Punjab plans 30-year industrial land leases

LAHORE:

The Punjab government is planning to introduce a long-term industrial land lease policy providing performance-based leases of 30-year terms or longer, aimed at boosting industrial activity across the province, a senior official said on Thursday.

Secretary Industries, Investment and Commerce Punjab, Muhammad Umar Masood, said the proposed framework would apply not only to SEZs but also to other industrial estates, with a formal announcement expected before Ramazan.

Lahore Chamber of Commerce and Industry (LCCI) President Faheemur Rehman Saigol said the industrial sector was under severe pressure, noting that industry's share in GDP had fallen to 18% while large-scale manufacturing recorded negative growth of 1.5% in fiscal year 2024-25. He said rising costs, including high policy rates, taxation and energy prices, were driving capital flight.

Saigol urged federal action to abolish the Sindh Infrastructure Development Cess and highlighted a 40% decline in food exports, calling for incentives for agro-based industries. He also sought support for environmental compliance, SME financing, lower land prices and a long-term lease policy. Masood said stronger coordination with chambers and data-based dialogue were needed, adding that governance, infrastructure development and public-private partnerships were priorities. He said a one-window system would be introduced for environmental compliance and urged better use.