By our correspondent
ISLAMABAD: Prime Minister’s Special Assistant Haroon Akhtar has expressed grave concern over the decline of Pakistan’s industrial sector, stating that its share in the national GDP has fallen drastically from 26 percent to just 18 percent.
The revelation came during a meeting of industrial policy committees, convened under the Prime Minister’s directive and chaired by Haroon Akhtar. According to the meeting’s statement, the decline reflects an 8 percent drop over recent years, prompting urgent discussions and policy proposals aimed at revitalizing the sector.
Eight subcommittees formed under the initiative have now submitted their recommendations, which were reviewed during the session. Among the key proposals are amendments to the Corporate Rehabilitation Act 2018 and a phased reduction in corporate tax for the manufacturing sector—from the current 29 percent to 26 percent over three years.
The State Bank of Pakistan will soon issue guidelines to support the revival of sick industries and resolve outstanding debts. The Banking Association, in coordination with the government, has helped develop a classification system for industrial units to better target support. Other legislative reforms under consideration include proposed amendments to the SECP Act, Anti-Money Laundering Act, and the Income Tax Ordinance.
In an effort to ensure timely execution, Haroon Akhtar has established ten implementation committees tasked with turning recommendations into action. The steep drop in the industrial sector’s contribution to GDP underscores the structural weaknesses in Pakistan’s economy, including energy shortages, inflation, and lack of investment, which policymakers now appear determined to address with a coordinated revival plan.
