KARACHI: The Pakistan Business Council (PBC) has expressed concern over the federal government’s approval of a new industrial policy without consulting key industrial stakeholders.
The policy, aimed at revitalising the manufacturing sector, was approved on Friday during a meeting of the Prime Minister’s Committee on Industrial Policy.
In a letter sent Saturday to Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, PBC CEO Ehsan Malik said the council had not been shown the final version of the policy and requested it be shared. He noted that the government had accepted the council’s longstanding recommendation to focus investment in sectors where Pakistan holds or can develop a comparative advantage.
Malik recalled that this approach was discussed during a recent meeting between the SAPM and the PBC at the council’s office, during which the council also offered support in shaping the policy. However, he said the PBC was not involved in the policy’s finalisation.
Citing press reports, Malik said the policy places emphasis on reviving sick industries and providing credit to small and medium enterprises. He said these measures could be useful if aligned with sectors identified as having a comparative advantage under the new policy.
He also welcomed the decision to separate fiscal policy from tax collection, calling it an important move toward growth-oriented policymaking. He said the goal of achieving a higher tax-to-GDP ratio should result from well-aligned fiscal policies, not from increasing taxes on already compliant segments.
Malik said the PBC represents nearly 100 major local and multinational companies, responsible for 40 percent of Pakistan’s exports and employing millions through their value chains. Many members operate in the manufacturing sector, and the council has carried out research through its “Make-in-Pakistan” initiative to support industrial and export development.
He also voiced disappointment over the council’s exclusion from most sub-committees formed to implement the ministry’s goals, noting that many nominated members are traders. Malik urged the SAPM to reconsider the committee composition to ensure wider representation from the industrial sector, especially from institutions engaged in policy research and manufacturing.
