UNISAME Calls on Prime Minister to Address SME Sector Challenges in Upcoming Budget

Karachi: The Union of Small and Medium Enterprises (UNISAME) has called on Prime Minister Shehbaz Sharif to address the pressing needs of the SME sector in the forthcoming budget for 2025-26. The organization emphasizes the critical importance of meeting these demands to help the sector navigate challenging global conditions.

Zulfikar Thaver, President of UNISAME, highlighted the turmoil faced by SME exporters due to increased taxes and rising freight costs. These issues are exacerbated by regional conflicts forcing ships to take longer routes, as transit through Indian waters is restricted.

Thaver urged the Prime Minister to direct the Federal Board of Revenue (FBR) to cap income tax on SME profits at 25%. The sector is struggling with high electricity charges, elevated raw material costs due to global inflation, and increased freight rates linked to war zones in Yemen, Ukraine, and the Indian Ocean.

The Union Council members also appealed for the establishment of an SME export bureau to promote SME products and geographical indication goods with value addition. They stressed the necessity of budget provisions for this initiative.

Additionally, UNISAME advocates for increased funding for the Small and Medium Enterprises Development Authority (SMEDA). This funding would support projects facilitating joint ventures and partnerships with Chinese entrepreneurs, as well as technology transfer under CPEC. There is a call to establish a technical institute to bridge the technological gap.

Thaver warned that without strengthening SMEDA, its role remains nominal, asserting that decisive action is required. The Union Council urges the Prime Minister to prioritize these matters in the upcoming budget to ensure the survival and competitiveness of the SME sector.