LAHORE: The Federation of Pakistan Chambers of Commerce & Industry’s (FPCCI) Businessmen Panel (BMP) Chairman Mian Anjum Nisar has welcomed the government’s proposal to introduce a credit scheme for the revival of sick industrial units but cautioned that without practical, on-ground reforms, such initiatives will remain confined to paperwork.
He urged the government; here on Sunday to link the revival plan with structural changes in industrial financing, energy pricing, and regulatory facilitation to ensure genuine industrialization rather than temporary bailouts.
Commenting on the sub-committee’s proposals under the Pakistan Industrial Policy, Mian Anjum Nisar said that offering tax-linked loans, sales tax duty-linked financing, and declaring fresh lending for revival as a priority were steps in the right direction, but these measures alone cannot address the deep-rooted challenges faced by industries that have been closed for years or are running far below capacity. “Our industry does not just need credit; it needs a competitive environment to survive and grow,” he emphasized.
He noted that the Special Assistant to the Prime Minister, Haroon Akhtar Khan, had rightly defined sick units as those closed for more than 12 months, operating at less than 30% capacity, or unable to repay loans. “However,” Mian Anjum said, “Before injecting fresh credit, we need to understand why these units became sick in the first place. The reasons include uncompetitive energy tariffs, unpredictable tax policies, delayed refunds, lack of modern machinery, and poor access to export markets. If these structural bottlenecks remain, any revival credit will only postpone closures rather than prevent them.”
The FPCCI BMP Chairman stressed that while the committee’s recommendation for the State Bank of Pakistan to issue a special framework – offering principal haircuts, tenor extensions, interest rate adjustments, and easier working capital is sensible, it must be accompanied by a parallel strategy to reduce the cost of doing business. “A principal haircut may ease the borrower’s repayment burden, but without affordable inputs like electricity, gas, and raw materials, the unit will not achieve sustainable production,” he said.
Mian Anjum proposed that the government establish a National Industrial Rehabilitation Programme that goes beyond financing. “Such a programme should combine low-cost energy packages for revival units, fast-track tax refund clearance, subsidized import of modern machinery, and guaranteed access to both domestic and export markets,” he suggested. “It should also include skill development programs to train workers in modern industrial techniques, because without a skilled workforce, even revived plants cannot compete internationally.”
He welcomed the proposed creation of an Industrial Revival Commission to classify sick units and develop tailored recovery plans, but warned that the body must be free from bureaucratic delays and political interference. “The Commission should be composed of professionals from the private sector, industrial associations, and technical experts—not just government officials—so that decisions are business-driven rather than politically motivated,” he added.
The FPCCI BMP leader pointed out that the government has already allocated Rs10 billion this financial year for subsidies to export-oriented industries under the Petroleum Division, but such support should be targeted more transparently. “Too often, subsidies are given across the board without performance monitoring. If we want sick units to revive, we must link incentives to measurable outcomes like increased output, job creation, and exports,” he said.
Calling for a One-Window Industrial Revival Cell, Mian Anjum urged that all regulatory approvals, financing documentation, tax matters, and energy connections for revival units should be handled under a single platform to eliminate the red tape that discourages investment. “Our entrepreneurs spend months running from one department to another just to get a utility connection or a tax clearance. In the modern world, this is unacceptable,” he remarked. He further highlighted that Pakistan’s industrial base has been shrinking due to a lack of policy continuity and inconsistent energy supply. “If the government wants real industrial revival, it must guarantee uninterrupted power and gas supply to these units at regionally competitive rates,” he said, adding that energy security is the lifeline of manufacturing.
The FPCCI BMP Chairman urged policymakers to integrate the revival scheme with the Special Economic Zones (SEZs) under CPEC, offering sick units relocation opportunities with tax holidays, duty-free machinery imports, and infrastructure support. “Many sick units are located in congested, outdated industrial areas. Relocating them to modern SEZs could drastically reduce operational costs and improve productivity,” he noted.
Mian Anjum cautioned against relying solely on bank incentives and protection from audits as proposed by the committee. “While banks must be encouraged to finance revival projects, they also need guarantees that these loans will be backed by viable business plans, not just political pressure. A transparent, merit-based loan approval process is critical,” he said.
He concluded by stressing that the revival of sick industries should be seen not merely as a financial rehabilitation exercise but as part of a national industrialization agenda.
Copyright Business Recorder, 2025
