ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has reapproved declaration of warehousing as industry to be notified by the Ministry of Industries and Production (MoI&P), well-informed sources told Business Recorder.
On January 6, 2025, Industries and Production Division briefed the ECC that the ECC, on August 15, 2024, approved the summary titled “declaration of warehousing as an industry” with the direction that “Industries and Production Division shall submit a report before the ECC on the status of concessions availed by the sectors already declared as ‘Industry’ vis-a-vis the concessions applicable for these sectors.
Industries and Production Division was further directed by the ECC to ensure that all due and applicable concessions are extended to the sectors declared as ‘Industry’. Later on, the Federal Cabinet, on August 20, 2024, directed that “the Ministry of Industries and Production to prepare a comprehensive plan for the Declaration of Warehousing as an industry and to place it before the Cabinet.”
Incompliance with the Federal Cabinet’s directions, the Ministry prepared a comprehensive plan and circulated the same among the main stakeholders for their comments. In order to ascertain the size and extent of the Warehousing and Logistics Industry in the Country, e.g. the number of such establishments or their estimated turn over, and the estimated financial implications, MoI&P requested Warehousing & Logistic Association and Pakistan Bureau of Statistics for provision of same on December 4, 2024, followed by subsequent reminder on11th December, 2024, but the response is still awaited. The Petroleum Division was also requested on December 11, 2024, for their comments on the impact of declaring warehousing and logistics as an industry on gas tariff and their response is also awaited.
Warehouses, logistics: industry status announced
The Industries and Production Division further briefed the forum that later on December 9, 2024, the Cabinet Division shared decisions of the ECC in Case No. ECC - of November 27, 2024. The decision reads as “The Industries and Production Division briefed the forum that the sectors declared as ‘Industry’ enjoy concessions in Power supply/tariff, credit and Setting up of industries. The forum sought progress on the decision related to declaring warehousing as industry, which was briefed by the Industries and Production Division. The forum observed that matter of declaring any sector as ’industry ’should be dealt with in new industrial policy because dealing with such cases requires a new and dynamic approach. The ECC directed the Industries and Production Division to submit summary in the next ECC meeting regarding the declaration of warehousing as industry after taking into consideration the directions of the Cabinet on the issue”.
The MoI&P sought approval of the ECC to declare Warehousing and Logistic Sector as an Industry as per the comprehensive plan.
During the ensuing discussion, the forum was apprised that the ECC, in its Decision of August 15, 2024 has already approved the proposal of MoI&P to declare warehousing as Industry and the Cabinet also ratified it on May 20, 2024.
Copyright Business Recorder, 2025
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