Leadership vacuum crippling industrial policy
The Senate Standing Committee on Industries and Production has exposed a governance failure that Pakistan cannot afford to ignore. The Export Processing Zones Authority has been running without a permanent chairman for an extended period. This is not a minor administrative gap. It is a warning sign of how casually the government treats institutions that are meant to drive industrial growth and attract investment.
Senator Saleem Mandviwalla was right to raise alarm during the committee session. Leadership vacuums do not just delay paperwork. They shake investor confidence, stall strategic decisions, and put Pakistan at risk of falling short on commitments made under the IMF Extended Fund Facility. The phase-out of incentives and restrictions on EPZ sales to the domestic market are not small technical details. They are conditions tied directly to Pakistan’s economic credibility on the world stage.
The situation around the draft Automotive and Auto Parts Manufacturing Policy 2026-31 tells a similar story. The policy has admirable goals. It wants to promote New Energy Vehicles, increase domestic value addition, and boost exports. But good intentions are not enough. Local manufacturers are being squeezed by high tariffs on raw materials and steep duties that put them at a serious disadvantage. Without resolving these operational bottlenecks first, the policy risks becoming another document full of promises that never translate into results on the ground.
The government must understand that ambition without execution is meaningless. If domestic producers cannot compete because of avoidable cost disadvantages, foreign competitors will fill the gap while Pakistan’s own industry falls further behind.
It is encouraging that the committee has directed stakeholders to submit formal grievances and scheduled a follow-up session with the Ministry of Commerce and the Ministry of Industries and Production. But scheduling meetings is not the same as solving problems. The government must move quickly to appoint permanent leadership at the EPZ Authority and address the structural issues raised by industry representatives.
The country does not have the luxury of time. Every delay chips away at investor confidence and puts the country’s IMF compliance and international trade credibility further at risk. The government must take stock of this situation now, before it becomes yet another missed opportunity for industrial growth.