Islamabad: A strategic consulting session was held recently, gathering more than 40 manufacturers of SME. The session was jointly organized by the International Labor Organization (ILO) and the Smeda Development Authority (SMEDA) within the framework of the Ministry of Industries and Production.
Under the leadership of the main members of the Technical Working Group (Twg), including Mr. Mashoud Khan and Mr. Mouomadhad Ali, the event facilitated an explicit exchange of challenges, opportunities and recommendations aimed at helping informal companies in Pakistan and workers to move to the official economy. This transformation is seen as necessary to build a more fair, more flexible and competitive industrial scene.
Why the formal nature is important
Mrs. Nadia Jahangir Seth, Politics and Planning at General Motors (SMEDA), and Mr. Shiariar Taher, Head of Foreign Relations, emphasized the transformative power to give the official nature. “Supporting institutions in their transition is informal is vital to comprehensive and sustainable economic growth.” Official institutions benefit from access to financing, government support and international markets better, allowing them to grow sustainable while creating decent jobs and protecting workers’ rights.
Main meals from discussion
The most prominent Mashood Khan, Two member and automotive representative, urgently getting to know the studies of the state of successful small and medium -sized companies. He suggested that local roles models from the auto parts manufacture sector can help direct the transfer to other informal companies.
The main suggestions and recommendations listed:
- The central government portal for payments
Participants recommended the development of a unified federal/boycott portal where all government departments can issue a valid challans. This would reduce manual treatment, reduce corruption, and reduce the burden of tax compliance with small and medium companies. - Banking and financial support for small and medium companies
There was a strong consensus on the need for banking products for small and medium -sized companies, including:
- Low assembly loans in the long term
- Interest rates do not exceed 2 %
- Debt and restructuring from the State Bank in Pakistan because small and medium -sized companies are unable to meet the previous obligations
He also suggested that the State Bank Bank remove the excessive recovery payment plans for the affected small and medium -sized companies.
- Low assembly loans in the long term
- Government purchases for small and medium -sized companies
To ensure fair competition and sustainability, the participants urged the government to reserve a fixed share of the general purchases of small and medium -sized companies, and thus merge them directly into national value chains. - Incentives
Instead of imposing sanctions on informal companies, the attendees recommended incentives to small and medium -sized companies that bring their suppliers to the official sector. The approach should focus on encouragement and capacity building, not punishment. - Small and medium -sized companies regions
There was a common vision to develop dedicated SME industrial areas, equipped with common auxiliary tools, infrastructure, and easy -to -stand upright factory units. These areas will also facilitate technical partnerships and B2B cooperation. - Establishing a council for small and medium -sized companies
A strong proposal was made to form the Council of Independent Small and Medium Companies, consisting of representatives from various sectors, to express collective concerns, proposal reforms, and monitor progress towards formal character.
ILO perspective
Mr. Naim Ansari, coordinator of the national project for the official SME project in the International Labor Organization, again stressed the importance of continuous dialogue and cooperation between the main stakeholders, including workers. He emphasized the need for frequent brainstorming sessions with stakeholders with small and medium -sized companies and skilled workers to improve the national road map and progress in it.
“Our goal is to enhance productivity, improve working conditions, enhance social dialogue, and make small and medium -sized companies more competitive and better compatible. The formal character is not an option but rather a necessity for the long -term economic growth of Pakistan.”
This session highlighted the urgent need for comprehensive curricula that depend on work to give the official character to small and medium -sized companies in Pakistan. Through the right policies, cooperation and institutional support, Pakistan can harness the full potential of its informal sector – which leads to a growth engine that creates jobs, enhances exports, and enhances the national economy.
