Govt mulls tax, tariff reduction
Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan on Wednesday said that the government was planning to reduce industrial taxes and electricity tariffs.
Addressing a press conference, Khan said that macroeconomic stability had largely been achieved and focus of the government was on promoting micro, small and medium enterprises (MSMEs). He emphasised that SMEs were the backbone of Pakistan's economy, playing a critical role in job creation, production and exports.
"The government has placed SMEs at the centre of national development, with a clear priority to ensure that economic policies benefit every district and small business across the country," he said.
The PM aide highlighted that the capital value of small enterprises ranged between Rs30 million and Rs150 million, adding "the core strength of our economy is micro enterprises and we need to mainstream them."
Highlighting the major challenges faced by MSMEs, he cited the lack of financing as banks refused to give loans and the lack of information about marketing their products. Khan pointed out that the Small and Medium Enterprises Development Authority (Smeda) had been reorganised and its new head had also been appointed. Apart from that, consultations with SME clusters nationwide have been completed and a comprehensive SME policy has been formulated with representation from all provinces and regions.
"At the same time, inclusivity is needed as women entrepreneurs are an integral part of the government's economic strategy," he said. "Practical work has already begun on the National Women Entrepreneurship Policy to ensure access to funding, training and markets for women-led businesses." He emphasised that women's empowerment provides guarantee for Pakistan's economic strength.
The special assistant announced that the "Made-in-Pakistan SME Cluster Showcase Expo 2026" would be held from January 24 to 26 at the Expo Centre, Lahore. He described the event as Pakistan's national platform for small businesses, featuring over 30 SME cluster pavilions and participation from 174 representatives. Special pavilions are also being set up for women entrepreneurs and micro-businesses.
Khan stated that banks and financial institutions would participate in the expo, providing SMEs with direct access to finance. International delegates from Azerbaijan, Kenya and Malaysia will also attend, enhancing global exposure for Pakistani SMEs. "As SMEs become strong, Pakistan will be economically strong too," he remarked.