SITE Proposes Capping SESSI, EOBI Contributions for SMEs

Karachi — The SITE Association of Industry, in collaboration with the International Labour Organization (ILO) and the Small & Medium Enterprises Development Authority (SMEDA), recently organized a consultation session aimed at addressing challenges faced by the textile and automobile sectors.

The session focused on identifying key obstacles faced by enterprises and prioritizing incentives to support the formalization of SMEs and their supply chains.

The session offered members a chance to provide feedback on the already identified issues, share practical recommendations and incentives for SMEs and assist in shaping the future national roadmap for the SMEs formalization.

M. Naeem Ansari (ILO), Syed Nazar Ali (EFP), Mukesh Kumar (SMEDA) and Muhammad Awais (Project Consultant) were present in the session.

SVP Khalid Riaz of SITE Association highlighted that many SMEs have been contributing to SESSI and EOBI for years without receiving proportional recognition or services in return. He proposed a rationalized cap on contributions, especially for small enterprises operating on slim margins.

He emphasized that formalization must be value-driven, combining regulation with tangible facilitation and services for contributing employers.

The participants were informed that ILO, in coordination with SMEDA, is developing a National Roadmap for SME formalization, focusing on key sectors such as textile and auto. The roadmap includes findings from a comprehensive baseline study presented during the session.

Majyd Aziz, Former President of EFP, appreciated SMEDA’s role and stressed the need for simplified inspections, government procurement from SMEs, and OSH compliance support from large industries.

Regional Chairman APTPMA Anwar Aziz suggested linking social security contributions to turnover and revisiting gratuity laws.

Former SVP Abdul Kadir Bilwani advocated for tax reforms, including abolishing withholding tax and capping social benefit contributions. He also proposed handing over Valika Hospital’s management to SITE Association.

Secretary General EFP Syed Nazar Ali encouraged sustainable and inclusive practices to motivate businesses towards formalization.

The session concluded with remarks from other industry leaders and a vote of thanks from Muhammad Tahir Goreja, Chairman of the Labour Sub-Committee.