Punjab eyes industrial expansion

Minister highlights investment drive, but costs and red tape raise concerns

LAHORE:

The Punjab government has accelerated industrialisation in the province under a focused strategy to attract both local and foreign investors, Provincial Minister for Industry and Commerce Chaudhry Shafay Hussain said while addressing industrialists at a dialogue facilitated by the Punjab Industrial Estates Development and Management Company (PIEDMC).

He emphasised that promoting industry is one of his top priorities, assuring investors that a growing industrial base will generate more employment and boost economic activity across regions.

The minister highlighted that Punjab has become a major destination for new industrial units due to its improving infrastructure, fertile land, skilled workforce and expanding markets.

He stressed that Punjab's economy already contributes more than half of Pakistan's gross domestic product (GDP), making it the economic backbone of the country. By speeding up industrial development, the government is positioning Punjab to further enhance its share in the national economy.

Discussing infrastructure plans, the minister informed participants that purpose-built facilities are being developed in various industrial estates, including a community centre for foreign investors and the opening of several bank branches to support financial access.

He said a state-of-the-art expo centre in Faisalabad is under construction to promote trade exhibitions and industrial showcasing. He also announced that textile clusters such as the garment city in the Quaid-e-Azam Business Park are attracting technology transfer and modern textile operations. He revealed that large scale manufacturing units, including a major mobile phone factory, will begin production in the coming months.

The minister noted that improvement of industrial infrastructure in 23 small industrial estates across Punjab has been initiated, alongside new estate developments based on the demand of industries. He added that the federal government is working to bring down loan markup rates to single digits to ease financing issues for businesses.

Though the provincial minister painted a promising picture, some industrialists expressed serious concern over operational barriers. One industry representative, speaking anonymously, said the ground realities remain challenging despite government plans.

"We appreciate the government's initiatives, but industries are suffocating under red tape, slow bureaucratic procedures, rising energy prices, inflation and heavy taxation. These issues hurt local businesses and send alarming signals to foreign investors as well. Equal opportunities must be given to both local and international investors, otherwise, only one side will benefit and growth will be lopsided."

The industrialist stressed that predictable policies and transparent processes are essential to sustaining investor confidence. He warned that high production costs, particularly due to expensive electricity, gas and imported raw materials, are reducing competitiveness and discouraging expansion.

The minister acknowledged that industrial growth must come with reforms that make doing business easier. He reassured industrialists that ongoing measures aim to reduce regulatory hurdles and facilitate quicker processing through one-window services.

Punjab, with its industrial depth in textiles, engineering, pharmaceuticals, food processing, and light manufacturing, carries significant potential to attract regional and global value chains. The province has abundant agricultural output, a large labour market, and natural resources such as coal, rock salt, gypsum and silica, all of which position it for long-term industrial expansion.

The dialogue concluded with the minister reiterating that as Punjab accelerates industrial development, the key goals are employment generation, export expansion and diversified economic activity. However, the business community stressed that without lowering input costs, rationalising taxation and curbing bureaucratic delays, Punjab may struggle to convert its industrial potential into sustained growth.