Punjab offers 10-year tax break to investors

LAHORE: Punjab Industries Minister Shafay Hussain has unveiled a new industrial policy that includes zero customs duty on imported machinery and a 10-year income tax exemption for businesses established in designated free economic zones, according to a statement released on Saturday.

Addressing the inauguration ceremony of the 11th Colour & Chem Expo 2026, the minister said investors can establish industries in the Sheikhupura, Bhalwal, and Rahim Yar Khan industrial estates under a four-year lease arrangement, with no-objection certificates (NOCs) to be issued within 30 days.

He said the incentives, including duty-free machinery imports and a decade-long income tax holiday, are designed to encourage investment and accelerate industrial growth in the province.

Hussain noted that several Chinese firms have already started making substantial investments in Punjab, driven by lower labour costs, with multiple manufacturing units expected to become operational during the current fiscal year. He said new projects are being launched in sectors such as pharmaceuticals, synthetic leather, food processing, lithium batteries, electric bikes, and tiles. The provincial government is also preparing a dedicated policy to support the development of Pakistan's chemicals industry.

The minister disclosed that the chip frame manufacturing facility being developed by Vivo Mobiles is 40% complete and is expected to begin production within the next year. He added that Chinese companies are also planning to start local production of lithium batteries.

He further said the Punjab government has allocated funds to improve infrastructure in 24 small industrial estates across the province. According to the minister, around 70% of traders have benefited from the Asaan Tajir Scheme, while a new financing programme offering loans of up to Rs100 million for large-scale industrialists is also being launched.

Referring to regional developments, Hussain said Pakistan's citrus exports have suffered due to the Iran conflict and emphasized the importance of expediting the Iran-Pakistan gas pipeline project. He added that the promotion of electric vehicles and electric bikes remains a key priority as countries seek alternatives amid the global energy crisis.

Expo organiser Rashidul Haq said the exhibition has brought together 350 local and international exhibitors, creating opportunities for business collaboration, investment, and industry networking. Convener Abdul Rahim Chughtai urged the government to introduce business-friendly policies aimed at lowering production costs and improving the competitiveness of local industries.

Lahore Chamber of Commerce and Industry (LCCI) President Faheemur Rehman Sehgal called for a reduction in the petroleum levy to ease financial pressure on businesses, while FPCCI Senior Vice President Saqib Fayyaz Magoon said increasing production costs have prompted several multinational companies to either scale back or cease operations in Pakistan in recent months.

The 11th Colour & Chem Expo 2026 will continue through Sunday, bringing together manufacturers, investors, policymakers, and industry experts to discuss emerging trends and opportunities in the chemicals sector.