Punjab Industries Account for Over Half of GDP Contribution, Says Finance Minister.

Lahore: Provincial Finance Minister Mujtaba Shuja-ur-Rehman highlighted the significant economic progress achieved by both the federal and Punjab governments over the past eight months, citing improvements in economic indicators. Speaking at the Lahore Chamber of Commerce and Industry (LCCI), he noted that Punjab has introduced a tax-free budget of 5.5 trillion rupees to support business growth. LCCI President Mian Abuzar Shad, who was also present, provided the welcome address, while other notable figures, including Senior Vice President Engineer Khalid Usman and former President Muhammad Ali Mian, contributed to the discussions.

According to Lahore Chamber of Commerce and Industry, the Provincial Minister credited Prime Minister Shehbaz Sharif and Chief Minister Maryam Nawaz, along with their teams, for the economic improvements. He mentioned that the stock market has reached new heights, interest rates have stabilized at around 17%, and inflation has decreased from 30% to approximately 11-12%. The Minister also commended the stabilization of the dollar’s value at around 280 rupees, with expectations for further decline next year. He pointed out a shift in investment from real estate to manufacturing.

Mujtaba Shuja-ur-Rehman announced that budget projects have commenced, with the first phase of the Nawaz Sharif Hospital in Sargodha set to begin operations in cardiology by next year, and the Nawaz Sharif Cancer Hospital in Lahore operational by 2025 to provide free treatment for the underprivileged. He discussed initiatives such as a free heart surgery program for children, an e-bike program for students, successful school nutrition projects, and field hospitals.

He acknowledged the shortage of 80,000 teachers in Punjab and noted efforts to address this, alongside a focus on doctor shortages. IT, education, and film city projects in Lahore have been launched, with Punjab’s IT sector having a $2 billion export potential. Under the “Dastak” program, 60 services will be available at residents’ doorsteps, with solar tube wells planned by year’s end. Programs like the “Sharm Farming Project” and the Green Tractor Scheme, which offers a subsidy of 1 million rupees per tractor, have been introduced, along with interest-free loans up to 1.5 million rupees under the “Apni Chhat” program.

The Provincial Minister emphasized encouraging industries to comply with environmental regulations rather than pressuring them. A 300 billion rupee budget has been allocated for road restoration under the “Prosperous Punjab” initiative. LCCI President Mian Abuzar Shad advocated for vertical buildings to address space shortages and called for a sales tax rate reduction in Punjab to align with Sindh’s 13%. He also urged the removal of the Punjab Infrastructure Development Cess.

Furthermore, he criticized the Federal Board of Revenue’s increased property valuation rates in 56 cities, requesting a review. Mian Abuzar Shad reiterated that Punjab’s industries contribute over 50% to the GDP. Senior Vice President Engineer Khalid Usman suggested reducing utility prices for industries and highlighted that SMEs, which account for about 65% of those in Punjab, receive less than 6% of private sector financing. He called for collateral-free loans for SMEs to access technology. Former LCCI President Muhammad Ali Mian addressed challenges faced by traders and requested funds for market infrastructure development.

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