of minority communities.
SMEs enable economic empowerment and contribute to reducing social inequalities, he added.
The SMEs sector was often at the forefront of innovation and entrepreneurship, and had the flexibility and agility to absorb market changes quickly and experiment with new ideas for productsor services, and these innovative efforts contribute to overall economic growth, technologicaladvancement and competitiveness, he concluded.—APP
