New policies to promote local manufacturing

Haroon Akhtar Khan, special assistant to the prime minister for industries and production, told the Lahore Chamber of Commerce and Industry that super tax on exporters has been fully scrapped. Non-export companies earning more than Rs500 million in profit will now pay 8 per cent super tax, down from 10 per cent. According to The Express Tribune, he framed these steps as part of a wider effort to expand manufacturing and cut reliance on imports.

Policy drafts are under way for battery energy storage, solar panels, mobile phone assembly, electric vehicles, farm machinery, fertiliser and automobiles. The auto framework is nearing completion and would give special incentives for electric vehicles of two, three and four wheels. Other measures aim to revive struggling industrial units, ease financing and shield businesses from unnecessary harassment.

Khan also said 6,400 acres of Pakistan Steel Mills land has moved to a lease model, letting investors pay an annual fee for 30 years instead of a large upfront sum, with an option to renew for another 30 years. The government is also pushing ahead with the sale of airports and power distribution firms, drawing interest from several investors. Faheem ur Rehman Saigol, president of the Lahore Chamber of Commerce and Industry, welcomed recent gains, including a Moody's rating upgrade, higher remittances, stronger reserves and a better stock market, and said curbs on enforcement such as bank account freezes could help restore business confidence.