The Punjab government has decided to end the long-standing practice of offering industrial land at subsidized rates, finalizing a new industrial land lease policy aimed at promoting serious investment and boosting exports.
According to official sources, the policy focuses on pricing land closer to its actual market value, discouraging speculative holding, and encouraging productive industrial activity.
Major Changes in Lease Rates
Under the proposed policy:
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Industrial estate lease rates will increase from PKR 43,000 per acre to PKR 125,000 per acre
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Lease rates will rise by 5% annually
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The old concession-based system will be completely abolished
In addition, investors will now be required to invest USD 1.5 million per acre within two years, ensuring only serious and capable investors enter the industrial sector.
Strict Timelines for Investors
The policy introduces firm deadlines:
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Construction must begin within 6 months of land allotment
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The factory must become fully operational within 24 months
These measures aim to eliminate idle and non-functional industrial plots across the province.
Export-Based Incentives
Special incentives are proposed for export-oriented industries:
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80% export-based industries will qualify for special lease rates
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50% export-based units will receive a 40% discount
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However, the lease rate will not fall below PKR 100,000 per acre
Special Relief for Foreign and Green Investment
The policy also includes:
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Additional incentives for foreign direct investment (FDI)
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Special concessions for green and sustainable industries
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A 20% discount for industries set up in less developed districts
Land allotment will follow a “first come, first served” principle, while 20% of plots will be reserved for government-level foreign investment projects.
Revenue Expectations
Officials estimate the policy will generate:
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PKR 71 billion in immediate revenue
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PKR 251 billion in long-term revenue
Once approved, the policy will be implemented under the Special Economic Zones (SEZ) Act.
Conclusion
Authorities believe the new industrial lease policy will eliminate inactive plots, increase exports, and ensure sustainable industrial growth in Punjab. While land costs will rise, the government expects higher-quality investment and long-term economic benefits.
