LAHORE: Special Assistant to the Prime Minister (SAPM) for Industry and Production, Haroon Akhtar Khan, stated that the government is aiming to reduce its role in the economy and allow experts to drive the development of various sectors.
He made these remarks during a consultative session on the budget at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) regional office, which was attended by industrialists, including FPCCI Senior Vice President Saqib Fayyaz Maggon, Regional Chairman Zain Iftikhar, and Vice President Zaki Ijaz.
SAPM Khan emphasised that every year, proposals from different sectors are incorporated into the national budget. He highlighted the government’s focus on small and medium enterprises (SMEs), recognising them as the “lifeline of the industry.”
According to Khan, industrial growth would contribute to increased tax collection and strengthen the overall economy. He also mentioned that efforts are being made to connect SMEs to the export market, with the government providing loans to unemployed youth through the Small and Medium Enterprises Development Authority (SMEDA).
Khan praised the government’s economic initiatives, stating that Pakistani businesspersons have significant potential and that the government is committed to supporting them. He underscored that industrialisation is essential for a strong economy and reiterated the government’s commitment to both SME development and large-scale industry growth.
He noted that the current fiscal year’s budget was designed to steer the economy back onto the development track, and the upcoming budget would focus on fostering growth, now that the country has emerged from economic challenges.
Efforts are also underway to provide tax relief to both salaried individuals and businesses. Additionally, Khan highlighted the government’s push to export key agricultural products such as mangoes, onions, and strawberries, and the special focus on cultivating oilseeds in mountainous regions. He also mentioned the export potential of halal meat and milk and emphasised efforts to produce biogas from cow dung, which would help reduce the oil import bill.
On the agricultural front, Khan stressed the need for improving crop yields to meet international standards and pointed out ongoing efforts to deregulate the agriculture sector. Addressing the issue of water, he noted that while Pakistan has abundant water resources, better usage practices are needed.
He also mentioned that the government is working on initiatives for crop insurance and called for the establishment of more tractor manufacturing units in the country.
Khan reaffirmed that the government is committed to increasing exports and creating an ideal environment for exporters. He also announced plans to introduce a new vehicle policy for two-, three-, and four-wheelers, including tax exemptions for electric vehicles.
Additionally, the government is focused on reviving closed industrial units, with Prime Minister Shehbaz Sharif personally overseeing efforts to streamline matters related to the Federal Board of Revenue.
FPCCI Senior Vice President Saqib Fayyaz Maggon, speaking at the session, stressed the importance of pre-budget proposals, which have been increasingly adopted in recent years. He called for a long-term industrial policy, as industries require sustained planning for long-term growth.
Maggon advocated for political consensus on economic policies, asserting that changes in government should not result in shifts in economic or industrial direction. He also raised concerns about the Export Financing Scheme (EFS), which he claimed has caused problems for the local industry, including the closure of half of the ginning and spinning sector.
He called for the withdrawal of the 18% Sales Tax on the local industry under the EFS and urged a review of energy prices to support industrial recovery.
