Punjab Approves Rs2.7 Billion Overhaul of 23 Small Industrial Estates

By Muhammad Shahzad
Lahore, April 1, 2026: The Punjab government on Wednesday approved a comprehensive upgradation plan for 23 small industrial estates across the province at an estimated cost of Rs2.7 billion. The package focuses on providing missing infrastructure, utilities, access roads, and essential industrial facilities to enhance efficiency and productivity.
The decisions were taken during the 134th Board meeting of the Punjab Small Industries Corporation (PSIC), chaired by Provincial Minister for Industries and Commerce Chaudhry Shafay Hussain at PSIC House, Lahore.
To support traditional industries, the board approved the upgradation of handicrafts shops and the establishment of a dedicated handicrafts bazaar in Lahore. Two new schemes were also introduced under which craftsmen and artisans will be eligible for interest-free loans of up to Rs500,000.
The meeting decided to establish an Evaluation and Monitoring Unit at PSIC headquarters for stronger oversight. A topographic survey of all small industrial estates in Punjab will also be conducted to aid future planning and development.
Key approvals included the proposed PSIC Estate Development, Management and Immovable Property Rules 2026 (final approval to be sought from the provincial cabinet), formation of Boards of Management for small industrial estates in Khanewal, Mian Channu, and Sahiwal, and a needs assessment study for new estates in Okara, Toba Tek Singh, Sahiwal, Hafizabad, and Pakpattan.
The board also approved hiring a contractor to start civil works at Quaidabad Small Industrial Estate. Issues related to cancelled plots in Sialkot Industrial Estate Phase-II and the Export Processing Zone will be resolved in consultation with the Sialkot Chamber of Commerce and Industry.
Addressing the meeting, Chaudhry Shafay Hussain said the approval of rules for small industrial estates is a major step towards strengthening industrial infrastructure in Punjab. He emphasized effective monitoring during implementation and directed officials to explore collaboration with the World Bank for environmental protection measures in industrial zones.
The meeting reviewed a 12-point agenda aimed at improving governance, ensuring full colonisation of existing zones, and addressing long-standing regulatory and administrative gaps.
Managing Director PSIC gave a detailed briefing on all agenda items. Secretary Industries, PSIC directors, and board members attended the meeting.
This initiative signals the Punjab government’s structured and forward-looking approach to industrial development, with a focus on timely implementation, better governance, and attracting both domestic and foreign investment.