The federal government on Wednesday announced a comprehensive economic overhaul aimed at reviving Pakistan’s industrial sector, revealing plans to phase out the super tax and slash tariffs in a move projected to save businesses over Rs. 425 billion annually. The sweeping agenda was detailed by Haroon Akhtar Khan, Special Assistant to the Prime Minister (SAPM) on Industries and Production, during his keynote address at the Pakistan Prosperity Forum 2025.
The forum, organized by the Policy Research Institute of Market Economy (PRIME), convened under the theme ‘Charting a New Path Toward Limited Government and Lower Taxes,’ gathering prominent policymakers, economists, and corporate leaders to discuss the nation’s economic future.
Mr. Khan described Pakistan as being at a ‘critical inflection point,’ stressing the government’s determination to implement profound, long-term systemic changes rather than relying on short-term fixes. ‘Economic stability is not achieved by chance; it is built through consistency, credibility, and competence,’ he remarked, aligning the strategy with the vision of Prime Minister Shehbaz Sharif.
A central pillar of the reform is the New National Tariff Policy, which marks a significant shift from protectionism to promoting competitiveness. The SAPM announced that the complex tariff structure has been simplified into four slabs-0%, 5%, 10%, and 15%-while cumbersome Additional and Regulatory Duties are being eliminated. This rationalization is expected to save the industrial sector Rs. 175 billion each year. ‘We are making tariffs an engine of export-led growth rather than a barrier to trade,’ Mr. Khan stated.
The policy also seeks to diversify the country’s industrial base by promoting value-added and technology-intensive sectors, including artificial intelligence, electric vehicles, chemicals, and green technologies. ‘While some nations weaponize tariffs, Pakistan is rationalizing them – lowering costs, building resilience, and integrating into global value chains,’ he added.
On the regulatory front, Mr. Khan highlighted the success of the Regulatory Guillotine and Reform Initiative, which has already implemented 465 simplifications, saving businesses an estimated Rs. 250 billion annually. He confirmed that the forthcoming Asaan Karobar Act 2025 would institutionalize these advancements to ensure their permanence.
The SAPM also unveiled the National Industrial Policy 2025, calling it a ‘blueprint for national revival.’ Developed through extensive consultation with the State Bank, SECP, FBR, and major chambers of commerce, the policy is designed to restore investor confidence and bolster manufacturing capacity.
To address long-standing issues, the government is establishing the National Industrial Revival Commission (NIRC) and a specialized Revival and Debt Resolution Framework. These bodies will focus on restructuring non-performing industrial assets and fostering strategic partnerships to rejuvenate struggling enterprises.
Further reforms include preferential electricity tariffs for high-tech greenfield industries and a commitment to creating a harassment-free regulatory environment with improved grievance redressal mechanisms.
‘We are shifting from protectionism to productivity, from ad-hoc incentives to performance-based rewards, and from import dependence to value addition,’ Mr. Khan declared. ‘In doing so, we are not just reviving factories – we are rebuilding the spirit of enterprise that once made Pakistan a rising industrial power in South Asia.’