Micro, small enterprises face survival threat

Entrepreneurs voice concern over migration of industrial units from Lahore due to lack of incentives

LAHORE:

A delegation of SME entrepreneurs from Lahore's auto sector met with Small and Medium Enterprises Development Authority (Smeda) Director Mashood Khan to highlight the pressing challenges threatening the survival of micro and small enterprises in the industry.

Entrepreneurs expressed serious concern over the gradual migration of the documented industrial units, operational for over six decades in Lahore, to other areas due to the lack of government incentives and plug-and-play facilities.

They emphasised that most small and medium enterprises (SMEs) did not have the financial capacity to relocate. The unplanned conversion of industrial land into housing societies poses a direct threat to employment and the livelihoods of thousands of families dependent on these businesses. The entrepreneurs underscored the need for ease of doing business for SMEs and also appreciated the efforts of the Engineering Development Board (EDB) to lend support to the industry.

They floated a proposal that unnecessary audits and notices from various government departments be avoided, adding that the role of the government should be that of a facilitator, not a hurdle to the businesses being run by the SMEs. The core purpose of the meeting with small and medium-scale business operators and auto parts manufacturers was to build consensus among all stakeholders on the local availability and quality of raw material.

EDB chief executive officer gave directives that all quotas for auto parts makers be maintained until PSML could fully assure its customers of its capability to meet the required quality and technical standards set by the Original Equipment Manufacturers.

In line with the prime minister's vision to provide easy access to financing, the entrepreneurs asked for clarity on the quantum of financing available for SME manufacturers, along with collateral-free and single-digit financing options.

Additionally, it was highlighted that for micro and small enterprises, it was the need of the hour to establish industrial zones around major cities of Pakistan, particularly Lahore. The Punjab government has recently issued notices to small industries to shift their factories to the outskirts of Lahore. "Without properly equipped zones, the relocation is not feasible," the meeting participants said. Mashood Khan assured the delegation that Smeda and Special Assistant to the Prime Minister on Industries Haroon Akhtar Khan were committed to improving business conditions for the SMEs. He agreed that all points raised in the sitting would be presented in the next meeting with government authorities. Lahore Chamber of Commerce and Industry (LCCI) Board Director and Executive Committee Member Iftikhar Ahmad submitted additional suggestions to the Smeda director. Mashood Khan promised to take up the matter with the relevant authorities for its resolution. Industry representatives expressed hope that concrete policy actions would be taken to protect local manufacturing, jobs and investment.