Analyst describes SMEs as principal participants in overall economy

KARACHI: The SMEs with a largest size of 82 percent of our total economy are said to be the main participants of the economy by contributing 45 percent share in the GDP as a whole, including the main lot of vendors, shopkeepers, traders, importers, exporters and middle man, etc. In our country and in the past SMEs have been neglected, constantly, there have been problems with their limited access to credit, said Ateeq ur Rehman (economic & financial analyst).

The cost of credit was not only expensive but borrowing was as difficult as a “hard nut to crack”. We have seen that banks have never preserved separately and allocated funds for their credit line and financing. Lengthy procedures for registration, licensing and compliances were an excessive bureaucratic approach that was routine of the day.

Talking about SMEs, the tax structure has been too complicated and complex, having frequent changes not only in taxation systems but also regulation imposed by officials.