Punjab govt plans to introduce industrial land lease policy
LAHORE: Secretary Industries, Investment and Commerce Punjab, Muhammad Umar Masood, said that the Punjab government is planning to introduce a long-term industrial land lease policy to promote industrial growth in the province.
Under this policy, industrial units will be provided performance-based leases for a period of 30 years or more.He said the policy will apply not only to Special Economic Zones but also to other industrial estates across Punjab. The formal announcement of the policy is expected before the holy month of Ramadan. He was speaking at a meeting held at the Lahore Chamber of Commerce and Industry (LCCI).
In his welcome address, LCCI President Faheem-ur-Rehman Saigol said that relations between the Lahore Chamber and the Industries Department are strong and will continue in the future for the promotion of industrial growth. He stressed that all relevant stakeholders must be taken on board before the implementation of any new policy.
The meeting was attended by Senior Vice President Tanveer Ahmad Sheikh, Vice President Khurram Lodhi, Managing Director Punjab Small Industries Corporation Saira Umar, former LCCI President Muhammad Ali Mian, former Senior Vice President Ali Hussam Asghar, and Executive Committee members Ihtisham-ul-Haq, Abdul Majeed, Muneeb Manu, Rana Shouban Akhtar, Amir Ali, Waqas Aslam and Irfan Ahmed Qureshi.
The LCCI President said that the industrial sector in Punjab is under severe pressure. Industry’s share in GDP has declined to only 18 percent, while large-scale manufacturing recorded negative growth of 1.5 percent 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.
Faheem-ur-Rehman Saigol termed the Sindh Infrastructure Development Cess ineffective and harmful, and urged the government to take action at the federal level to abolish this additional tax in order to reduce business costs.
Expressing concern over a 40 percent 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 in the province.
He also said that unnecessary interference by government departments in Special Economic Zones is creating hurdles for investment and must be addressed.
The Secretary Industries said that stronger coordination between the government and chambers of commerce is needed, and that a continuous, evidence- and data-based dialogue should be initiated to effectively resolve issues faced by the industrial sector.
He said that Punjab Chief Minister Maryam Nawaz Sharif 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 utilization of the Rs. 5 billion allocated under the zero-percent 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.
Copyright Business Recorder, 2026