Ahmed Khan Malik

Sindh’s industrialists have urged the federal government to immediately approve and implement the new 10-year National Industrial Policy. They warned that any further delay could accelerate the province’s economic decline, undermine investor confidence, and deepen unemployment.

Business leaders said that Sindh, which contributes the largest share of Pakistan’s industrial output, is struggling with rising costs, energy shortages, and outdated infrastructure, while competitors in other provinces are moving ahead with more progressive policies.

“The federal government must act without delay. Every day of uncertainty is costing Sindh industries millions and pushing investment out of the province,” Shaikh Muhammad Tehseen, President Federal B Area Association of Trade and Industry (FBATI), told Wealth Pakistan.

Pakistan’s manufacturing sector has seen a steep fall in its contribution to the economy, dropping from more than 25% of GDP in the mid-1990s to just 18% by 2025. Sindh’s key industries, including textiles, engineering, chemicals, and food processing, have been hit hardest by the downturn. Industrialists argue that the policy vacuum has worsened the situation. “If there is no predictable policy, investors will simply go elsewhere. Sindh cannot afford more capital flight,” said Tehseen.

The federal government finalised the industrial policy. Major reforms include a phased reduction of the corporate tax rate from 29% to 26%, legal changes to the SECP Act, Corporate Rehabilitation Act (2018), and Income Tax Ordinance to ease doing business, rescue and rehabilitation measures for sick and non-operational units through debt restructuring, incentives for SMEs, import substitution, export promotion, and localisation of manufacturing. The policy aims to reverse industrial decline and restore Pakistan’s competitiveness.

Industrialists in Sindh argue that the province faces disproportionate risks if the policy is delayed. Karachi alone is home to nearly 70% of Pakistan’s large-scale industries, employing hundreds of thousands of workers. “Without a strong policy framework, we are staring at mass unemployment and declining exports,” warned Muhammad Taqi, executive board member of the Korangi Association of Trade and Industry. “Sindh’s industries are not just provincial assets; they are national assets.”

He stressed that delays in adopting the policy may widen the regional imbalance. “Provinces that move faster in implementing incentives could attract more investment, leaving Sindh at a disadvantage.” He said that industry bodies have urged both Islamabad and the Sindh government to coordinate more closely. “They called for a provincial industrial strategy to complement the federal framework, especially on issues of land, energy supply, and infrastructure development.”

Taqi believed timely approval of the federal policy could help restore confidence in the manufacturing sector, create jobs, and strengthen Pakistan’s export base. “The industrial policy is ready. What we need now is political will,” he said, urging the government to pass it before more factories shut down.

Credit: INP-WealthPk