By Ayesha Mudassar ISLAMABAD, March 14 (INP-WealthPK): The prime minister’s announcement of an industrial package will help boost export-oriented industries, revive the sick units and promote long-term economic growth. The package is laden with incentives for promoting investments in small and medium enterprises and restoring sick units. The package includes a five-year tax exemption to overseas Pakistanis, and a cut in tax rate by widening the tax base. In addition, no questions will be asked about the source of money. While announcing the package recently, Prime Minister Imran Khan emphasised the importance of industrialisation in attracting both foreign and local investment. He said that no country could progress by selling vegetables and wheat. The growing large-scale manufacturing (LSM) sector is the confirmation of his government’s efforts to boost industrialisation and implement policies aimed at wealth-creation and profit-earning. According to the Quantum Index of Large-Scale Manufacturing Industries (QIM), the output increased by 6.4% for December 2021 compared to December 2020, and 10.5% compared to November 2021. According to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the country's economic development is directly linked with the development of the industrial sector. The incentive package has potential to attract an investment of $3-5 billion in the industrial sector. To make manufacturers and exporters competitive in international markets, the government should also implement legal, regulatory and energy reforms, as well as reduce bureaucratic red tape. Commenting on the industrial package, Dr Mahmood Khalid, a senior research economist at Pakistan Institute of Development Economics (PIDE), told WealthPK that there is a dire need to establish a strong industrial and manufacturing base in the country to enhance growth. “The introduction of the industrial package is a good step as industries that are not performing well due to a lack of investment in research and development would greatly benefit from this.” “The revival of sick industrial units will generate job opportunities, provide a revenue base for the future, and enhance the country's capacity to export. So, it's a win-win situation,” he noted. “The grant of a five-year tax holiday to foreign investors will push industrialisation in the country and strengthen efforts to support private capital investment in the manufacturing businesses. The package will enable overseas Pakistanis to invest both in joint ventures and individual businesses, thus boosting domestic productivity and exports,” he added. The PIDE’s research economist informed WealthPk that investment in SMEs is direly needed. “But the issue with such investments is that most of the SMEs function in the informal sector as they are not registered with FBR and other authorities such as social securities.” Mahmood Khalid said massive employment opportunities exist in the SME sector and they can play a significant role in promoting economic growth and exports if streamlined.  “Regulations need to be revised and strengthened to allow greater participation of the SME sector in Pakistan’s formal economy.” Industry plays a significant part in a country's economic development. One of the main reasons for Pakistan's low exports is a lack of industrialisation. However, the industrial package is likely to encourage investment, accelerate industrial expansion, facilitate introduction of new technologies, boost overall economic activity, and put the economy on a high-growth trajectory. Without increasing and diversifying industrial production, no country can grow economically, create jobs or alleviate poverty.