Islamabad: The government has decided to reduce the tax burden on industries to accelerate economic activity and revive industrial growth. As part of this move, the industrial sector is expected to receive corporate tax relief in the upcoming federal budget, with the government planning to formally engage the International Monetary Fund (IMF) for approval.
According to official sources, the Ministry of Industries and Production has completed its groundwork for the proposal. The plan aims to increase the industrial sector’s share in GDP by 10 percent and raise exports by 6 percent over the coming years.
Prime Minister’s Special Assistant Haroon Akhtar Khan, while speaking to media, confirmed that five major companies have shown readiness to invest in the revival of Pakistan Steel Mills. He said the government expects the steel mill to become fully operational within four years. He also revealed that negotiations with two Russian companies are in the final stages to support the revival process.
Haroon Akhtar Khan further stated that the sugar sector will be deregulated by June 2026, marking a major reform initiative.
He emphasized that the government has introduced Pakistan’s first-ever comprehensive industrial policy, aiming to increase the industrial sector’s contribution to GDP from 18 percent to 26 percent. He acknowledged that achieving industrial growth targets under the current tax structure is difficult, which is why the government will seek IMF approval for tax exemptions and reduced corporate taxes.
The government plans to convince the IMF that tax relief will help expand the tax net, rather than reduce revenue. Haroon Akhtar Khan also announced that mobile phones, tractors, and solar batteries will be manufactured locally, while work is underway to introduce a new policy for grid storage technology.
