The Pakistani government has finalized a new industrial policy to rescue the declining manufacturing sector, which has been shrinking for years. The policy was approved during a high-level meeting of the Industrial Policy Committee, chaired by Special Assistant to the PM, Haroon Akhtar Khan, in Islamabad.
Officials in the meeting showed concern that industry’s share in GDP has dropped to just 18%, down from 26% in 1996. They stressed that urgent reforms are needed to boost exports, reduce import dependence, and stabilize the national economy.
The committee approved suggestions from eight subcommittees, which proposed major reforms. These included reviving sick industries, issuing loan restructuring guidelines, and changing tax laws like the SECP Act, Anti-Money Laundering Act, and Income Tax Ordinance. One key financial suggestion was to reduce corporate tax from 29% to 26% over three years to attract investment.
The meeting also urged banks to use data tools to detect early signs of industrial crisis. The State Bank was asked to lead efforts to provide relief to struggling industries. Officials highlighted that many small and large industrial units have closed down due to high costs, power issues, and lack of support.
To ensure quick action, the committee formed 10 new subcommittees with a strict deadline: one week to submit practical results. Haroon Akhtar Khan called the policy “comprehensive and historic”, saying it could be the start of an industrial revolution in Pakistan. The final proposals have been sent to Prime Minister Shehbaz Sharif for approval.