Govt committed to reviving economy in collaboration with business community: Tanveer

LAHORE: Federal Minister for Industries and Production Rana Tanveer Hussain has said that the government is committed for economic revival through collaboration with the business community. Prime Minister Shehbaz Sharif’s decisive measures have been instrumental in stabilizing the economy, particularly during his last tenure of 16 months he averted the risk of default and setting the nation on a path towards recovery.

He was speaking at the Lahore Chamber of Commerce and Industry. LCCI President Mian Abuzar Shad, Vice President Shahid Nazir Chaudhry, former Presidents Mian Anjum Nisar, Muhammad Ali Mian, former Senior Vice President Ali Hussam Asghar and former Vice President Faheem ur Rehman Saigol also spoke on the occasion.

The Minister underscored the Prime Minister’s consistent call for a “Charter of Economy” to ensure sustainable economic progress. He praised the economic reforms initiated under the different tenures of PML-N government. He said that the Economic Policy Reforms, introduced by the Nawaz Government in 90s, were adopted by the former Indian Prime Minister Manmohan Singh which continues to benefit India today.

Rana Tanveer Hussain said that a review of agreements with Independent Power Producers (IPPs) has resulted in lower electricity costs with further reductions expected by April to ease production expenses. He said that interest rates had been reduced from 22% to 12% within ten months. He said that SBP is independent and the government cannot interfere in its matters.

Calling for investment in research and development, the Minister stressed the need to support the industrial and agricultural sectors, encouraged exporters to focus on value addition and explore emerging markets such as Central Asia and Africa. He also announced plans to reduce land prices in Special Economic Zones (SEZs) and Export Processing Zones (EPZs) and to develop SEZs on Pakistan Steel Mills’ land.

While talking about Federal Board of Revenue’s (FBR) policies, Rana Tanveer Hussain described them as barriers to growth due to excessive taxation. He urged the business community to aim for exports of $100 billion over five years, exceeding the government’s target of $60 billion. The Minister also commended LCCI for its proactive approach in addressing business challenges and congratulated them.

LCCI President Mian Abuzar Shad raised concerns over rising energy costs, MDI charges on inactive industrial units and the high policy rate, which, though reduced to 13%, remains uncompetitive compared to regional countries. He emphasized the need to reduce the rate to single digits to encourage investment.

The President also called for measures to address the exorbitant prices of industrial land, which have reached Rs50 million per acre, hindering investment and limiting the competitiveness of exporters in global markets. He stressed the importance of ensuring the availability of raw materials, such as metals, steel and textiles and urged cascading tariffs to avoid industrial distortions.

Mian Abuzar proposed establishing Export Promotion Sectoral Councils led by the private sector under the Ministry of Industries to strengthen value chains across various industries. He also advocated the creation of new SEZs and EPZs in Lahore to address the capacity constraints of existing industrial estates and suggested formulating a 20-year industrial master plan to set up industrial zones in every district.

Highlighting environmental challenges, he called for financial support for SMEs to comply with regulations, including the installation of water treatment plants. He also encouraged the local manufacturing of electric vehicles and solar panels, suggesting joint ventures with Chinese companies.

LCCI Vice President Shahid Nazir Chaudhry voiced concerns about the high conversion fees charged by LDA on industrial land, urging the government to abolish the 20% commercial value charge, which is stifling industrial expansion.

The meeting also featured insights from former LCCI Presidents Mian Anjum Nisar, Muhammad Ali Mian and former Vice Presidents Ali Hussam Asghar and Faheem-ur-Rehman Saigal.

Mian Anjum Nisar said that earlier Gadoon Amazai and now FATA/PATA are being misused. The government should take notice.

Copyright Business Recorder, 2025