Govt to ease business registration, expand SME support

July 27, 2026 (MLN): The government has reaffirmed its commitment to creating a business-friendly environment through simplified regulations, industrial development, SME facilitation and an expanded manufacturing base.

Federal Minister for Commerce Jam Kamal Khan expressed these views during a meeting with a delegation of the Islamabad Chamber of Small Traders and Small Industries (ICSTSI), which called on him to discuss issues relating to SMEs, taxation, industrial infrastructure, ease of doing business and export promotion, said a press release issued.

The delegation welcomed the State Bank of Pakistan's recent revision of its SME definition, calling it a positive step that would let more businesses qualify for financial support and formal sector incentives.

Jam Kamal said efforts were underway to simplify business registration through a more integrated, facilitative approach so entrepreneurs could complete regulatory requirements before starting commercial operations, adding that bringing more businesses into the formal economy required facilitation rather than added compliance burden.

The delegation noted that a large share of Pakistan's small business community remained self-financed and avoided formal registration due to complicated procedures, repeated audits and compliance costs, to which the minister said expanding the tax base through voluntary documentation, rather than pressuring existing taxpayers, remained a key policy objective.

Participants called for dedicated small industrial zones in Islamabad equipped with electricity, gas, water and road access, noting that many small manufacturers currently operated from residential areas and informal workshops due to the high cost of formal industrial units.

Jam Kamal agreed that organised industrial estates for SMEs would improve productivity, product quality, environmental compliance and employment, while supporting local manufacturing growth.

The meeting also touched on Pakistan's expanding food industry and the growing role of e-commerce, digital platforms and delivery services in creating new business opportunities, with the minister noting that the food and hospitality sectors had become important contributors to employment and economic activity.

The delegation urged the government to establish a modern slaughterhouse in Islamabad, saying an 8-hectare site had already been identified and planning completed, though the project remained delayed over administrative and environmental issues; they said such a facility would improve hygiene, food safety, traceability and the quality of halal meat exports.

The minister acknowledged the importance of strengthening the livestock value chain, noting that proper utilisation of by-products such as hides, bones, fats and blood could generate significant economic value while cutting environmental waste.

The chamber also raised the need for a 100-acre industrial project through a public-private partnership involving the federal government, the Punjab government and the private sector.

Jam Kamal welcomed the proposal and encouraged the business community to bring forward commercially viable, investment-ready projects, saying public-private partnerships, technological advancement and industrial diversification would be vital to strengthening manufacturing, boosting exports and generating sustainable employment.

He reaffirmed that the Ministry of Commerce would continue engaging with the business community to identify practical solutions and build a more competitive, export-oriented economy.

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