Islamabad, July 5, 2025: In a significant development, the government has approved a 10-year long-term industrial policy, marking a major achievement for the business and industrial sectors in Pakistan.
The Prime Minister of Pakistan directed the Ministry of Industries and Production to review and analyse the existing industrial framework, highlighting that the industrial sector’s share in GDP dropped from 26 percent in 1996 to 18 percent in 2025.
Acting on the premier’s instructions, the Ministry of Industries and Production formed eight influential sub-committees to examine ways to restructure the industrial landscape. On Friday, these committees submitted their revival suggestions to the Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, during a senior-level session.
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According to the recommendations submitted by the committees formed under the prime minister’s directives, the policy will span 10 years, with a review of its progress every 18 months in collaboration with stakeholders.
The government will prioritise easier access to financing for small and medium-sized enterprises (SMEs) and struggling businesses.
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Special changes in various laws will be introduced to create an investor-friendly climate, ensure investment security, and encourage local production. Inactive industrial units will be rehabilitated, and banks will be urged to extend loans to such ventures.
During the meeting, committee members concluded their reviews of the eight sub-committees’ reports, signalling the start of the policy’s execution phase.
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Haroon Akhtar Khan underscored the sharp decline in the industrial sector’s GDP contribution from 26 percent in 1996 to 18 percent in 2025, calling for immediate action. He highlighted the need to raise exports and develop import alternatives to strengthen the economy.
Proposals included fresh State Bank guidelines for reviving struggling industries and resolving debts. Amendments to the Corporate Rehabilitation Act, 2018, were suggested, alongside a reduction in corporate tax from 29 percent to 26 percent over three years. Moreover, law revisions to boost manufacturing are suggested like amendments to SECP act, income tax ordinance, AML laws.
Ten more implementation sub-committees were established, with orders to produce visible outcomes within a week.
