10-year industrial policy finalised
The prime minister of Pakistan has tasked the Ministry of Industries and Production to discuss and review the current industrial policy, keeping in view that the share of industrial sector in GDP in 1996 was 26 percent which in 2025 has reduced to 18 percent.
The Ministry of Industries and Production, following the prime minister's directives constituted eight different high-powered sub-committees to look into the matters of reshaping the industrial sector of the country, here on Friday presented the recommendations for the revival of industrial sector to the Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan during a high-level meeting.
Long-term industrial policy on the anvil
As per the policy recommendations of prime minister's constituted committees, the policy will remain valid for 10 years and the government along with other stakeholders after every 18 months will review the progress.
The government will ensure improved credit to the small and medium enterprises (SMEs) and distressed segment.
Special amendments in various laws will be made to create business-friendly environment and ensure the investors security as well as promoting localisation. The sick industrial units will be restored and banks will be encouraged to provide them loans.
During the meeting, the committee members finalised the recommendations of eight specialised sub-committees. These proposals were reviewed in detail, marking the beginning of the implementation phase for the country's new industrial policy.
Haroon Akhtar Khan highlighted that the contribution of the industrial sector to GDP has declined from 26 percent in 1996 to 18 percent in 2025, stressing the urgent need to revive the sector. He emphasised the importance of boosting exports and developing import substitutes to stabilise the economy.
To address the challenges facing the industrial sector, eight sub-committees were constituted. Among their key proposals: The State Bank of Pakistan will issue guidelines for the revival of sick industries and resolution of debts.
Amendments have been proposed to the Corporate Rehabilitation Act, 2018. Banks have been advised to use data forecasting tools to detect early signs of industrial sickness. Industrial unit classification has been determined in consultation with the Pakistan Banking Association.
To incentivise manufacturing, a reduction in corporate tax from 29 percent to 26 percent over three years has been recommended.
Amendments to the Securities and Exchange Commission of Pakistan (SECP) Act, the Anti-Money Laundering Act, and the Income Tax Ordinance have also been proposed.
To ensure swift execution, SAPM Haroon Akhtar Khan has formed 10 new implementation sub-committees and instructed them to show tangible results within a week.
He stated that the new industrial policy is comprehensive and has the potential to usher in an industrial revolution in Pakistan.
Commending the committees for their exceptional performance in a short span, Khan added that the finalised recommendations have been presented to Prime Minister Shehbaz Sharif, who appreciated the effort.
Copyright Business Recorder, 2025
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