Govt consults industry on reports of 193 industrial units shutting down in Faisalabad

The Board of Investment on Tuesday held consultations with business leaders and industry bodies to assess reports of industrial closures in Faisalabad, following notice taken by Prime Minister Shehbaz Sharif.

The meeting, chaired by Federal Minister for Board of Investment Qaiser Ahmed Sheikh, brought together representatives of major chambers of commerce and the All Pakistan Textile Mills Association (Aptma) to identify causes of closures and propose policy responses, according to an official statement.

Participants said Faisalabad’s industrial sector has seen widespread shutdowns in recent months. The Faisalabad Chamber of Commerce and Industry informed the forum that around 193 industrial units have closed and said detailed data would be shared with the BOI. Concerns raised included a tax incidence estimated at 55–60%, electricity-related issues, and rising input costs.

APTMA representatives said high electricity tariffs, elevated interest rates, costly gas, and tax pressures have increased the cost of doing business compared with regional peers, adding that the tax burden continues to fall on existing taxpayers rather than being broadened.

Business leaders also highlighted long-pending refund issues, non-tariff barriers, freight costs, the final tax regime, and the need for long-term export financing. Suggestions included investment incentives through structured brackets, assigning export targets to trade attachés, a single-point sales tax system, and learning from regional policy models.

The minister said the BOI is pursuing regulatory reforms and deregulation, including initiatives under the Asaan Karobar Act and the BOI-led Business Facilitation Center single window, to ease operations and investor facilitation. He also outlined incentives under the Special Economic Zones policy, including tax holidays, duty-free import of machinery, and land availability near Port Qasim for export-oriented industrial clusters.

Officials requested chambers and associations to submit issues and proposals in writing to enable structured follow-up with the Prime Minister’s Office.

Concluding the meeting, the minister said the government is focused on shifting toward export-led growth and that the BOI would continue coordinating with relevant ministries and the private sector to support industry and investment.