KARACHI: The Pakistan Business Council (PBC) has expressed surprise over the federal government’s approval of a new industrial policy without prior consultation with the country’s leading industrial stakeholders.

The policy, aimed at revitalising the ailing manufacturing sector, was finalised on Friday during a meeting of the Prime Minister’s Committee on Industrial Policy. The decision highlights the urgency of reform measures as the country grapples with prolonged industrial contraction.

In a communication addressed to Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan on Saturday, PBC CEO Ehsan Malik noted that the government had accepted the council’s long-standing recommendation to formulate an industrial policy that channels investment into sectors where Pakistan enjoys or can develop a comparative advantage.

He recalled that during a recent visit by the SAPM to PBC’s office, the two sides had discussed the need for such a policy in considerable detail, and the council had offered its support in its formulation. However, he said the PBC has not yet seen the approved policy and requested the SAPM to share it with the Council.

Urges inclusion in implementation committees

Citing press reports, Mr Malik noted that the policy appears to place significant emphasis on the revival of sick industries and provision of credit to small and medium enterprises (SMEs). While these initiatives may be beneficial, he cautioned that such support should be aligned with sectors identified as having a comparative advantage in the newly announced policy.

The PBC has consistently called for the alignment of government policies across ministries to ensure sustainable business growth and higher tax revenues. In this regard, Mr Malik welcomed the separation of fiscal policy from tax collection, terming it a vital step towards growth-oriented policymaking.

He emphasised that a higher tax-to-GDP ratio should be the result of well-aligned, pro-growth fiscal policies — not the objective achieved merely by increasing the burden on already taxed segments of the economy.

Highlighting PBC’s significance, Mr Malik stated that the council comprises nearly 100 leading local and multinational companies, responsible for 40pc of the country’s exports and employing millions across extended value chains. Many of its members are based in the manufacturing sector, and the council has produced extensive research under its “Make-in-Pakistan” initiative to promote industrial development and exports.

He expressed disappointment over PBC’s exclusion from most of the sub-committees formed to advance the objectives of the Ministry of Industries and Production. “We are therefore surprised at the exclusion of PBC from most of the sub-committees that you announced,” he said, noting that many of the nominated bodies are predominantly composed of traders.

Mr Malik urged the SAPM to reconsider the composition of these committees to ensure broader representation from the industrial sector, particularly from organisations actively contributing to policy research and manufacturing development.

Published in Dawn, July 6th, 2025