Minister for Industries and Production Rana Tanveer Hussain unveiled the National Industrial Policy at the Multilateral Industrial Policy Forum organized by the United Nations Industrial Development Organization (UNIDO) in Riyadh, with the objective of creating an enabling environment for local industry growth and attracting foreign investment.
Addressing the UNIDO Multilateral Industrial Policy Forum, the minister said the policy would be finalized by October 2024, according to a press release issued by the Ministry of Industries.
The policy focuses on green energy initiatives, women’s empowerment, and regional cooperation, aligning with Pakistan’s Vision 2025 and Sustainable Development Goals.
He said a comprehensive and integrated approach is being adopted to effectively align the National Industrial Policies with national and regional Sustainable Development Goals (SDGs) for maximum impact.
The strategies used include prioritizing high-impact sectors, regional collaboration, inclusive stakeholder engagement, incentivizing sustainable practices, and strengthening governance and policy coherence.
The policy will focus on various sectors such as steel, cement, mining, petrochemicals and chemicals, fertilizer, heavy mechanical, non-ferrous metals, plastics and composites, fisheries, transport, and logistics.
It also covers value-added/GVG sectors such as auto parts, tractors, parts & accessories of office machines, travel accessories, furniture, footwear, synthetic & non-traditional textiles and garments, food processing, surgical and medical devices, electronics, and pharmaceuticals.
Rana Tanveer said that the formulation of the green energy initiative is also a prominent aspect of the policy.
The minister highlighted that currently, the transport sector accounts for over 75% of total commercial oil consumption. Pakistan is currently using over 65% of its foreign exchange reserves on fuel imports.
To mitigate this situation, decarbonization in the transport sector and the adoption of electric vehicles (EVs) such as electric two and three-wheelers, decentralized power storage, batteries, solar cells, and charging stations, etc., are being adopted in Pakistan.
Currently, forty-eight companies have been issued manufacturing licenses by the Ministry of Industries and Production enabling them to produce two/three-wheeler EVs in Pakistan.
The solar energy sector is growing fast due to market demand, and there are about nine solar panel assemblers operating in the country. Pakistan is committed to renewable energy, with solar PV projected to reach 30% of its energy mix by 2030.
This transition to clean energy would also help reduce GHG and air pollutant emissions, dependency on imported fossil fuels, and could also create jobs in the automotive industry in the medium term.
The Policy would also encompass developing financial incentives, such as tax breaks, subsidies, or grants, to encourage industries to adopt sustainable practices, contributing to goals like reducing carbon emissions or improving resource efficiency.
This policy is being designed to uplift key industrial sectors in a focused and sustainable manner, ensuring that industries are better equipped to meet both current and future challenges.
The industrial policy also envisages measures for women’s empowerment, which include ensuring implementation of the “Banking on Equality” Policy of the State Bank of Pakistan (SBP), simplification of taxation procedures & reduced tax rates for women-owned SMEs, and developing a one-window virtual facility for women entrepreneurs for enhanced access to information.
The measures also include providing a women-friendly work environment through establishing women business centers, display facilities, emporiums, developing specialized women business facilitation programs in areas such as starting and managing a business, accounting & book-keeping, fulfilling tax liabilities, marketing & digitization, and developing linkages with domestic & international markets through aggregation models.
He said that the National Industrial Policy under formulation will be aligned with regional initiatives to enhance trade and economic cooperation as per Vision 2025.
The minister said Saudi Arabia has strengthened its economic ties with Pakistan through initiatives such as the Saudi-Pakistan Supreme Coordination Council (SPSCC), which focuses on trade, infrastructure, and energy.
He added that investments in the Gwadar Oil Refinery and renewable energy projects aim to enhance Pakistan’s industrial capacity and diversify its energy mix.
These efforts foster long-term economic cooperation, aligning with Pakistan’s broader regional trade goals.
