The Union of Small and Medium Enterprises (UNISAME), the Small and Medium Enterprises Development Authority (SMEDA) and the International Finance Corporation (IFC) in a meeting discussed the promotion of 'Alternate Dispute Resolution' (ADR)  in SME Chamber of Commerce and Industry (SMECC&I) sponsored jointly by all the SME stakeholders.

Isfandyar Ali Khan Project Officer ADR and Saima Zuberi Associate Operation Officer explained the salient features of the ADR and expressed their  full support to the SMECCI and their commitment to facilitate the members with the ADR system.

They said the IFC which is an organization sponsored by the World Bank would extend its institutional support to the SMECC&I  and has suggested that ADR which has been omitted in the SME policy and the SME act should be included in the agenda of the SMECC&I and the SME policy and the act should also be amended to include ADR for the benefit of the sector.

The Union of Small and Medium Enterprises (UNISAME), the Small and Medium Enterprises Development Authority (SMEDA) and the International Finance Corporation (IFC) are meeting on 23rd December 2009 to discuss promotion of 'Alternate Dispute Resolution' (ADR) in the articles of association of SME Chamber of Commerce and Industry (SMECC&I).

President Unisame Zulfikar Thaver said the IFC which is an
organization sponsored by the World Bank has expressed its desire to extend its institutional support to the SMECC&I  and has suggested that ADR which has been omitted in the SME policy and the SME act should be included in the agenda of the SMECC&I and the SME policy and the act should also be amended to include ADR for the benefit of the sector.

President, Union of Small and Medium Enterprises (UNISAME) Zulfikar Thaver and member National Committee SMEs (NCSMEs) has called upon the Federal Minister to comprehend the fact that the government needs to focus on the SME sector as the sector is capable of reviving the declining economy and no time should be lost in this endeavor.

He said considering the fact that the large sector has slowed down due to the prevailing conditions and is apprehensive of the increase in fuel prices, wages and cost of production which will hamper their feasibilities and put them out of gear for a certain period till prices stabilize as against this the SME sector is vibrant and has the built-in mechanism to overcome as the SME industries are owner driven.

Explaining the salient features of the sector he said this sector comprises of 96 percent of all enterprises in trading, manufacturing, services and agriculture and is capable of boosting the economy with a little pampering, said a statement issued here Sunday.

He emphasized that this sector needs land at concession, finance at affordable mark up and back up support of leasing, insurance, good logistics and technical support from institutions like the Small and Medium Enterprises Development Authority (SMEDA), Trade Development Authority of Pakistan (TDAP), Pakistan Council of Scientific and Industrial Research (PCSIR), Engineering Development Board (EDB) and other SME promotion and development organizations.

The Union of Small and Medium Enterprises (UNISAME) has recommended the Islamic mode of financing as the best option for the SMEs during the present period of reduced financing by commercial banks.

Kazi Shafiquddin Hub Operations Manager Bank Islami Pakistan Ltd (BIPL) explained the benefits of Islamic mode of financing to the members of UNISAME and emphasized the fact that in the present scenario Islamic mode of financing is the most suitable where the financing is based on partnerships under Mushariqa and Mudaraba and the burden is not felt by the borrowing partner as it is based on the profitability of the venture.

He also suggested other means of financing such as Ijara where the subject moveable property is given on lease to the borrower and the borrower repays in  easy installments which are treated as rent and on completion of installments the moveable property is transferred to the borrower. He also mentioned the Maskan financing for housing and outlined the features for the SMEs who are desirous of buying houses for themselves but are unable to pay in lump sum due to involvement in business trading or industry and by availing the facilities of Maskan they can own their houses and save the rent amount by paying the loan.

The Union of Small and Medium Enterprises (UNISAME) has invited the attention of Federal Finance Minister, Shaukat Tarin, that the amount of Rs2.5 billion for SME Development Support Fund and Rs2.5 billion for Venture Capital for Small and Medium Enterprises (SMEs) have not been released although a period of almost five and a half months have passed since the announcement of the budget for 2009/10.

President, UNISAME, Zulfikar Thaver, lamented that SME promotion and development is suffering due to non-release of funds and he pointed out that SME promotion and development is crucial to the economy as the sector comprises of 96 per cent of the total enterprises in the country.

President UNISAME has pointed out that SMEDA offers following services for small and medium sized entrepreneurs:  Assistance in Raising Finance, Financial Advice, Project Identification  Business Plan Development, Technical Advice  Marketing Advice (Branding, Labeling, Packaging, Distribution, Promotion etc)  Company Incorporation, Export Registration & Regulatory Advice  Sales Tax, Custom Duty, Excise Duty etc.  Training & Development  Information Services (Library, Databases, Project briefs, Pre-feasibility  Besides the above SMEDA can identify numerous projects for potential entrepreneurs. All of these projects offer alternative investment opportunities for SMEs but success of a project, apart from other factors, depends on the profile of the SME.

The Union of Small and Medium Enterprises (UNISAME) has advised the SMEs to impress upon their buyers to use the banking channel for remitting funds and also to use the banking channel themselves for remitting amounts to global suppliers and commission or expenses to agents to avoid complications.

President UNISAME Zulfikar Thaver said the SME exporters have been receiving payments through Telegraphic Transfers (TT) from overseas buyers  through exchange companies and submitting the TTs to their respective bankers for processing of export documents but of late the Federal Investigation Agency (FIA) has obtained list of beneficiaries from the exchange companies and are issuing summons to the SMEs for investigations causing unnecessary botheration to the SMEs who are mostly not involved in any illegal business of money laundering or flight of capital.

There is no doubt that the SME sector is the backbone of the economy and almost every government of the world has set up SME cells to promote and develop it, the government here has also given priority to the sector and the different ministries have been directed to consider the aspect of SME promotion in their agenda.

On our part as the first step to SME promotion, we created awareness and then we identified the impediments and keeping the roadblocks in mind, we carried out a survey and suggested the remedies to the government and are pleased to state that the government has considered each of our recommendations very seriously and has included the remedies in the SME policy and the SME act .

We have assessed that there are 3.8 million SMEs in Pakistan, we have derived this figure from the strength of the various members of the chambers of commerce , trade bodies and community welfare organisations and arrived at this figure. UNISAME has urged the government to focus on the following requirements of the sector for its rapid growth and development.

The State Bank of Pakistan has introduced financing facility for establishment of new power projects using renewable energy with a capacity of up to 10 MW with a view to meeting the growing electricity demand of the country.
According to a circular (SMEFD Circular No. 19) issued Tuesday, sponsors of power projects can avail financing facility through banks/DFIs for new imported and locally manufactured plant, machinery and equipment. Preference shall be given to projects being established in the less developed areas, it said.

As per eligibility criteria laid down in the circular, financing will be available to the prospective sponsors desirous of setting up of power projects with a capacity of up-to 10 MW, who have completed prescribed requirements of AEDB, the concerned regulatory authority and other relevant govt dept/authority, in compliance with the prevalent Renewable Energy Policy of the GoP.

Having realized the urgent need for a chamber of commerce and industry for the small sector the Small and Medium Enterprises Development Authority (SMEDA) and the Union of Small and Medium Enterprises (UNISAME) have agreed to jointly set up the SME Chamber of Commerce and Industry (SMECCI) to promote trade, services and industry and to enhance the scope of entrepreneurship and self employment 

President UNISAME Zulfikar Thaver welcomed Feroze Ahmad Manager Legal Services SMEDA  and discussed the  formation and the advantages of setting up SME Chamber of Commerce and Industry

The Ministry of Industries and Production has submitted the flawed Small and Medium Enterprises (SME) Development Bill 2009 to the Cabinet for approval, in principle, as other Ministries have expressed disagreement with some of the recommendations of the draft, sources told Business Recorder.

After approval, in principle, by the Cabinet, the proposed Bill can be further fine-tuned, if directed by the Cabinet," sources quoted the Ministry as suggesting to the Cabinet, which is scheduled to meet on November 18, 2009. Sources said that in January 2004, the Minister for Industries and Production had constituted a task force on Small and Medium Enterprises (SME) Development Policy.

The Union of Small and Medium Enterprises (UNISAME) thanked Prime Minister Syed Yousuf Raza Gilani for promoting the Chief Executive Officer (CEO) of the Small and Medium Enterprises Development Authority (SMEDA) to grade 22 and thus giving Smeda a higher status for better results.

SME rice exporters members on renewal of  their membership have been classified as associate members merely because they are not holding sales tax registration which is not of much consequence in rice export except for those who claim rebate on packing material.

President UNISAME Zulfikar Thaver has invited the attention of the MINCOM to the fact that REAP has shown discrimination by placing SME rice exporters in a separate category and deprived them of their rights of voting for the managing committee by labeling them as associate members and treating them as inferior members and side tracking them in this fashion.

The Union of Small and Medium Enterprises (Unisame) has urged the ministry of commerce to amend the Trade Organisation Ordinance (TOO) to remove discrimination in membership rules for SMEs and large companies. 

President Unisame Zulfikar Thaver said in a statement that the ordinance had fixed different parameters for the big and small enterprises and this is against the Constitution of Pakistan. 

It is reported that the Director Trade Organisation (DTO) has advised trade bodies to have two types of memberships -- the associate and the corporate, but most of the associations are charging the same fee from both the category of members.

Pakistani Ambassador to the Republic of Chile Burhanul Islam has invited the small and medium sized exporters to visit this Latin American State to promote exports of their goods which is a promising market for value added agricultural produce.He promised to introduce SMEs to importers and recommend them to the merchants of the republic.

Governments everywhere must make the interests of small and medium sized businesses a key priority or put sustained economic recovery at risk, three of the world’s leading accounting bodies have warned following a global survey which they commissioned.

The Union of Small and Medium Enterprises (UNISAME) has urged the
ministry of food,agriculture & livestock (MINFAL) to install high
technology solutions for grain storage and drying.

President Unisame Zulfikar Thaver said  agricultural storage  systems are
urgently needed as due to climactic changes much damaged is caused to
crops due to unexpected rains.

State Bank of Pakistan has issued the following details about refinancing facility for modernisation of Small and Medium Enterprises (SMEs) communicated through its circular No. SMEFD 17 dated November 2, 2009.

AlBaraka Islamic Bank has offered to finance rice processors and exporters under Islamic mode of financing and suggested the small and medium sized rice exporters to avail finance under Ijara, Murabaha and Musharaka systems as per Shariah.

Wazir Ali Manager AlBaraka Islamic Bank in a meeting with the Union of Small and Medium Enterprises (UNISAME) explained the salient features of Islamic banking and agreed to finance the members of Unisame if they fulfilled the criteria of providing financial statements of last 3 years showing profitability with proof of turn over and security acceptable to the bank.

The Conference on the foundation of the World Union of Small and Medium Enterprises will be held on 9thth – 10th November 2009 in the Republic of San Mario and hosted by C.E.S.A. Foundation, a SMEs supporting Organization in co-operation with the Republic of San Marino.

SMEs supporting Institutions have already received a personal Letter of Invitation to participate in the Conference hosted by the Republic of San Marino .

The Union of Small and Medium Enterprises (UNISAME) has invited the attention of Prime Minister Syed Yousuf Raza Gilani regarding the shortcomings of the Ministry of Industries and Production (MoI&P) which is out of perspective in SME promotion and development.
President Unisame, Zulfikar Thaver has urged the PM to remove the Small and Medium Enterprises Development Authority (SMEDA) from the fold of MoI&P and place it under the cabinet division and enable it to have direct control of Smeda.

The Union of Small and Medium Enterprises (Unisame) has informed Prime Minister Yousuf Raza Gilani about the alleged shortcomings of the industries and production (I&P) ministry in the promotion and development of Small and Medium Enterprises (SME).

President Unisame urges SMEs to modernise their factories by availing the facilities offered by AlBaraka
KARACHI: AlBaraka Islamic Bank has offered to finance rice processors and exporters under Islamic mode of financing and suggested the small and medium sized rice exporters to avail finance facility under Ijara, Murabaha and Musharaka systems.

NEW DELHI: Basmati rice exporters fear any hike of minimum export price (MEP) and additional taxes on export of basmati rice in view of lower rice production in the Kharif season due to poor monsoon in the country could affect exports from India.The All India Rice Exporters Association wants the Government to treat basmati rice as a niche product contributing to the precious foreign exchange and demanded the Government to de-link the aromatic rice from the food security issue.“The exports markets have been developed over the last 25 years and any move to hike MEP would be detrimental to the exports,” VK Arora, President, All India Rice Exporters’ Association said adding basmati is not linked to the food security issue.

President Unisame Zulfikar Thaver said it is reported by growers that Sindh and Balochistan have managed to get a production of 3m ton of rice comprising of 2.5m tons long grain Irri 6 and Irri 9 and about 0.5m D 98 Basmati and Super Basmati and in Punjab and NWFP almost 3m tons of rice is expected comprising mainly of 1121, 386, KS 282 and Super Basmati.

The Union of Small and Medium Enterprises (Unisame) has demanded setting up of SME Insurance and SME Fund for financing the SMEs. The union tried to drive the Prime Minister’s attention toward the issue that the SME Bank and its subsidiary the SME Leasing lack the resources to finance SMEs and the commercial banks are pursuing their own goals and not interested in financing SMEs without collaterals.

SMALL and medium enterprises — no less than four million in number — are waiting for broad economic recovery to resume their operations in full swing. 

In the last fiscal year, the SME sector grew 7.5 per cent but thousands of SMEs had to cut production, suspend business and sack employees as large-scale manufacturing (LSM) declined by 8.4 per cent, resulting in huge job orders.. In addition, a 20 per cent plus inflation and almost equal bank interest rates coupled with electricity and gas shortages hit them hard. 

Now as LSM has begun crawling up, inflation has decelerated and interest rates softened, business opportunities are opening up for SMEs. Some large-scale industries that have picked up pace, like automobiles, electronics, light engineering, edible oil, chemicals and paper and board, outsource a lot of jobs to SMEs and get supplies of ancillary items from them. If they keep growing—and chances are that they will—it will lift sagging output of SMEs in manufacturing sector.

Registration and enforcement of Trade Mark (Brand/Logo), Copy Rights and Patents

KARACHI, Oct 9: The Union of Small and Medium Enterprises (Unisame) has urged the ministry of commerce to amend the Trade Organisation Ordinance (TOO) to remove discrimination in membership rules for SMEs and large companies. 

President Unisame Zulfikar Thaver said in a statement that the ordinance had fixed different parameters for the big and small enterprises and this is against the Constitution of Pakistan. 

It is reported that the Director Trade Organisation (DTO) has advised trade bodies to have two types of memberships -- the associate and the corporate, but most of the associations are charging the same fee from both the category of members. 

The Union of Small and Medium Enterprises (UNISAME) has complained to the newly appointed Administrator of  Rice Exporters Association of Pakistan (REAP)  by the Secretary Ministry of Commerce (MINCOM)  that regular SME rice exporters members on renewal of  their membership have been classified as associate members merely because they are not holding sales tax registration which is not of much consequence in rice export except for those who claim rebate on packing material.

The International Council of Small and Medium Enterprises (ICSMEs) 
expressed surprise on the non inclusion of SME sector representatives 
in the  national business and economic committees being formed by the 
government.

Rozmene Sheriffe president ICSMEs said  SMEs are expected to play 
significant role in the coming years due to excessiveness of the large 
sector and the government should give priority to the sector, put SME 
promotion and development on fast track, begin capacity building from 
grass root level and direct the Small and Medium Enterprise 
Development Authority (SMEDA) to do hand holding  of entrepreneurs 
scientifically and focus on clusters in targetted areas.

The Union of Small and Medium Enterprises (UNISAME) urged Mian Manzoor
Watoo federal industries minister to intervene in the budget proposals
and set right the adverse proposals badly affecting the small
entrepreneurs (SME) and  causing a setback to the sector

President UNISAME Zulfikar Thaver said the SMEs are skeptical and
really perturbed about the proposals and have apprehensions that the
sector already under heavy burden of inflation on the one hand and
recession on the other is facing difficult times and the budget makers
have not realized that it is this sector which can really revive the
economy if mobilized.

He said the cost of production has increased tremendously and the
goods have become uncompetitive globally and instead of making efforts
to reduce the cost of production and the cost of finance more taxes
have been levied and an entrepreneur earning Rs 100000  per annum is
liable to pay income tax.

ISLAMABAD (APP) - The Union of Small and Medium Enterprises (UNISAME)
Wednesday urged the Small and Medium Enterprises Development Authority
(SMEDA) to facilitate and support SME who have achieved bench marks
to establish brands for their products for global marketing.
President UNISAME Zulfikar Thaver said it is very important for SMEs
to market their products globally under their brand names for
exclusive identification and promotion and it has now become
increasingly difficult for SMEs to sell unbranded products.
Secondly he urged the Pakistan Standard and Quality Control Authority
(PSQCA) to survey the SME industries located all over Pakistan and
provide them the bench mark requirements and assist them to obtain the
PSQCA mark.

ISLAMABAD (APP) - The Union of Small and Medium Enterprises (UNISAME) has urged the sponsors of the 3rd SME conference to be held on Aug 8 to highlight the urgent need of stabilizing the Pakistani currency for economic stability which is vital for growth.
Showing concern over the devaluation of the Pakistan rupee against the US dollar, President of UNISAME Zulfikar Thaver said that the import of raw material, packing material and plant, equipment, parts and machinery will become costly and it will increase the cost of production.
Similarly, the temporary benefit to the exporters who will earn more for every dollar will soon be wiped out by their own purchase of inputs, he said while talking to CNBC. Zulfiqar Thaver called upon the policy makers to take notice of the devaluation of Pakistani rupee.