Islamabad: The government is finalising Pakistan’s first-ever Industrial Policy, which aims to modernise the country’s manufacturing base, attract offshore investments, and strengthen investor protection. However, key measures under the proposed policy can only move forward after approval from the International Monetary Fund (IMF).
According to official sources, the policy proposes the creation of a National Land Bank, reforms in Special Economic Zones (SEZs) and Export Processing Zones (EPZs), and a framework to facilitate the repatriation of offshore capital for investment by overseas Pakistanis. The government intends to ensure that the framework remains transparent and compliant with IMF and Financial Action Task Force (FATF) guidelines.
The proposed plan includes issuing Industrial Bonds to channel long-term capital into industrial clusters and infrastructure projects, while amendments to the Income Tax Ordinance 2001 and the Protection of Economic Reforms Act 1992 are under consideration to support the initiative.
The new policy also seeks to reform insolvency and restructuring laws to help viable businesses recover rather than shut down. Amendments to the Corporate Rehabilitation Act 2018 and Corporate Restructuring Act 2016 are being considered to provide companies—especially small and medium-sized enterprises (SMEs)—with protection against liquidation during restructuring and to align Pakistan’s insolvency framework with international standards.
Investor protection is another key element of the policy. The government plans to strengthen the Securities and Exchange Commission of Pakistan (SECP) by amending the SECP Act 1997 to reinforce its statutory autonomy and require prior approval for law enforcement actions within its regulatory scope.
With the support of the Special Investment Facilitation Council (SIFC), the government also aims to consolidate industrial land across the country under a single platform. The proposed National Land Bank will designate these areas as industrial estates and offer long-term, flexible land-lease options to manufacturers.
Additionally, the policy emphasises digitising One-Stop Shops (OSSs) in SEZs to address investor complaints regarding delays in land allotment, utility connections, and regulatory approvals. The government is also working to harmonise zoning laws across provinces through the Council of Common Interests (CCI) and to improve connectivity by constructing link roads between industrial parks and major motorways.
Officials said the policy is being shaped to attract both local and foreign investment and to restore industrial competitiveness. Once cleared by the IMF, the government plans to unveil the Industrial Policy as part of a broader push to revitalise the manufacturing sector and support sustainable economic growth.
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