ISLAMABAD: The federal government is preparing to unveil Pakistan’s first comprehensive Industrial Policy, a landmark initiative aimed at reshaping the country’s investment and manufacturing landscape. Central to the plan is the creation of a National Land Bank and a framework to encourage overseas Pakistanis to reinvest offshore capital back into the domestic economy.
IMF Approval as a Key Condition
Officials have clarified that these measures will only move forward once the International Monetary Fund (IMF) grants approval. The reinvestment framework under discussion would allow both overseas and local investors to legally channel offshore funds into Pakistan, provided the capital does not originate from jurisdictions listed on the Financial Action Task Force (FATF) grey or black lists. The proposal stresses transparency and insists the scheme must remain distinct from past amnesty programmes. One option being considered is the issuance of Industrial Bonds, designed to finance industrial clusters and infrastructure projects while offering investors long‑term security and liquidity. Implementation would require amendments to the Income Tax Ordinance 2001 and the Protection of Economic Reforms Act 1992, according to official sources.
Modernising Insolvency Laws
The draft policy also seeks to modernise Pakistan’s insolvency laws. By updating the Corporate Rehabilitation Act 2018 and the Corporate Restructuring Act 2016, the government aims to provide struggling but viable businesses with breathing space to reorganise. Proposed reforms include legal protections against creditor actions during restructuring, statutory moratoriums aligned with international insolvency standards, and extended eligibility for small and medium‑sized enterprises (SMEs). These changes are intended to reduce risks for creditors while giving firms a chance to recover rather than face immediate liquidation.
Investor Confidence and Legal Safeguards
Investor confidence is another priority. The policy promises safeguards against retrospective fiscal measures, protection from arbitrary Suspicious Transaction Reports (STRs), and a secure legal environment for both domestic and foreign investors. Amendments to the Securities and Exchange Commission of Pakistan (SECP) Act 1997 are planned to reinforce the regulator’s autonomy and ensure law enforcement agencies operate within its jurisdiction only with SECP approval.
National Land Bank and Industrial Estates
With support from the Special Investment Facilitation Council (SIFC), the government intends to consolidate land into a national bank, designate industrial estates, and offer long‑term lease options for manufacturers. Special Economic Zones (SEZs) and Export Processing Zones (EPZs) are also slated for reform, with Pakistan Steel Mills land earmarked for development. Authorities plan to evaluate zone performance, address operational bottlenecks, and revise occupation policies to maximise export potential.
Streamlining One‑Stop Shops
The policy acknowledges persistent challenges in investor facilitation. One‑Stop Shops (OSSs) within SEZs and industrial estates have often failed to deliver, with delays in land allotment, utility connections, and regulatory approvals caused by overlapping federal and provincial responsibilities. Building on the success of the Pakistan Single Window, the government proposes digitalising OSSs and integrating services across agencies to streamline processes.
Harmonising Zoning Laws and Connectivity
To further strengthen industrial growth, the policy calls for harmonising zoning laws across major cities through the Council of Common Interests (CCI) and the SIFC. Provincial legislation would be required to establish customised land‑leasing frameworks tailored to industry needs and local dynamics. Connectivity is also a priority, with plans to improve link roads between industrial parks and national motorways to ensure efficient transport and logistics.
A Turning Point for Pakistan’s Economy
If implemented, Pakistan’s first Industrial Policy could mark a turning point for the country’s economy, offering a structured path for investment, industrial expansion, and long‑term competitiveness in global markets.
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