Raise in POL prices to push SMEs to closure

Published: July 03, 2009

KARACHI - The Union of Small and Medium Enterprises (Unisame) has invited the attention of the Prime
Minister Yousuf Raza Gilani to the impact which will be felt due to the increase in the price of petrol, gas,
electricity on the battered SME sector and urged him to take up the matter with the Ministry of Finance before
the collapse of the SME industries engaged in textiles, engineering, food processing and general merchandise.
President Unisame Zulfikar Thaver said it is strange that in spite of being fully aware of the hardships the SME's
are facing due to economic melt down, inflation and financial crisis, the government is bent upon increasing
prices at the behest of the IMF without examining the consequences. He lamented that the increase in the prices
of fuel will now make the cost of production so high that most of the SME units will be compelled to shut shops as
it will be difficult to bear the increase in cost of production as the markets both domestic and international are not
supportive due to recession and reduction in inventory by the big and the small.
He said the govt should have increased the prices gradually after ensuring avenues of growth, curbing inflation,
upgrading the SME units and planning according to the economic norms. The Union urged the govt to form a
committee under experts to study the ways and means to save the economy.

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