Special Assistant to Prime Minister (SAPM) for Industries and Production Haroon Akhtar Khan said on Saturday that revival of sick industrial units is top priority of the government.
Talking to business community here at Lahore Chamber of Commerce and Industry (LCCI), he said, no department should take action against business community without consulting the chambers of commerce, saying that restoring business confidence is essential for economic growth.
He said that business community must be given freedom to contribute to national development through industrialization and investment. He disclosed that the government is introducing a bankruptcy law to facilitate the businesses.
LCCI President Mian Abuzar Shad, Vice President Shahid Nazir Chaudhry, former president Muhammad Ali Mian and former senior vice president Ali Hassam Asghar also spoke on the occasion while members of the Executive Committee were present.
He said that effective measures are being put in place to improve and simplify the regulatory processes, enabling the industries to operate efficiently.
He expressed pride in the fact that both Prime Minister Shehbaz Sharif and Deputy Prime Minister Muhammad Ishaq Dar had previously served as LCCI Presidents, further strengthening the bond between the government and the business community.
Haroon Akhtar Khan emphasized the importance of policy continuity, citing China as an example of a country that has achieved sustainable development through consistent economic policies.
The SAPM said that markup rate has declined from 22 percent to 12 percent and the stock market is reaching new heights, however, more focus is needed on GDP growth and industrialization. He reassured that the government is making substantial efforts in this regard. The government has reduced power rates and expressed optimism that the markup rate would also decrease further.
He stated that Prime Minister Shehbaz Sharif is keen to encourage local investors to attract foreign investments. He proposed an incentive scheme for overseas Pakistanis to repatriate their declared assets worth approximately US $ 30 billion.
LCCI President Mian Abuzar Shad described recent meetings with the Prime Minister as highly productive. He hoped that electricity prices would be brought down to Rs. 30 per unit, while the markup rate is expected to decrease by another two percent. He raised concerns about the rising cost of doing business due to increasing input cost, along with MDI charges on closed industrial units. He said that while the policy rate has been reduced to 12 percent, it remains high compared to regional competitors and should be brought to a single-digit range. He also highlighted high prices of land in industrial estates, which have reached Rs. 500 million per acre, making industrial expansion difficult.
Mian Abuzar Shad proposed several recommendations, including complete vehicle assembly in Pakistan, development of local raw material industries such as metals, alloys, steel, petrochemicals, minerals and textiles, with minimal duties on these materials. He stressed the importance of a cascading tariff structure to prevent industrial disruptions and recommended establishing Export Promotion Sectoral Councils under the Ministry of Industries, led by the private sector. He also emphasized the urgent need for new Special Economic Zones (SEZs) and Export Processing Zones (EPZs) in Lahore, as existing industrial estates like Sundar and Quaid-i-Azam Industrial Estates have reached full capacity. He proposed the development of a 20-year Industrial Master Plan to set up industrial estates in every district of Pakistan.
Furthermore, he called for initiatives to promote electric vehicles (EVs), including special loan schemes, EV charging stations and mandating EVs in government fleet purchases. He suggested prioritizing local solar panel production through joint ventures with major Chinese companies and emphasized the need for increased financing and technology access for SMEs. He said that SMEs in Pakistan receive less than six percent of private sector financing, despite 65 percent of them being based in Punjab and called for collateral-free, low-interest financing to support their technological advancement.
LCCI Vice President Shahid Nazir Chaudhry stressed the importance of regularizing industrial clusters and eliminating excessive conversion fees. He said that many industrial clusters around Lahore are not officially recognized and should be regularized without commercialization fees. He also urged the government to expedite infrastructure development in Quaid-i-Azam Business Park to support industrial growth.
Former LCCI President Muhammad Ali Mian emphasized that LCCI budget proposals should be considered and incorporated into the federal budget. Former Senior Vice President Ali Hassam Asghar urged the government to give due attention to the rice sector, which holds significant export potential.