The government is likely to give Special Economic Zones (SEZ) status to Small and Medium Enterprises Development Authority's (SMEDA) excellence parks and tax incentives will be extended, well informed sources told Business Recorder.
For this purpose, SMEDA will be converted into a commercial sustainable corporation to help and support SMEs. The Ministry of Industries and Production has started the process for common definition of SME and a governing board is being established by Nov 30.
The hiring process of CEO and Board members will be completed by Dec 1 after being vetted and approved by the Board. The sources said, a three-year strategy plan with the associated budget will be completed and approved by the PPIB by Jan 31, 2020. The Ministry will start the process of establishing linkages with the mercantile exchange to ease the process of sale, storage and subsequent sale of produce of small farmers. MoI&P and SMEDA will provide plan by Jan 31, 2020.
According to sources, process will be initiated for establishing service centres with a view to creating strategic reserves for essential food commodities based on output of small farmers.
Rules will be established for creating trading houses by large Pakistani businesses on the pattern of Japan. This process will be completed by the MoI&P, State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR). Current lending practices would be made SME friendly and value chains will be financed. Prime Minister's Adviser on Institutional Reforms and Austerity, Dr Ishrat Hussain will prepare a plan for this purpose.
State Bank of Pakistan has been directed to create financing instruments to support Angle and Venture capital by Dec 15, 2019. Encouraging of private sector through tax incentives for creating early stage through (Angle) and VC funds was one of the proposals of the draft policy.
Ministries of Industries and Commerce will collaborate with Kamyab Jawan SME lending program to ensure effectiveness by channeling funds to youth via existing successful channels.
FBR will present a plan for approval by Dec 31, following the examples of successful country programmes like Mexico, Malaysia and China.
For instance, the government may allow unabsorbed capital allowance and accumulated losses to be carried forward and deducted from income of the company and for potential export products allow its treatment for up to 10 years.
The sources said, Prime Minister Imran Khan who is Minister in-charge Industries and Production, has directed the ministry to formulate a comprehensive proposal for revival of SMEs and present it to the Economic Coordination Committee (ECC) of the Cabinet.
“Proposals regarding ease of doing business for LSM are agreed to be implemented after clearance from Finance Division," the sources maintained.
Source
For this purpose, SMEDA will be converted into a commercial sustainable corporation to help and support SMEs. The Ministry of Industries and Production has started the process for common definition of SME and a governing board is being established by Nov 30.
The hiring process of CEO and Board members will be completed by Dec 1 after being vetted and approved by the Board. The sources said, a three-year strategy plan with the associated budget will be completed and approved by the PPIB by Jan 31, 2020. The Ministry will start the process of establishing linkages with the mercantile exchange to ease the process of sale, storage and subsequent sale of produce of small farmers. MoI&P and SMEDA will provide plan by Jan 31, 2020.
According to sources, process will be initiated for establishing service centres with a view to creating strategic reserves for essential food commodities based on output of small farmers.
Rules will be established for creating trading houses by large Pakistani businesses on the pattern of Japan. This process will be completed by the MoI&P, State Bank of Pakistan (SBP) and Federal Board of Revenue (FBR). Current lending practices would be made SME friendly and value chains will be financed. Prime Minister's Adviser on Institutional Reforms and Austerity, Dr Ishrat Hussain will prepare a plan for this purpose.
State Bank of Pakistan has been directed to create financing instruments to support Angle and Venture capital by Dec 15, 2019. Encouraging of private sector through tax incentives for creating early stage through (Angle) and VC funds was one of the proposals of the draft policy.
Ministries of Industries and Commerce will collaborate with Kamyab Jawan SME lending program to ensure effectiveness by channeling funds to youth via existing successful channels.
FBR will present a plan for approval by Dec 31, following the examples of successful country programmes like Mexico, Malaysia and China.
For instance, the government may allow unabsorbed capital allowance and accumulated losses to be carried forward and deducted from income of the company and for potential export products allow its treatment for up to 10 years.
The sources said, Prime Minister Imran Khan who is Minister in-charge Industries and Production, has directed the ministry to formulate a comprehensive proposal for revival of SMEs and present it to the Economic Coordination Committee (ECC) of the Cabinet.
“Proposals regarding ease of doing business for LSM are agreed to be implemented after clearance from Finance Division," the sources maintained.
Source
