Punjab to unveil long-term industrial land lease policy before Ramadan

2026-01-29 - 16:52

Secretary Industries, Investment and Commerce, Umar Masood, said that the Punjab government will introduce a long-term industrial land lease policy to promote industrial growth. Under this policy, industrial units will be provided performance-based leases for a period of 30 years or more. Speaking at a meeting held at the Lahore Chamber of Commerce and Industry (LCCI) on Thursday, he said the policy will apply not only to Special Economic Zones but also to other industrial estates. The formal announcement of the policy is expected before the holy month of Ramadan. Umar Masood said that a continuous, evidence- and data-based dialogue should be initiated to effectively resolve issues faced by the industrial sector. He said that the Punjab CM has clearly directed that practical steps be taken to promote industrial growth, as Punjab’s economy is based on three pillars: agriculture, industry and services. He added that governance and administrative reforms, along with infrastructure development, are essential in industrial zones, and public-private partnership is being promoted for this purpose. Appreciating the positive role of industry in complying with environmental laws, the Secretary said that Lahore has experienced relatively better winters after many years. However, a one-window and technology-based system will be introduced for environmental compliance to reduce unnecessary inspections and human interference. He expressed concern over the low utilisation of Rs 5 billion allocated under the zero-per cent financing scheme for environmental improvement. He said that if there are any flaws in the scheme’s design or communication, chambers should point them out so that improvements can be made in the upcoming budget. LCCI President Faheem-ur-Rehman Saigol stressed that all relevant stakeholders must be taken on board before the implementation of any new policy. He stated that the industrial sector in Punjab is under severe pressure. Industry’s share in GDP has declined to only 18 per cent, while large-scale manufacturing recorded negative growth of 1.5 per cent during fiscal year 2024-25, which is alarming. He said that rising business costs have become a major challenge for the economy. High policy rates, heavy taxation, expensive energy and unsuitable economic policies are forcing local and multinational companies to move their businesses abroad, leading to capital flight. Expressing concern over a 40 per cent decline in food exports, the LCCI President said that Punjab’s agro-based industries can significantly increase national exports through food processing, value addition and export marketing, provided the government offers special incentives. He emphasized the need for financial support for industrialists to meet environmental compliance, facilitation for installation of water treatment plants for SMEs, promotion of electric vehicles, collateral-free financing for SMEs, reduction in high industrial land prices, introduction of a long-term lease policy, establishment of separate Special Economic Zones for SMEs, LCCI representation on industrial boards, and upgrading skill development programs. ‘Customs reforms designed to facilitate trade, ensure transparency’