Business Community Responds to New Industrial Policy

The business sector has expressed its approval of the government’s announcement regarding a new industrial policy aimed at revitalizing the nation’s declining manufacturing base.

However, they cautioned that without prompt, comprehensive, and realistic actions, the manufacturing sector, already struggling, risks irreversible damage.

Business leaders stated that the announcement suggests an awareness of the present difficulties; however, industry participants are on the point of giving up.

According to traders, rising energy expenses, an unstable regulatory landscape, insecurity, and a harsh taxation system have made operations untenable for numerous producers, particularly small and medium-sized businesses. Fazal Moqeem Khan, President of the Sarhad Chamber of Commerce and Industry (SCCI), stated, “Our plants are closing, our equipment is becoming silent, and our people are being dismissed. We risk losing hope if this continues, not just industrial production.”

He voiced profound worry about the steady decline in the industrial sector’s contribution to GDP, from 26% in 1996 to only 18% in 2025, calling it a sign of lost employment, shuttered enterprises, and diminishing confidence in Pakistan’s economic prospects.

Moqeem welcomed the proposed measures, such as fiscal incentives, legal changes, and industrial rehabilitation, but emphasized that these efforts may once again be restricted to theory unless there is direct and substantial engagement with stakeholders, including regional chambers. He added, “The regulations developed in Islamabad must reflect the realities on the ground in Faisalabad, Karachi, Peshawar, and Quetta. Decisions made without us will not benefit us.”

Abdul Jalil Jan, the chamber’s senior vice president, stressed that genuine industrial recovery demands strong political resolve, structural reforms, and a supportive environment that rewards rather than punishes business.

Shehryar Khan, the chamber’s vice president, asked the government to give priority to openness, predictability, and regional inclusion while implementing this policy.

The SCCI president reaffirmed its dedication and pledged complete cooperation in any sincere initiatives aimed at rescuing the nation’s industrial sector, but cautioned that time is running out. “We are not pleading for favors; we are demanding our right to exist, contribute, and develop. The economy cannot prosper if its industries are collapsing.”