Chinese firms investing in EV batteries, chip frame plant as province unveils industrial zones
LAHORE:
Punjab Industries Minister Shafay Hussain has announced a new industrial policy offering zero duty on machinery imports and 10-year income tax exemptions for industries in free economic zones, according to a statement issued on Saturday.
Speaking at the inauguration of the 11th Colour & Chem Expo 2026, Hussain said investors can set up industries in Sheikhupura, Bhalwal and Rahim Yar Khan industrial estates with a four-year lease offer and a 30-day NOC timeline.
“Anyone can set up an industry in the industrial estates of Sheikhupura, Bhalwal and Rahim Yar Khan with offers of zero per cent duty on imports of machinery and no income tax for 10 years,” he said.
Chinese companies have already begun significant investments to avoid costly labour, with several new manufacturing plants expected during the current fiscal year. New industries are being set up in pharmaceuticals, synthetic leather, food processing, lithium batteries, electric bikes and tiles, Hussain said. He added that a dedicated policy for Pakistan’s chemicals industry is being introduced to strengthen the sector.
The minister revealed that Vivo Mobiles’ chip frame manufacturing plant is 40% complete and expected to start production within a year. Lithium batteries will also be manufactured by Chinese companies soon.
Punjab has approved funds for infrastructure development at 24 small industrial estates across the province, while 70% of traders have benefited from the Asaan Tajir Scheme. A new scheme providing loans up to Rs100 million for large-scale industrialists is also being introduced.
Commenting on regional issues, Hussain said Pakistan’s citrus industry has been adversely affected by the Iran conflict and stressed the need to accelerate the Iran-Pakistan gas pipeline project. He said promoting electric vehicles and electric bikes remains a priority amid the global energy crisis.
Expo organiser Rashidul Haq said the exhibition features 350 local and international exhibitors, providing a platform for business networking and investment opportunities. Convener Abdul Rahim Chughtai urged the government to introduce industry-friendly policies to reduce production costs and enhance competitiveness.
LCCI President Faheemur Rehman Sehgal called for a reduction in the petroleum levy to ease the business burden, while FPCCI Senior Vice President Saqib Fayyaz Magoon warned that rising production costs have forced several multinational companies to scale down or withdraw operations from Pakistan in recent months.
The 11th Colour & Chem Expo 2026 continues until Sunday, bringing together industry leaders, manufacturers, investors and policymakers to explore emerging trends in the chemicals sector.
