Punjab's new industrial policy aims to lure investors with four-year lease plans, zero import duties on machinery, and a decade-long income tax holiday in designated free economic zones. Provincial Minister for Industries, Commerce and Investment Shafay Hussain announced the incentives on Saturday at the opening of the 11th Colour and Chem Expo 2026 in Lahore. Main Developments Three industrial estates—in Sheikhupura, Bhalwal, and Rahim Yar Khan—are now open for investors under the new framework. Hussain confirmed that anyone setting up an industry in these zones will receive zero duty on machinery imports and no income tax for 10 years. Chinese companies have already begun investing to avoid rising labor costs in China, the minister noted. New manufacturing plants in pharmaceuticals, synthetic leather, food processing, lithium batteries, electric bikes, and tiles are expected to come online during the current financial year. Read also: Pakistan's Current Account Slips to $139m Deficit in FY26 Background Punjab has long sought to industrialize its economy but faced bureaucratic delays and inconsistent policies. The new policy mandates a strict 30-day limit for issuing no-objection certificates (NOCs), addressing a key investor complaint about red tape. The announcement came at a two-day international exhibition for the chemicals industry, where Hussain reviewed products from domestic and international exhibitors. He also linked the policy to broader challenges: Pakistan's citrus industry has suffered due to the Iran conflict, and the Iran-Pakistan gas pipeline project remains stalled. Why It Matters These incentives could accelerate foreign direct investment at a time when Pakistan's current account slipped into deficit and short-term inflation hit 13 percent. The policy targets job creation and import substitution, particularly in high-value sectors like lithium batteries and electric vehicles. Promoting electric bikes and EVs is a government priority amid the global energy crisis, Hussain said. The first chip frame manufacturing plant—Vivo Mobiles—is already 40 percent complete in Punjab and expected to start production within a year. What's Next Hussain indicated that a dedicated policy for Pakistan's chemicals industry is being drafted. Lithium battery manufacturing by Chinese companies is anticipated soon. The minister added that future global oil price reductions will depend on regional peace and stability, suggesting that investor confidence hinges on geopolitical developments.