Punjab Industrial Policy Government Unveils New Incentives to Boost Investment and Manufacturing

The Punjab Industrial Policy received a major boost on Saturday as the provincial government announced new incentives for investors, including tax exemptions, faster approvals and attractive lease terms to encourage industrial growth across the province.

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Punjab Industries, Commerce and Investment Minister Shafay Hussain announced the measures while inaugurating the 11th Colour & Chem Expo 2026, a two-day international exhibition for the chemicals industry at the Lahore Expo Centre in Johar Town.

The minister said investors can establish industries in the industrial estates of Sheikhupura, Bhalwal and Rahim Yar Khan under the new policy. The government will offer a four-year lease package, issue no-objection certificates (NOCs) within 30 days, provide zero customs duty on imported machinery and exempt businesses from income tax for 10 years.

Hussain said Chinese companies have already started making significant investments in Punjab. He added that several manufacturing plants across different sectors will begin construction during the current financial year.

He said new industries will include pharmaceuticals, synthetic leather, food processing, lithium batteries, electric bikes and tiles. The government expects these projects to strengthen Punjab’s industrial base and create new employment opportunities.

The minister also announced that the government is preparing a dedicated policy for Pakistan’s chemicals industry to attract investment, support local manufacturers and improve the sector’s competitiveness.

Speaking about regional developments, Hussain said the conflict involving Iran had negatively affected Pakistan’s citrus exports. He also stressed the importance of accelerating work on the Iran-Pakistan gas pipeline project and said future declines in global oil prices would depend on lasting regional stability.

He reaffirmed the government’s commitment to promoting electric vehicles and electric bikes as part of its strategy to support sustainable transport during the global energy crisis.

Hussain revealed that Punjab’s first chip frame manufacturing plant, being developed by Vivo Mobiles, has reached 40% completion and is expected to begin production next year. He added that Chinese companies also plan to manufacture lithium batteries in Pakistan.

The minister said the Punjab government has approved funding to develop infrastructure at 24 small industrial estates. He added that around 70% of traders have benefited from the Asaan Tajir Scheme, while the government plans to introduce a new financing programme offering loans of up to Rs100 million to large-scale industrialists.

Expo organiser Rashidul Haq said the exhibition has brought together 350 local and international exhibitors, creating opportunities for business partnerships, investment and joint ventures in the chemicals industry.

Convener Abdul Rahim Chughtai urged the government to introduce more industry-friendly policies that reduce production costs, encourage local manufacturing of raw materials and improve the global competitiveness of Pakistan’s chemicals sector.

Lahore Chamber of Commerce and Industry President Faheemur Rehman Sehgal called for a reduction in the petroleum levy to lower operating costs for businesses.

FPCCI Senior Vice President Saqib Fayyaz Magoon said rising production costs continue to challenge businesses, adding that several multinational companies have reduced or ended their operations in Pakistan in recent months.

The 11th Colour & Chem Expo 2026 will continue until Sunday, bringing together industry leaders, manufacturers, investors and policymakers to discuss new technologies, market trends and investment opportunities.