The Punjab government has announced a Rs300 billion financing programme for businesses this year, offering loans at different mark-up rates to support industrial and commercial activity across the province. Punjab Minister for Industries and Commerce Chaudhry Shafay Hussain said the programme would provide interest-free financing of up to Rs100 million, while larger loans would carry mark-up rates of 3% or 5%, depending on the financing amount. The initiative is intended to improve businesses’ access to capital and support investment in industrial and commercial operations.
The minister announced the programme while chairing a meeting of the Board of Directors of the Punjab Small Industries Corporation (PSIC) at PSIC House on Davis Road in Lahore. The board reviewed a one-point agenda and took several decisions related to industrial development, business financing and infrastructure improvements. The meeting also discussed legal proceedings concerning employee pensions and progress on small industrial estates in the province. The decisions form part of the provincial government’s efforts to expand industrial facilities and facilitate business activity.
Under the financing programme, businesses seeking loans of up to Rs100 million will be eligible for interest-free financing, according to the announcement. Loans ranging from Rs100 million to Rs1 billion will carry a 3% mark-up, while financing amounts between Rs1 billion and Rs5 billion will be subject to a 5% mark-up. The tiered structure provides different financing terms according to the size of the loan, with the lowest financing category receiving interest-free support. The announcement did not specify the programme’s detailed eligibility criteria, application deadlines, repayment periods or the sectors that will receive priority.
Chaudhry Shafay Hussain also said that interest-free loans were already being provided through the Chief Minister’s Asaan Karobar Finance Scheme. The scheme is intended to provide financing support to businesses, while the newly announced Rs300 billion programme sets out additional financing categories for different loan sizes. Access to affordable capital can be important for businesses seeking to establish operations, expand production, purchase equipment or strengthen working capital. However, the practical impact of the programme will depend on its implementation, eligibility requirements and the ability of businesses to secure financing under the announced terms.
The PSIC board also approved filing an appeal before the Federal Constitutional Court against a decision concerning employee pensions. The minister said the ruling issued by a division bench of the Lahore High Court would be challenged in the federal court. The pension matter was among the decisions discussed during the meeting, alongside measures relating to industrial development. No further details about the legal grounds of the proposed appeal or its expected timeline were included in the announcement.
Infrastructure development in small industrial estates was another priority raised during the meeting. The minister directed officials to accelerate work on improving infrastructure across 24 small industrial estates in Punjab. Industrial estates provide designated locations for businesses and manufacturing units, with infrastructure such as roads and other essential facilities supporting commercial operations. Improvements at these sites can help businesses operate more efficiently and make industrial areas more suitable for investment. The announcement did not provide a detailed breakdown of the planned infrastructure works or their completion schedules.
The meeting was also informed that the first small industrial estate had been established in Mandi Bahauddin. Plots at the estate will be allotted through a fully online process, allowing applicants to complete the allocation process digitally. According to the announcement, 20% of the plots have been reserved for overseas Pakistanis. The online allocation process is intended to provide a digital route for applicants seeking plots, while the reserved share creates an opportunity for overseas Pakistanis interested in investing in industrial property in the province. Details about plot prices, application dates and allocation conditions were not provided.
The financing programme and industrial estate measures represent separate elements of Punjab’s broader approach to supporting business activity. The loan structure offers interest-free financing for amounts up to Rs100 million, with mark-up rates of 3% and 5% for progressively larger financing categories. Meanwhile, infrastructure improvements across 24 industrial estates and the online plot allocation process in Mandi Bahauddin are aimed at strengthening the facilities available to businesses. The success of these initiatives will depend on the speed of implementation and the extent to which eligible businesses can access financing and industrial infrastructure.
Through the Rs300 billion programme, the provincial government aims to provide businesses with access to financing on terms linked to loan size, while continuing support under the Asaan Karobar Finance Scheme. The decisions taken at the PSIC meeting also cover infrastructure development, industrial land allocation and the pension-related legal appeal. Together, these measures set out the province’s planned actions to facilitate investment and expand industrial activity, although further programme details will be needed to clarify how businesses can apply and when financing will become available.
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