ICSTSI is one of the pioneer chambers for the SME Sector in Pakistan representing the interest of local traders, markets and small industries of Islamabad. The session was attended by Malik Zaheer Ahmed, President, Mr. Muddassar Fiyaz Chaudhry, Vice President, Muhammad Abu Bakr, Executive Committee Member & Chairman SMEs, and Muhammad Iqbal Qureshi, Secretary General along with sixteen (16) other ICSTSI’s members. The Commission’s team briefed them about the main provisions of competition law.

The participants candidly discussed the problems faced by the small and medium businesses, particularly the small traders. They complained of the complicated and multiple taxation system, and exorbitant rents in the federal territory

The session at APFMA was attended by Mr. Ali Ansar Ghumman, former Chairman APFMA & President Gujrat Chamber of Commerce & Industry, Muhammad Afzal, former Chairman APFMA, Mr. Moeen Zafar Chaudhry from Pak Wood Furnishers, Mr. Sufyan Haider, Secretary General APFMA along with around 20 other members of the association.

The participants highlighted that the 34% spike in the industrial inflation post-Covid-19 and the imposition of a heavy regulatory duty of 25% on raw copper, posed a big challenge for the furniture manufacturers. Another concern raised was the establishment of the industrial estate for the businesses of Gujrat for which the land was provided in Sargodha thus making it an unviable option to move the machinery and manpower to a distant city.

The representatives of the Gujrat fan industry present on the occasion complained about the uncompetitive tenders floated by the government departments. They alleged that instead of defining density, thickness or quality, the tenders specified a certain brand thus restricting competition to a specific brand and excluding the other market players. Moreover, they also complained of excessive pricing by the freight operators.

The participants also suggested introducing the idea of wood farming on the national level to meet the high demand for furniture both at the local and international levels

The session was attended by Mr. Adnan Jalil, president, Mr. Rehman Gul, Senior Vice President, Mr. Hassan Daud Butt, Chief Executive Officer, Khyber Pakhtunkhwa Board of Investment and Trade (KP-BOIT), women entrepreneurs, the representative of SMEDA, TDAP and members of the local business community in large number

The participants discussed the problems faced by SMEs in Peshawar and sought the intervention of the relevant government departments to resolve their issues. The participants lauded the role of SMEDA, BOI and other government agencies in supporting and actively working with the local business community. They expressed their concern over the low ratio of SME financing by the commercial banks, which is stagnating the growth of SMEs. Stringent requirements of banks have made it almost impossible for SMEs to avail loans from banks. Resultantly, they are left with no option but to get private loans from individual lenders with heavy markups.

The session at LCCI was attended by Mr. Sajjad Afzal Sheikh, Executive Committee Member & Convener SME Committee, Mr. Rehmatullah Javed, SME National Expert FPCCI, Mr. Abdul Rafeh Iqbal, Business Manager Intercan Pvt ltd along with twenty (20) members of the Chamber.

They informed that LCCI provides an opportunity for its members to involve in Chamber’s activities and meet government officials and leading businessmen both Local and International. LCCI always remains in consultation with government departments on various issues related to the business community, which provides opportunities for members to share their views and concerns. LCCI’s one window smart services are the benchmark of excellence, where the member can avail exclusive services about several provincial and federal authorities.

The representative of the pharmaceutical sector highlighted that the cost of production has increased due to higher regulatory duties. Manufacturers are forced to use local raw material at higher prices making it equally expensive for the export market. Likewise, the imposition of 17% GST is another factor impeding the growth of small businesses. They also suggested the mapping of region-wise production capacity across Pakistan to address the real-time challenges faced by SMEs.

The session at PCMA Lahore was attended by Mr. Iqbal Kidway, Secretary General PCMA, Mr. Azhar Mian, CEO MZ International, Mr. Abdul Qayyum, CEO Chromatex, Mr. Mubeen Ahmed, CSR Engro Polymers, and ten (10) other senior members. The participants informed that chemicals are an integral part of almost all industries.

Highlighting the importance of chemicals, PCMA representatives informed that on daily basis, consumers buy thousands of chemical products ranging from household detergents to automotive paint, fertilizers to crop saving pesticides and pain-relieving medicines to life-saving drugs and vaccines. PCMA endeavours to achieve competitiveness through imports substitution and implementing best practices.

The discussions revealed that the market size of India’s chemical industry stands at $178 billion whereas Pakistan’s market size is just $12 billion. The industry is heavily dependent on imports as the local industry meets only 7% of total demand. The sector has the export potential of around $5-10 billion, if paid due attention by the government. In the absence of any incubators and facilitators, government support is needed in the field of Research & Development. Moreover, the participants stressed the need for documentation of the retail sector.

Since 1940s, Gujrat is famous for making electrical fans and the industry has excelled in the genre to cater the national and international demand. According to official data, the Gujrat district houses 362 electrical fan making units, 137 pottery making units and 784 furniture factories.

The session at the Association was attended by Mr. Fahad Rafiq, Chairman PEFMA, Mr. Zahid Mehmood, Vice President, Gulam Mohyuddin, CEO Khursheed Fans and eleven (11) other members of the Association.

It was highlighted that small enterprises are in majority with more than 300 players. The sector lacks a costing mechanism as it heavily depends on imported raw material, which fluctuates rapidly and inconsistently. The sector has huge potential to generate employment but it requires attention from the key stakeholders

Certain competition concerns were also highlighted during the discussions. The participants complained of predatory pricing, often by the distributors, which has allegedly resulted in the shrinking of the industry from 500 to around 200 players at present. As there is a lack of a costing mechanism, there is a possibility of collusion among vendors to fix and raise prices. Deceptive marketing practices are also harming the industry. It was suggested that industry-wise input targets may be set to increase the SME’s contribution to the national economy.

APBUMA is a leading association having an active presence in the country with its zonal offices in Faisalabad, Lahore, Karachi and head office in Multan. The session at APBUMA was attended by Khwaja Muhammad Younus, Chairman APBUMA, Syed Muhammad Fazil, Vice Chairman, Syed Muhammad Aasim, former Chairman along with thirty six (36) other members of the association.

The participants brought into notice that in monetary value, cotton production has largely decreased from $12 billion to $5 billion mainly due to multi-crop farming, low-quality seeds, and a tilt toward sugar cane cultivation. On the contrary, exports have increased by $25 billion due to shifting of international orders from India and China. It was stressed that the biggest challenge is to retain those businesses in Pakistan. Therefore, it was urged that government should take concrete steps in this regard.

It was also highlighted that the State Bank of Pakistan (SBP) frequently held online awareness sessions about financing facilities. However, private banks lend according to their own policies and risk appetite irrespective of credit schemes offered by SBP. Furthermore, R&D for improving seed quality is essentially required to enhance per acre yield. This could lead to an increased income for farmers as well.

MCCI enjoys the singular distinction of being the premier Chamber of Southern Punjab representing economic activities due to its location in the industrial and commercial centre of southern Punjab. The session at MCCI was attended by Mr. Iftikhar Ali Shah, Senior Vice President of MCCI, Khawaja M. Usman, former President and twenty (20) other members of the chamber.

The discussion highlighted that the agriculture industry of the region needs to be promoted as it severely lacks access to state-of-the-art machinery. For instance, the cotton ginning industry and flour mills are still working with machinery with only 30- 40% efficiency.

The prominent regions of South Punjab contributing to the national economy are Multan, Khanewal, Rahim Yar Khan, D.I.Khan, Muzaffargarh. Therefore, a cluster-based approach may be adopted by the government to incentivize their substantive share in the economy.

The participants of the session complained of an acute shortage of cold storage facilities in the region. Trade facilitation for the potential exporters is required to encourage national exports. There is a sheer lack of implementation of SBP’s financing schemes for SMEs. Besides R&D issues, complex taxation, and unnecessary duties on SMEs were also highlighted during the discussion.

The session at RYKCCI was attended by Chaudhry Azam, Vice President, Malik Ejaz, Managing Director Swift Sales Distributor, Mr. Waqas Akram, Managing Director, Waqas Fahd Flour Mills, Mr. Ghulam Abbas Cheema, Managing Director Ittefaq Rice Mills, along with fifteen (15) other members of the chamber.

While addressing the seminar, Chaudhry Azam said that Rahim Yar Khan is one of the largest producers of cotton, wheat, sugarcane and rice, etc. One-third of the mango production in Pakistan is also produced in the district. There are over 100 Cotton Ginning Factories, more than 80 Flour Mills, around 100 Oil Mills, 5 Sugar Mills, 3 Textile Units, Power Loom Factories, 2 Fertilizer Factories, above 150 Seed Companies, more than 70 Pesticide Firms operating in the region. The chamber is actively working with institutions like SMEDA, SBP and FBR. He complained that the agriculture sector is facing numerous issues regarding increased prices of fertilizers, tractors and other associated machinery.

The participants also emphasized the need to improve Pakistan’s taxation regime and put an end to under-invoicing. Businesses are reluctant to register themselves and are afraid to be part of the tax net of the country. They further added that the small businesses generally lack proper and complete documents vice versa banks are hesitant to lend credit facilities to them.

The session at FCCI was attended by Engr. Hafiz Ihtasham Javed, President, Ch. Talat Mehmood, Senior Vice President, Rana Ayub Aslam Mani, Vice President, Dr. Habib Aslam Gaba, Chairman FCCI Standing Committee, Muhammad Nazir, Secretary General, along with eighteen (18) other members of the chamber.

The Chamber’s President informed that they are striving to become a voice of the business community with a strong pledge to enhance the economic prosperity and quality of life in Faisalabad. The Chamber offers various facilitation to its members ranging from SMEDA, SBP, and Punjab Board of Investment and Trade (PBIT) to visa facilitation, E-Police khidmat and several others.

During the interactive session, the participants highlighted the increasing power and gas tariffs as one of the major hurdles faced by the business community. They also complained about the redundant tax refund system, which is particularly discouraging the small businesses. Representatives of the textile exporters, while sharing their tax-related concerns, suggested introducing a fixed taxation regime to provide relief to small businesses.

It was further stressed that Faisalabad being the second largest industrial hub of Pakistan can achieve further economic growth, specifically in the industrial sector, by utilizing the opportunities available under CPEC. The central location of the city on the eastern route of CPEC along with its 4500 acres industrial estate located on the main M-3 motorway provides the ideal conditions for the setting up of new state-of-the-art industries through cooperation with Chinese entrepreneurs.

The session at FCSTI was attended by Mian Zafar Iqbal, CEO, Ch. Shafeeq, President FCSTI & the Vice President of All Pakistan Flour Mills Association, Ch. Javed Sadiq, Chairman, All Pakistan Cotton Power Looms Association, Muhammad Yousaf, President Faisalabad Gray Cloth Association, Eng. Bilal Jameel, Senior Vice Chairman, All Pakistan Bed Sheets & Upholstery Manufacturers Association, along with forty (40) other members of the chamber.

The Chamber’s CEO informed that FCSTI was established in 2013 to maximize its members’ success, the community’s competitiveness and the area’s economic prosperity.

The participants took a keen interest in the discussion and highlighted that high freight charges are creating a barrier for exporters. Amid Covid-19, the freight charges fluctuated drastically resulting in the decline in the ratio of exports in the region. Another issue highlighted was the problems faced by the small businesses while acquiring land in the industrial estates. It was recommended that small chambers need to be engaged on the boards of these industrial estate and Special Economic Zones (SEZs) so the rights of SMEs are preserved and ensured. They also suggested that warehouses should be established for exporters’ facilitation in foreign countries while the staff members of embassies should be sensitized about the export potential. The SMEs particularly criticized the imposition of 17% GST on raw material.

The session was attended by Sheikh Asif Iqbal, founder President, Mr. Amjab Mehmood, Senior Vice President, Sh. M. Sherdil, Vice President, along with twenty four (24) members of the chamber. Most of Sargodha’s economy is agro-based and the area is famous for producing the best citrus in Pakistan.

The discussion highlighted that a necessary condition to enhance labour productivity is the access and availability of Technical and Vocational Education and Training (TVET). SMEs do not have the resources to do so and depend on the public institutions providing TVET. At the federal level, National Vocational and Technical Training Commission (NAVTCC) is the regulatory body governing TVET. Each province has a provincial Technical Education and Vocational Training Authority (TEVTA). The closing down of such institutions due to lack of funding was specifically highlighted in the discussion. A deficiency in skill development has thus resulted in the nonavailability of a trained labour force affecting SMEs’ competitiveness and efficiency. Furthermore, there is a missing link between the courses taught at TVET institutes and the actual requirements of the industry, worsening the requisite skill gap. It was suggested that steps should be taken on war footing to tackle the situation in the region.

KATI is one of the vibrant trade and leading industrial associations of Pakistan. It was made operational in 1970 to represent the commercial activities of around 10,000 acres of Korangi Industrial Area. Karachi’s contribution to the national exchequer is around 65% in which KATI’s contribution is around 35%.

The session was attended by Mr. Ehtesham Uddin, former Chairman KATI & chairman of Standing Committees, Mr. Zaki Ahmed Sharif, Senior Vice President, Ms. Maheen Salman, Senior Vice President, Ms. Nighat Awan, Vice President and Mr. Nehal Akhtar, Secretary General along with other members.

The discussions with KATI members highlighted the importance of R&D for the development of SMEs. The national policies should pay adequate attention to micro and small businesses. Start-ups should be encouraged through the provision of incubators and facilitators

The session was attended by Mr. Feroze Alam Lari, Chairman, Mr. Aamir Hassan Lari, Chairman (SC), Mr. Muzzammil Husain, Secretary General along with the members in a large number.

It was highlighted that textile export constitutes around 60% of the country’s total export, thus making it one of the prime sectors that require urgent government support. There are 162 various laws applicable to SMEs. Ease of doing business should be introduced to strengthen the sector. The discussion also pointed toward missing linkages between industry and academia. The technical curriculum should be revised and must include the innovative approaches adopted worldwide. Specifically, in the aftermath of Covid-19, e-commerce support is the need of the hour. Multiple payment gateways should be introduced and a consolidated policy should be formulated on a priority basis.

Furthermore, the gas pricing issue is a major barrier to SMEs’ growth and sustainability. With the current discriminatory natural gas pricing regime in place, SMEs engaged in the manufacturing sector on RLNG cannot compete in the market (as they are charged three times higher prices) in comparison with the existing players operating on indigenous natural gas. The discriminatory gas pricing regime is a major factor responsible for shrinking industries in Sindh. Thus, it is critical to resolving the natural gas pricing issue and a revision in the natural gas pricing mechanism is therefore proposed such that all market players in an industry have a level playing field to operate.

The session was attended by Mr. Rafiq Habib Godil, Chairman PKSEA, Mr. Saqib, Senior Vice President of Karachi Chamber of Commerce & Industry, Mr. Danish Hanif, Chairman Pakistan Yarn Merchants Association, Mr. Abdur Rauf, Managing Director Shahzad Apparels along fifteen (15) other members of the association.

The representative of the Pakistan Yarn Merchant Association highlighted that in addition to the complex taxation system, SMEs are also unable to compete in the market due to various regulatory duties (RDs) imposed on imports under applicable Statutory Regulatory Orders (SROs) issued from time to time. These RDs on the one hand benefit the large players in the market upstream, controlling the supply of essential raw materials, it further gives them discretionary power to exert in the form of high prices and low quality on the other. Due to RDs, the SMEs have to procure raw materials from the local industry at high prices. Likewise, applicable CDs based on Harmonized System (HS) Code are such which are discriminatory and favour some goods under a certain HS Code against a similar good under another HS code.

The session at Hyderabad Chamber of Small Traders & Small Industries was attended by Mr. Saleem-ud-Din Qureshi, President, Muhammad Altaf Memon, Senior Vice President, Muhammad Yasin Khilji, Convener Sub-Committee SME, Mr. Daulat Ram Lohana, former President, Mr. Fahad Hussian, Secretary General, and Mr. Shan Sehgal, Convener Sub-Committee Banking Affairs along with twenty two (22) other SME-affiliated businessmen and industrialists.

The Chamber’s representatives informed that the Chamber is actively working on Kamyab Jawan Program and is providing utmost facilitation to SMEs. The Chamber also conveys the problem of the business community to the government representatives frequently. While discussing the hurdles in availing of financing facilities, it was particularly highlighted that cottage and small industries are widely neglected. Digitalization of SMEs is the need of the hour but is severely lacking. As for SBP’s initiatives amid Covid-19, it was mentioned that policies formulated during the pandemic are useful for small traders but those policies/schemes are not adopted by other banks thus creating extra hurdles to survive in these critical times.

The session was attended by Mr. Fahad Hussain Shaikh, President HYDCCI, Muhammad Wasim, Senior Vice President, and Mr. Javed Iqbal, Chairman Traffic Police Sub Committee along with other members of the Chamber. On the occasion, female entrepreneurs were also present in a large number.

The Chamber is closely working with SMEDA and TDAP. The speakers suggested that display centers should be established to encourage women entrepreneurs in the region. Moreover, training should be given on how to market and sell their products. Apart from a cumbersome tax system and excessive documentation, it was highlighted that commercial banks also require training regarding SME related schemes and credit facilities offered by SBP. Their capacity should be enhanced to ensure ease of doing business.

QCSTSI was established in 2013 for the promotion of the business community of the region. Prominent industries include dry fruits, handicrafts, fruits & vegetables, traders, gemstones and many others. The importance of the area is multifold due to the proximity to two trading borders of Chaman and Taftan linking Pakistan with Afghanistan and Iran.

The session was attended by Mr. Hamdullah Khan Tareen, Chairman, Mir Murad Baloch, Vice President, Mr. Asad Khan Noorzai along with Regional Director TAVTA and businessmen/traders of Quetta.

The discussions highlighted that due to the geographical location generally, barter trade takes place in the region. As banking transactions are generally avoided by the local and foreign traders, a seepage of revenue is noticed. Revenue generation can be increased by curtailing this aspect along with the creation of free zones at the border. This will not only generate revenue for the government but also create employment for natives. All business activities, including import and export of perishable items, are mostly executed via Quetta Dry Port and Chaman and Taftan border crossings with Afghanistan and Iran, respectively

Exporters stated their concerns about the lack of storage facilities in the region, which is essential for the export of fruits from Pakistan. Fruit grading units and other related facilities are also scarce and urgently need the government’s support. It was also noticed that, although most of the business community is associated with the trading sector, the region possesses huge potential for marble processing, chromite processing, livestock and fisheries-related industries.