Imran Khan’s 100 day employment plan in Let Pakistani Small and Medium Enterprises (SME)

Asad Umar, PTI’s finance minister designate revealed a SME expansion plan which says:

  • 3 year tax holiday – to be increased to half the rate for the next two years
  • Easy financing
  • Support in skill training
  • Special tax rates for engineering, agricultural and garments value added sector

A thorough survey of our existing SMEs – that are doing a wonderful job at import substitution and job creation – has revealed the following:

  • All avoid coming into the tax net
  • All point towards bureaucracy as the main hurdle in expansion
  • Financing for expansion is too cumbersome to acquire
  • Risk is too high in case project fails
  • The government institutions act as extortionists
  • Finding talented manpower is impossible
  • There is no legal protection in case of disputes

The following are the recommendations to boost SME sector, which is the backbone of employment:

  • Enforce the rule of law and make arbitration simple and cheap.
  • Privatize some tax collection functions, especially toll, levy, surcharge, border imports, Value Added
  • Digitize the economy like India and investigate every transaction beyond Rs 50,000
  • Let the provinces collect their own taxes – Federal government to handle GST, services, income and tariffs.
  • Heavily Spend on skill training at the schools – preferably freelance work online
  • As President Reagan said, ‘less government is the only good government’. So, ruthlessly slash dead wood people and procedures that borders on extortion and criminal neglect – and I mean at every institution.
  • Give financial protection from total ruin to SMEs from state coffers
  • Muscle countries around us to open up their market for our mediocre SME products, so our SMEs evolve
  • Force the financial sector to introduce hedge funds and instruments to fund SMEs with promising innovations.
  • Digitize the government sector; all procedures and rules have to be displayed online for all decision making to make IT platforms
  • Our commercial councilors to facilitate difficult to import components for Value Addition inside the country.
  • Make it simpler for SME owners to temporarily import super skilled manpower and pay them in US Dollars
  • Encourage Patenting, research publications by financial rewards and punish Intellectual Property infringements
  • Enforce labor laws to protect vulnerable workers from blood sucking bourgeois
  • Hand over Mother Ship engineering complexes to wealth funds so that the hatchlings in the private sector flourish under their wings.

 

 

 

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