ISLAMABAD: Heavy monsoon flooding has caused extensive damage to small and medium enterprises (SMEs), rendering tens of thousands of people jobless and leaving the owners in a desperate situation. In these trying times, government assistance is desperately needed to help rebuild the destroyed SME infrastructure to restore their production capacity and the lost jobs.
During a conversation with WealthPK, Waqar Sherazi, an expert on disaster response, said hundreds and thousands of SMEs have been severely damaged in the floods, snatching livelihoods sources of millions.
He further said that SMEs play a vital role in economic development in terms of generating employment and turnover among a whole range of economic indicators.
These SMEs also contribute to social cohesiveness and the vibrancy of local communities, but the devastating floods have deprived many people of their businesses.
Khurram Mukhtar, patron-in-chief of Pakistan Textile Association, told WealthPK that small textile mills, which make products ranging from bedsheets to towels mainly for consumers in the US and Europe, had started shutting down as floods had wiped out cotton crop on a large part of land.
“As many as 100 smaller mills have suspended their operations due to shortage of high-quality cotton, high fuel costs, and poor recovery of payments from buyers in flood-hit areas,” he said.
“The government needs to allocate funds to help the SMEs rebuild their battered infrastructure. Due to non-availability of funds, many SME entrepreneurs feel abandoned. Hit hard by floods and soaring prices, self-employed Pakistanis want government help to get back on their feet,” he added. –INP
