Business

Federal Minister for Commerce Jam Kamal Khan on Monday reaffirmed the government’s commitment to building a business-friendly environment by simplifying regulations, encouraging industrial development, supporting small and medium enterprises (SMEs), and expanding Pakistan’s manufacturing sector. Government Reaffirms Commitment to a Business-Friendly Environment The minister made the remarks during a meeting with a delegation from the Islamabad Chamber of Small Traders and Small Industries (ICSTSI), where both sides discussed key issues affecting Pakistan’s business community, including SME financing, taxation, industrial infrastructure, export promotion, and the ease of doing business. According to an official press release, the delegation welcomed the State Bank of Pakistan’s (SBP) recent revision of the SME definition, describing it as a positive development that would enable more businesses to qualify for financial assistance, banking facilities, and incentives available to formally registered enterprises. Jam Kamal said the government was focused on reducing unnecessary regulatory barriers and modernising business procedures through digitalisation and institutional reforms. He stressed that outdated regulations and overlapping administrative requirements must be gradually eliminated to make it easier for entrepreneurs to establish and expand their businesses. Business Registration and Regulatory Reforms He added that efforts were underway to simplify the business registration process through a more integrated and facilitative system, allowing entrepreneurs to complete all regulatory requirements efficiently before launching commercial operations. The minister emphasised that creating a business-friendly environment remains central to the government’s economic strategy, as reducing bureaucratic hurdles would encourage entrepreneurship, attract investment, and strengthen Pakistan’s industrial base. SMEs Seek Easier Access to Finance and Industrial Infrastructure During the meeting, the ICSTSI delegation highlighted that a significant portion of Pakistan’s small business community continues to operate using self-financing and often avoids formal registration because of complex procedures, repeated tax audits, and high compliance costs. Responding to these concerns, Jam Kamal said broadening the country’s tax base through voluntary documentation, rather than increasing the burden on existing taxpayers, remains one of the government’s key policy objectives. He noted that encouraging businesses to enter the formal economy would improve transparency while supporting sustainable economic growth. The discussion also focused on the need for dedicated industrial zones for SMEs, particularly in Islamabad. The delegation pointed out that many small manufacturers currently operate from residential neighbourhoods and informal workshops because establishing formal industrial units is often too expensive. Business representatives proposed the development of specialised industrial estates equipped with essential infrastructure, including electricity, natural gas, water supply, and road connectivity. They argued that such facilities would enable small industries to operate more efficiently while complying with environmental and safety standards. Industrial Zones and Manufacturing Growth Jam Kamal agreed that organised industrial zones for SMEs would significantly improve productivity, product quality, employment opportunities, and environmental compliance. He said expanding industrial infrastructure would also strengthen local manufacturing and enhance the competitiveness of Pakistani products in domestic and international markets. The meeting further reviewed Pakistan’s rapidly growing food industry and the increasing role of e-commerce, digital platforms, and online delivery services in creating new commercial opportunities. The minister observed that the food and hospitality sectors have become important contributors to employment and economic activity, offering substantial potential for future investment and business expansion. Proposal for Modern Slaughterhouse and Livestock Development The delegation also urged the federal government to establish a modern slaughterhouse in Islamabad. According to business representatives, an eight-hectare site has already been identified and planning work completed, but the project has remained stalled because of administrative and environmental challenges. They said a modern slaughterhouse would improve hygiene standards, food safety, traceability, environmental management, and the quality of Pakistan’s halal meat exports, helping the country capture greater opportunities in international markets. Acknowledging the proposal, Jam Kamal said strengthening Pakistan’s livestock value chain is essential for increasing agricultural exports and improving value addition. He noted that better utilisation of animal by-products—including hides, bones, fats, and blood—could generate additional economic value while reducing environmental waste. Public-Private Partnerships to Drive Investment Another proposal discussed during the meeting was the development of a 100-acre industrial project through a public-private partnership involving the federal government, the Punjab government, and private investors. The commerce minister welcomed the proposal and encouraged the business community to prepare commercially viable, investment-ready projects that could attract both public and private sector participation. He concluded by saying that public-private partnerships, technological innovation, industrial diversification, and continued reforms would play a crucial role in creating a business-friendly environment, strengthening Pakistan’s manufacturing sector, increasing exports, attracting investment, and generating sustainable employment opportunities across the country. Key Takeaways The meeting reflected the government’s broader strategy to improve the ease of doing business by modernising regulations, expanding industrial infrastructure, and supporting SMEs, which are widely regarded as the backbone of Pakistan’s economy and a key driver of long-term economic growth.