Pakistan Sets $60B Export Target in industrial policy
Pakistan’s new industrial policy sets an export-focused path to rebuild manufacturing, attract investment, and integrate into global value chains by 2030.
Key Policy Features
- Export-Led Growth Focus:
The policy shifts Pakistan’s industrial strategy from import substitution to export-driven manufacturing, targeting $60 billion in exports and 8% annual industrial growth by 2030. - Tax Rationalization:
Proposes a gradual reduction in corporate income tax and phased removal of the super tax to enhance investment competitiveness and ease the burden on formal manufacturing. - Energy Cost Reforms:
Aims to lower industrial power tariffs and allow direct power purchases from private producers, reducing production costs and ending cross-subsidies. - Tariff Policy Alignment:
Aligns with the National Tariff Policy 2025–30, phasing out additional customs and regulatory duties while cutting tariffs on raw materials and machinery to near zero. - Investment and SEZ Development:
Expands Special Economic Zones (SEZs) with one-window clearance, digital land allotment, and long-term industrial leases under a new National Industrial Land Bank. - Trade Facilitation:
Links the Pakistan Single Window (PSW) with provincial investor portals to speed up export documentation, reduce customs delays, and cut transaction costs. - Access to Finance:
Promotes trade credit insurance through EXIM Bank, inventory-backed lending, and creation of industrial bonds to expand affordable working capital for manufacturers. - Regulatory Simplification:
Introduces “Aasan Karobar” frameworks to halve approval times, reduce permits, and digitize licensing across provinces to improve ease of doing business. - Technology and Standards Upgradation:
Establishes a single certification window for ISO, CE, and Halal compliance, expands domestic testing capacity, and incentivizes technology transfer and R&D adoption. - Green and Inclusive Industrialization:
Encourages renewable energy use, waste minimization, and women-led production zones within industrial estates to promote sustainability and inclusion.
Pakistan has formulated National Industrial Policy 2025–2030 to rebuild its manufacturing base and shift the economy toward exports.
Read More: Cabinet approves National Tariff Policy
The plan, released in draft form by the Ministry of Industries and Production, seeks to lift industrial growth to 8% annually and raise exports to $60 billion by the end of the decade. It outlines reforms in energy pricing, taxation, logistics, and financing to restore competitiveness and draw foreign investment.
The document positions industry as the “engine of economic transformation,” aligned with the Prime Minister’s Economic Transformation Agenda.
It aims to end years of deindustrialization and import dependency that have weakened the country’s growth potential. The policy calls for a predictable business environment, lower energy costs, and simpler regulations to unlock new manufacturing investment.
Officials said the policy was shaped through 20 consultations across sectors, including textiles, engineering, agro-processing, pharmaceuticals, and automotive manufacturing. It seeks to embed Pakistan into regional and global value chains by encouraging higher-value exports, advanced manufacturing, and green technology adoption.
The timing aligns with Pakistan’s ongoing IMF program and fiscal reforms. The government reached a staff-level agreement with the IMF on October 14, 2025, covering the Extended Fund Facility and Resilience and Sustainability Facility. The IMF has emphasized credible fiscal management, exchange rate flexibility, and reform continuity to maintain macroeconomic stability — preconditions critical for the industrial plan’s success.
Economic indicators show modest recovery but fragile momentum. The State Bank of Pakistan kept its policy rate unchanged at 11% in October 2025, citing inflation at 5.6% year-on-year in September. The central bank projects gradual growth supported by stable external accounts. Stable monetary policy, the report notes, is vital for industrial confidence and long-term investment planning.
The policy highlights energy costs as the most severe constraint to industrial competitiveness. Electricity tariffs for industrial users remain among the highest in the region, undermining export viability. The draft calls for uniform tariffs, grid modernization, and market-based reforms allowing direct power purchases from independent producers. It supports NEPRA’s multi-year tariff determinations but warns that circular debt must be contained through governance and billing reforms.
Taxation also features prominently. Manufacturing contributes roughly 58% of total taxes while accounting for just 12–13% of GDP, according to government estimates. The policy proposes a gradual reduction in the corporate income tax rate and rationalization of the super tax to attract private investment. It also seeks a unified tax regime for manufacturing firms and digital integration of filings to reduce compliance burdens.
Trade facilitation and logistics reforms form another core of the strategy. The policy links with the Pakistan Single Window (PSW) system, which aims to digitize clearances, reduce paperwork, and expand risk-based inspections. Integration of PSW with provincial one-window investor services is expected to lower transaction costs and reduce export lead times by as much as 30%.
Tariff rationalization is central to the export shift. The National Tariff Policy 2025–30, launched alongside the industrial plan, proposes phasing out additional customs duties and regulatory surcharges. Input tariffs will be lowered to near zero for raw materials and machinery, while moderate protection will remain for finished goods. The objective is to replace import substitution with export competitiveness and to ensure consistency with World Trade Organization rules.
The draft policy also promotes financial deepening and credit access. It proposes expanded trade credit insurance through EXIM Bank, the creation of sector-specific bonds, and relaxed collateral rules for small and medium manufacturers. Banks will be encouraged to provide inventory-backed lending and to sell non-performing assets to specialized restructuring companies to revive distressed industrial firms.
Industrial land reforms are also part of the blueprint. The government plans to establish a national industrial land bank offering long-term leases for investors. Special Economic Zones (SEZs) will gain “real one-stop” authority with digitized approvals and service access. The plan calls for gender-inclusive industrial estates with designated production zones for women-led enterprises.
Standards and quality infrastructure receive special emphasis. Pakistan’s fragmented testing and certification system, the draft says, delays export shipments and limits SME participation. The policy proposes a unified certification window, local testing labs for ISO and CE compliance, and partnerships with regional bodies to speed certification.
At the provincial level, the government’s “Aasan Karobar” initiative aims to halve approval times for industrial projects. Khyber Pakhtunkhwa has already introduced a digital one-window system, with Punjab and Sindh expected to follow. Coordination between provincial portals and the PSW is intended to build an integrated industrial facilitation ecosystem.
Analysts note the policy’s success will hinge on disciplined execution. Fiscal constraints under the IMF program, political challenges in energy pricing, and exchange-rate volatility could all slow implementation. The government has tasked the Prime Minister’s Delivery Unit to monitor reform milestones across ministries and ensure accountability for targets.
Pakistan’s exports totaled $2.18 billion in April 2025, down month-on-month but up 4.5% year-on-year in rupee terms. Despite recent gains, the country’s export-to-GDP ratio remains below 10%, one of the lowest in South Asia. According to the Pakistan Bureau of Statistics, manufacturing output grew just 1.2% in fiscal 2024, underscoring the need for structural change.
The Ministry of Industries said the National Industrial Policy would serve as the anchor for future investment, energy, and trade reforms. It links industrial upgrading with green technologies and inclusive employment, aiming to generate high-value exports in sectors like engineering, electronics, and agro-processing.
Pakistan National Industrial Policy’s credibility, analysts say, will rest on sustained reforms and stable governance. If executed effectively, it could reset Pakistan’s industrial base, restore investor confidence, and position the country as a competitive manufacturing hub in South Asia.
