Muhammad Faisal Kaleem

The Finance Division has provided a total of Rs335 billion subsidy to the Ministry of Industries and Production (MoI&P) in the current financial year for large-scale industries and small and medium enterprises (SMEs) to ensure industrial growth, overall productivity, economic stability, and job creation.

According to the documents available with Wealth Pakistan, large-scale industries have been provided with a subsidy of Rs287 billion, making 72% of the total industrial subsidies, and SMEs Rs48 billion.

These allocations reflect the Finance Division’s broader fiscal strategy, macroeconomic considerations, and sectoral priorities at the national level, and are expected to provide significant relief to key industrial sectors facing high input costs and financial pressure.

The Rs248 billion allocation for large-scale industries is intended to sustain industrial growth, boost exports, and improve overall productivity. By covering energy-related and operational costs, the subsidy may help industries remain competitive in regional and global markets.

Similarly, the Rs48 billion financial support for the SMEs is expected to strengthen this sector, which plays a vital role in job creation and economic stability. In addition to the subsidies for large-scale industries and SMEs, the Finance Division has provided a total subsidy of Rs24 billion to the MoI&P, including Rs15 billion as sugar subsidy arrears and Rs9 billion for the EV scheme.

According to MoI&P officials, the provision of sugar subsidy arrears will help improve the cash flow of sugar mills, enabling them to clear dues of farmers and workers for smooth operations, particularly in the upcoming crushing season. This step is also likely to stabilize sugar prices in the domestic market and reduce supply disruptions.

The allocation for the EV scheme is aimed at promoting a clean and environment-friendly transport in the country. The subsidy is expected to encourage local manufacturing and adoption of EVs, reduce fuel import bills, and support Pakistan’s climate goals.

Industry experts believe this initiative will create new business opportunities, attract private investment, and generate skilled employment in the auto and energy sectors.

According to the experts, overall, the subsidy framework reflects the government’s efforts to revive industrial activity, support economic growth, and address structural challenges faced by key sectors of the economy.

Credit: INP-WealthPk