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ISLAMABAD, July 29, 2026: Federal Minister for Commerce Jam Kamal Khan reaffirmed the government’s commitment to improving Pakistan’s business environment by simplifying regulations, supporting small and medium enterprises (SMEs), and expanding the country’s manufacturing base.
The minister made the remarks during a meeting with a delegation from the Islamabad Chamber of Small Traders and Small Industries (ICSTSI). The two sides discussed issues related to SMEs, taxation, industrial infrastructure, exports, and the ease of doing business.
The delegation welcomed the State Bank of Pakistan’s revised definition of SMEs, saying the move would allow more businesses to qualify for financing and government incentives.
Jam Kamal said the government is working to remove unnecessary regulations and modernize business processes through digitalization and institutional reforms. He added that outdated procedures and overlapping rules must be phased out to encourage entrepreneurship and investment.
He also said authorities are simplifying business registration through a more integrated system. The goal, he added, is to help entrepreneurs complete regulatory requirements before starting operations. Bringing more businesses into the formal economy, he said, requires facilitation rather than additional compliance burdens.
Meanwhile, the delegation noted that many small businesses remain self-financed and avoid formal registration because of complex procedures, repeated audits, and high compliance costs. Jam Kamal said the government aims to broaden the tax base by encouraging voluntary documentation instead of placing additional pressure on existing taxpayers.
The meeting also focused on industrial infrastructure. The delegation urged the government to establish dedicated industrial zones for SMEs, particularly in Islamabad, with access to electricity, gas, water, and road networks. Many small manufacturers, they said, currently operate from residential areas because formal industrial units remain too expensive.
Jam Kamal agreed that organized industrial estates would improve productivity, product quality, environmental compliance, and job creation while strengthening local manufacturing.
The participants also discussed the rapid growth of Pakistan’s food industry and the increasing role of e-commerce and digital platforms. The minister said the food and hospitality sectors have become major contributors to employment and economic activity, with significant room for further growth.
In addition, the delegation called for the establishment of a modern slaughterhouse in Islamabad. It said an eight-hectare site has already been identified, but administrative and environmental issues have delayed the project. A modern facility, it added, would improve hygiene, food safety, traceability, and halal meat exports.
Jam Kamal acknowledged the proposal and said better utilization of animal by-products, including hides, bones, fats, and blood, could generate additional economic value while reducing waste.
The chamber also proposed developing a 100-acre industrial project through a public-private partnership involving the federal government, the Punjab government, and the private sector.
The minister welcomed the proposal and encouraged businesses to submit commercially viable projects. He said public-private partnerships, technological innovation, and industrial diversification will play a key role in boosting manufacturing, increasing exports, and creating sustainable employment.
He reaffirmed that the Ministry of Commerce will continue engaging with the business community to support SMEs, attract investment, and build a more competitive, export-oriented economy
