The Punjab government has introduced a new industrial policy for free economic zones. The initiative offers tax incentives, easier approvals, and investor-friendly measures to accelerate industrial growth across the province.
New Policy Offers Tax Breaks And Faster Approvals
Punjab Industries, Commerce and Investment Minister Shafay Hussain announced the policy on Saturday. He addressed reporters during the inauguration of the 11th Colour and Chem Expo 2026 in Lahore.
Under the policy, investors can establish industries in Sheikhupura, Bhalwal, and Rahim Yar Khan industrial estates. Moreover, the government will offer a four-year lease plan to attract local and foreign investors.
The policy also provides zero import duty on industrial machinery. Additionally, investors will receive a 10-year exemption from income tax.
Furthermore, authorities have introduced a 30-day deadline for issuing no-objection certificates. The government expects faster approvals to encourage quicker industrial development.
Chinese Investment Expected To Boost Manufacturing
Following the inauguration, the minister visited domestic and international exhibition stalls showcasing modern technologies and chemical products. He said several Chinese companies have already started investing in Punjab.
According to Hussain, manufacturers seek lower labour costs while expanding production in Pakistan. Consequently, new plants will open this financial year in pharmaceuticals, synthetic leather, food processing, lithium batteries, electric bikes, and tile manufacturing.
The minister also announced a dedicated chemicals industry policy to strengthen the sector and attract additional investment. Meanwhile, he said Pakistan’s citrus industry suffered because of the Iran conflict.
He urged faster progress on the Iran-Pakistan gas pipeline and linked future oil price reductions to regional stability. Additionally, he reaffirmed government support for electric vehicles and electric bikes.
Hussain revealed the country’s first chip frame manufacturing plant, being built by Vivo Mobiles, should begin production next year.
