New industrial policy: Expert emphasizes cost and ease of business
Obviously the industries and manufacturing are in problem due to huge cost of energy, gas tariff hike, petroleum price hike and additional taxes.
The expected pivotal targets of upcoming industrial policy are: Development of Import substitution Industry; revival of sick industries, improve credit to SMEs and boosting exports. They are indeed magnificent said Ateeq.
The development of import substitution industry is compulsory in order to produce indigenously everything as made in Pakistan. The growing import includes chemical, raw material, palm oil, petroleum products, pulses, machinery, iron & steel and cotton. Pakistan import dependency is precarious and driving up the import bill.
The policy to revive the sick industry is brilliant, simply it needs guide lines from State Bank of Pakistan for resolution of debts and encouragement by banks to provide them loans. The revival of sick industries is not only service to industry but also massive contribution for the betterment of economy.
He added that within a context of high import tariffs, Pakistan Export performance and competitiveness has remained weak. Our exports have declined from over 15 pc of GDP, one of the lowest of the region. Except for 2/ 3 countries we are under trade deficit. Boosting exports is obligatory, we need an edge in global markets to avoid burden of foreign exchange in our country thus reducing balance of payment crisis.
Under the industrial policy we need to improve credit to SMEs.
The SMEs with a largest size of 82% of our total economy are said to be the main participant of economy by contributing 40% share in the GDP as a whole, including the main lot of manufacturers, producers, vendors, shopkeepers, traders, importers, exporters and middle man, etc. In our country and in past SMEs has been neglected, constantly, there has been problems with their limited access to finance.
The cost of credit was not only expensive but borrowing was as difficult as a 'hard nut to crack'. We have seen that banks have never preserved separately and allocated funds for their credit line and financing.
Lengthy procedures for registration, licensing and compliances were excessive bureaucratic approach was routine of the day thus under the industrial policy, it is quite encouraging that the SMEs will have relaxed access to finance.
Preparation of the Industrial Policy is highly appreciative and is in demand for assisting Industrialist and Manufacturers; unfortunately the share of Industrial sector in GDP has been reduced to 18pc from 26%. Most importantly for formulation of industrial policy consensus of opinion by the business community, industrialists are therefore requested.
Copyright Business Recorder, 2025
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