New Industrial Policy Expected Soon

Islamabad: The unveiling of the new industrial policy is anticipated within the coming two to three weeks. This timeline follows the conclusion of discussions with relevant stakeholders, and their insights have been integrated into the policy draft.

Haroon Akhtar Khan, the Special Assistant to the Prime Minister on Industries and Production, is scheduled to reveal the finalized industrial policy this month. On Tuesday, he mentioned that the finishing touches are being applied to the draft.

It is worth noting that Prime Minister Shehbaz Sharif previously established a committee dedicated to the National Industrial Policy. According to its Terms of Reference, the committee is tasked with formulating the National Industrial Policy while considering the Memorandum of Economic and Financial Policies (MEFP) agreed upon with the IMF. The committee was also mandated to foster consensus.

The Minister for Finance and Revenue serves as the convener of this committee, with the secretary of the Finance Division, the secretary of Industries, and the secretary of Commerce acting as members. The committee has the authority to include additional members to broaden the scope of discussions.

On September 8, the Minister of Finance and Revenue appointed the chairman of the Federal Board of Revenue, the secretary of the Power Division, and the deputy governor (Banking &FMRM) of the State Bank of Pakistan as members of the committee responsible for the proposed National Industrial Policy.

Furthermore, three working groups have been formed to finalize their contributions within a week and present them to the Committee by September 15, 2025. Working group-1 comprises the secretary of the Industries and Production Division, the secretary of the Power Division, and AFS (CF) from the Finance Division. The second working group includes the secretary of the Industries and Production Division, the Chairman of the FBR, and AFS (Budget) from the Finance Division. Working group 3 consists of the secretary of the Industries and Production Division, the Deputy Governor (Banking &FMRM) of the SBP, and AFS (IF/Inv) from the Finance Division.

The National Industrial Policy document proposes measures such as lowering power tariffs, encouraging green energy adoption, improving the transmission and distribution network, and ensuring sustained growth within the industrial sector.

According to the SAPM, the National Industrial Policy is poised to stimulate industrial expansion and increase exports. He highlighted that the policy was developed through consultations with both public and private sector participants, providing a comprehensive framework to tackle critical industrial challenges.

The policy encompasses the revitalization of struggling industrial entities, enhanced access to financing, measures to prevent unwarranted interference by government bodies, and revisions to bankruptcy regulations. He further stated that a National Industrial Revival Commission would be created to monitor implementation and offer a mechanism for resolving grievances.

To attract investors and build confidence, the SAPM emphasized the importance of contract enforcement. He also mentioned that, drawing inspiration from the Chinese model, one-stop service centers will be established in Special Economic Zones (SEZs) to simplify industrial procedures.