ABDUL RASHEED AZAD

ISLAMABAD: The Ministry of Industries and Production in close collaboration with all the stakeholders including the business community has finalised a long-term industrial policy aiming at export-led GDP growth which will be presented to the federal cabinet for approval soon.

In an exclusive chat with Business Recorder, the Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, said that all the recommendations shared by the business community to introduce new industrial policy have been finalised as per the demand of the business community.

Khan said that the industrial policy will be for five year as per the demands of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and other trade bodies. He said that to finalise the industrial policy, the prime minister had constituted eight committees so that the industrial sector could be revived with a special focus on large scale manufacturing as well as small and medium enterprises.

The SAPM said that due to ongoing programme with the International Monetary Funds (IMF), the government this time failed to provide significant tax relief to the business community, but in the coming few years, the government will reduce tax rates, further bring down interest rate, gas/electricity tariffs for industrial sector will be made more rational. He said that all these critical steps are finalised as Pakistan has designed export-led GDP growth.

Responding to a question regarding high fertiliser prices in the country, Khan said that Pakistan over the past few years has experienced very serious time, owing to high input costs and demand supply issues, the commodity prices in past years escalated but now the government has ensured surplus stocks of the commodity, therefore, the prices are stable which in the coming months will witness a decline.

Khan asserted that the government’s unwavering commitment will revolutionise the manufacturing sector in the coming few years, unveiling a game-changing industrial policy poised to propel the sector to new heights. He revealed that a new industrial policy is on the horizon, designed to further catalyse the growth of the manufacturing sector.

While discussing the government’s budget priorities, SAPM Haroon Akhtar Khan emphasised that budget 2025 is poised to unlock the sector’s full potential, providing critical support to small businesses and entrepreneurs. Highlighting the need for industrial transformation, Haroon Akhtar Khan emphasised that enhancing confidence levels among stakeholders and increasing incentives are crucial to bringing about a revolution in the industrial sector. By fostering a supportive environment and providing targeted incentives, the government aims to stimulate growth, boost investor confidence and drive innovation, ultimately propelling the sector towards unprecedented heights, he added. He emphasised that the prime minister is personally overseeing FBR revenues to ensure their effective collection. Haroon also assured that government will closely monitor the role of FBR and NAB to prevent undue interference, with the aim of reviving confidence among businessmen and industrialists.

By striking a balance between regulatory oversight and business-friendly policies, the government seeks to create a conducive environment for economic growth and investment, he said by stressing the importance of sustained focus on manufacturing and exports to drive economic growth.

He emphasised that consistent efforts are necessary to keep the wheel of progress moving, ensuring that the country’s industrial sector remains competitive and thriving in the global market. He further announced that the government is set to end additional customs duties, a move aimed at levelling the playing field for export-oriented industries. By removing this extra burden, the government seeks to enhance the competitiveness of local exporters in the global market, fostering a more favourable trade environment, he concluded.

The SAPM further said that to safeguard the interests of the business community, the government is to introduce some amendments in the Securities and Exchange Commission of Pakistan (SECP).

He added that the homework on amendments to the SECP law has been completed, a new clause will be added, amendment to the law regarding the investigation of the financial monitoring unit are also under consideration, in the name of suspicious transactions, the matter is being confused by sending it to investigative agencies without investigation.

He said that the investigating agencies including National Accountability Bureau (NAB), Federal Investigation Agency (FIA) and other anti-corruption departments will have to seek permission from SECP before launching any investigation against any business entity or individual.

Khan said that if there is suspicion of terror financing and money laundering, then after investigation, it should be sent to the relevant agency. Talking about the remittances and other payment transfers through banking channels, the SAPM said such payments are already reaching the country through reliable and proper channels, so there should be no need to investigate the sources. However, illegal channels such as Hawala and Hundi must not be allowed.

He said that to promote and encourage investment in the country, the government is considering to waive off additional fines and surcharges on investment in industrial sector, but it will take a little time. He said that his ministry has finalised the industrial package to run closed industrial units in the country and increase business activities.

He said that for the first time in the country, the government has decided to introduce bankruptcy law. The purpose of the law is to enable the owners of closed industrial units to obtain loans from banks. Khan said that instead of auctioning bankrupt industrial units, the law will allow banks to give loans to such units, so, that they can restore themselves.