The Japan Trade Union Confederation demanded an over 2 percent increase in base salary, and the Japan Federation of Economic Organizations expressed its willingness to make the greatest efforts to raise wages. These positive developments may be a sign that firms’ and households’ price perceptions and related economic behavior are gradually adjusting to a moderately inflationary environment.
Among various stakeholders that have to play their role for SME development, I think, State Bank of Pakistan and Commercial Banks both need to play a proactive role in improving access to finance for SMEs. As far as SBP is concerned, it has taken a number of important initiatives for improving access to credit for SME sector.