Effective steps afoot for industrial development, enhancing export capacity

LAHORE, Jun 16 (APP): Economic transformation and poverty alleviation are interconnected, and sustainable employment, growing investment, and an increase in exports and economic opportunities are the most effective means to improve the standard of living of the public and reduce poverty. Punjab government is introducing several initiatives in the industrial sector.

In his budget speech on the floor of Punjab Assembly here Tuesday, Punjab Finance Minister Mujtaba Shuja-ur-Rehman said that in the coming fiscal year (2026-27), Plug & Play Factory Parks will be established in the garment sector for value addition and increasing exports at a cost of Rs. 13.30 billion, paving the way for the creation of new Garment Units, 20,000 new jobs, and over USD 300 million in additional annual exports. He added that a Water Treatment Plant Kasur, Waste Testing and Common Facility Centre will be established in the Footwear and leather sectors at a cost of Rs. 4.60 billion, through which more than 100 tanneries will be able to operate according to international standards, creating an additional export capacity of USD 300 million. Similarly, a Bio-Equivalence Lab will be established in the Pharmaceutical sector at a cost of Rs. 2 billion.

To make business activities easy, transparent, and competitive for the promotion of the economy, the government is introducing several reforms. In this regard, under the business-friendly policy of the Chief Minister of Punjab, a Zero Time to Start-up policy is being implemented, and a Unified Inspection Regime is being introduced through which 15 different departments’ inspection systems will be brought under One Window. This initiative will reduce compliance costs for business institutions by 40 to 60 percent, bring ease of doing business, and eliminate unnecessary hurdles for export industries.

Similarly, a Land Lease Policy is being introduced for the promotion of investment in SEZs, under which land lease rates will be fixed at Rs. 250,000 per acre monthly. This policy will provide up to 40 percent incentives for environment-friendly production, increases in exports, and investment in less-developed areas. As a result of this policy, an investment of approximately Rs. 1,995 billion is expected, which will bring significant growth in industrial progression, employment, and economic opportunities.

For the development of the Sports Goods sector, a certification program and testing facilities are being introduced according to ICC, FIFA, and ITF standards at a cost of Rs. 5.50 billion, from which more than 1,000 export-oriented business institutions will benefit, and an additional export value of USD100 million is expected. Upgrading and financial assistance will be provided to the Hand Tools sector at a cost of Rs. 4 billion, alongside establishing an Arts & Crafts Village, which will create 2,500 new jobs and increase the export of value-added products. The Ceramics sector will be equipped with modern kilns and testing facilities to upgrade the Gujrat Institute, while the Fans sector will see the establishment of a Regulated Sambrial Material Testing Lab at a cost of Rs. 700 million, making access to European and other global markets easier.

The Provincial Finance Minister shared that under the Industrial Estates Development Programme, Rs. 35 billion will be allocated to strengthen industrial foundations and upgrade industrial estates in Faisalabad, Vehari, Rahim Yar Khan, and Bahawalpur, where more than 1,000 industrial units will be developed. This will bring private investment of Rs. 80 billion and create 40,000 new jobs. Furthermore, 100 percent financial assistance for machinery and basic infrastructure will be provided through the Cluster Infrastructure Development Programme at a cost of Rs. 20 billion.

To align with sustainable industrial growth and environmental standards for access to international markets, a Combined Effluent Treatment Plant Package will be introduced in the coming fiscal year at a cost of Rs. 25 billion. Under this initiative, four industrial estates will be provided a capacity of 70 MGD for wastewater treatment.

To achieve maximum economic benefits from the mineral resources of the province, Rs. 1.50 billion has been allocated for the CM Punjab Value Addition Financing for Pink Salt programme. This initiative will provide financial assistance to 200 mineral institutions related to pink salt.

During the current fiscal year, initiatives for promoting business activities, investment, and employment are underway at a cost of Rs. 47.70 billion through the CM Punjab Asaan, CM Punjab Asaan Karobar Card, CM Punjab Asaan Karobar Export Finance, and Karobar Finance schemes, under which interest-free loans have been provided to more than 110,000 individuals with an amount of Rs. 125 billion.

Similarly, financial assistance is being provided to industrial projects under Sanati Taraqi & Export Promotion (STEP) financing at a cost of Rs. 193 billion, which will mobilize Rs. 300 billion in private sector capital investment, generating 29,400 direct jobs and an additional USD 560 million in export capacity. Under this programme, Subsidised Loans worth up to Rs. 5 billion will be provided to small and medium enterprise business sectors, with a repayment period of 10 years.

Meanwhile, E-Commerce Readiness and E-Biz are being executed at a cost of Rs. 700 million to promote digital trade, establish E-Commerce Hubs, and connect businesses with global markets. As a result of this project, digital tax recoveries of Rs. 6.90 billion have been made possible so far. Under E-Commerce, online trade and export opportunities will be provided to 2000 business centers, and an annual increase of USD 2.45 million in exports is expected through this initiative.

Financial assistance is being provided under the STEP programme at a cost of Rs. 30 billion for the development of the Horticulture and Floriculture sectors, which will promote the Cold Chain and supply chain delivery system, benefiting more than 100 floriculture institutions.

Quaid-i-Azam Business Park Sheikhupura is being functionalized at a cost of Rs. 4 billion, where modern facilities will be available to the textile and garment industry through the establishment of a Garment City. The construction plan for the Allama Iqbal Industrial City Faisalabad at a cost of Rs. 6 billion is included in the next fiscal year.

Moving forward with this series, under the Economic Transformation of Punjab, a total capital investment of Rs. 783.80 billion is expected for an economy based on industrial growth over the next three years, which includes Rs. 403.80 billion of government capital investment and Rs. 380 billion of private sector capital investment. This investment is expected to create new employment opportunities, increase income, boost exports, and establish the economy of Punjab on a stronger and more sustainable foundation.