ISLAMABAD: The country’s industrialists have urged the government to formulate stable industrial policies and supportive tariff structures to encourage further investment and strengthen industrial self-reliance. These concerns and investment proposals were discussed during a meeting between Federal Minister for Commerce Jam Kamal Khan and representatives of the Pakistan Business Council (PBC), along with leading industrial stakeholders, including Taimur Dawood, CEO of Gatron Industries Limited and Novatex Limited.
The meeting focused on industrial competitiveness, tariff rationalization, export sustainability, and challenges facing Pakistan’s manufacturing sector.
Participants discussed the broader impact of tariff reforms, anti-dumping duties, and cost structures affecting local industries, particularly the petrochemical, plastics, polyester, and SME sectors.
Industrial representatives informed the minister that while tariff rationalization and trade liberalization are important policy objectives, abrupt, across-the-board duty reductions could negatively impact domestic manufacturing, government revenues, and industrial investment. They stressed the need to distinguish between genuine industrial exporters and trading activities that rely heavily on imports without contributing significantly to local value addition.
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Federal Minister Jam Kamal Khan emphasized that Pakistan’s industrial and export ecosystem must support long-term manufacturing growth and sustainable industrialization. He observed that emerging industries require time, infrastructure development, capital recovery, and policy stability before becoming globally competitive exporters.
The minister noted that policy decisions must remain responsive to evolving economic realities and geopolitical developments. He added that Pakistan’s economic environment differs significantly from many regional competitors due to factors such as security challenges, high energy costs, law-and-order concerns, and regional uncertainties, making direct comparisons difficult.
Participants also highlighted concerns about the informal economy and uneven enforcement, noting that compliant industries often face unfair competition from undocumented importers and unregulated sectors operating outside the tax and regulatory framework.
Jam Kamal Khan underscored the importance of stronger enforcement mechanisms to ensure fair competition and protect industries operating within the formal economy. He emphasized that sustainable industrial growth requires balanced policymaking, consistent implementation, and effective regulatory oversight.
The meeting also reviewed challenges faced by Pakistan’s petrochemical and downstream chemical industries, including fluctuating global raw material prices, high production costs, and shifting international market dynamics. Stakeholders underscored the strategic importance of downstream industries, including petrochemicals, PVC, plastics, and value-added manufacturing, for future industrial growth and export diversification.
Industrial representatives also briefed the minister on ongoing and planned investments in the manufacturing sector, including expansion projects involving international partners and foreign investors. They reiterated that stable industrial policies and supportive tariff structures are critical to attracting further investment and strengthening industrial self-reliance.
The minister observed that industrial development globally has historically been supported through phased protection and strategic policymaking. Citing examples from South Korea, China, Japan, and the United States, he noted that strong domestic industries are built gradually through policy consistency, investment support, and market stability.
Jam Kamal Khan reaffirmed the Ministry of Commerce’s commitment to continued engagement with the business community and industrial stakeholders to formulate balanced and sustainable trade policies aimed at boosting exports, strengthening manufacturing, supporting SMEs, and enhancing Pakistan’s long-term economic resilience.
Copyright Business Recorder, 2026
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