30,000 new businesses will be given unsecured loans up to Rs 1 crore, Minister of Industry and Production. Photo: File
Islam Abad: The Federal Government has announced Small and Medium Entrepreneur (SME).
Addressing a press conference on SME policy along with Federal Minister for Information Fawad Chaudhry, Minister for Industries and Production Khusro Bakhtiar said that the federal cabinet has approved a cohesive SME policy in the history of Pakistan. Loans will be given on easy terms and unsecured loans will also be given.
The Minister of Industry and Production said that according to an estimate, there are more than 5 million small and medium enterprises in Pakistan. There are 35,000 large scale industries in the country. Large-scale employment opportunities exist in small and medium-sized industries, small and medium-sized businesses faced major problems, which led to increased business costs.
The Federal Minister said that SMEs have been divided into three tiers. In the first tier, many sectors do not require any NOC. The inspection has been done and now the inspector will not go like this, a portal has been created in this regard which will eliminate bribery. Turnover tax has been kept at 0.5% for those who have 100% turnover, 7.5% income tax will be applicable.
Khusro Bakhtar said that 30,000 new businesses would be given unsecured loans of up to Rs. 10 million. Allocated in Punjab, Balochistan and Khyber Pakhtunkhwa, SMEs will also be contracted within government contracts, 25% tax exemption has been given to women in SMEs sector, Rs 30 billion fund allocated under SMEDA. Up to Rs 80 crore, the industry will get SME policy concessions, business plans will be provided by commercial banks, commercial banks will provide loans up to Rs 10 million at 9% interest rate.
Information Minister Fawad Chaudhry said that today we are going to announce SME policy, we were an import economy and now we are shifting the economy, Pakistan needs a strong industrial base and productivity must be increased.
Fawad Chaudhry said that we were an import economy, the custom in Pakistan is that we think we will live on imports, Pakistan needs a strong industrial base, if we can not give Pakistan a strong industrial base then economic problems. Will not be able to get out