In any economy, the state primarily serves as a facilitator, responsible for creating a stable and predictable environment in which businesses can invest, produce and compete. The incumbent federal government led by Prime Minister Muhammad Shehbaz Sharif has emphasised export-led growth anchored in the Small and Medium Enterprises sector, workforce skill development, technological upgradation, industrial infrastructure expansion and the establishment of Special Economic Zones. The broader objective is to enhance productivity and competitiveness of locally manufactured products in international markets while attracting foreign direct investment and expanding market access through structured government-to-government and business-to-business engagement.During the ongoing financial year 2025-26, the government has attempted to balance immediate stabilisation measures with short, medium and long-term structural reforms. Macroeconomic stabilisation alone cannot deliver growth unless accompanied by policy continuity, institutional efficiency and regulatory predictability. Political stability, effective governance and regional cooperation therefore remain indispensable prerequisites for sustained economic expansion.Despite these intentions, manufacturing, commerce and mineral sectors continue to face persistent structural constraints. These include limited product and market diversification, inconsistent policy implementation, tariff distortions, restricted credit access for SMEs, low productivity, high business costs, energy shortages, inadequate infrastructure, outdated technology and insufficient investment in research and development. Addressing these constraints requires strategic overhauling aimed at boosting productivity, competitiveness and export orientation while increasing the contribution of manufacturing and mineral sectors to GDP.Pakistan retains a natural comparative advantage in textiles. The Ministry of Commerce should prioritise modernisation through public-private partnerships, promote value-added products such as apparel, home textiles and technical textiles, and strengthen supply chains from raw material to finished export. Incentives for technological adoption, design capability and training can also support domestic production of consumer electronics and home appliances through more effective utilisation of Export Development Fund resources.The Ministry of Industries and Production must encourage localisation of electric vehicles and supporting infrastructure to reduce fuel import dependence and prepare industry for global transition. Industrial policy should promote energy-efficient machinery, waste-recycling systems and environmentally responsible manufacturing processes. Circular economy practices, improved product design for recyclability and responsible sourcing of raw materials can simultaneously enhance sustainability and competitiveness.Strengthening domestic supply chains in steel, chemicals and textiles would reduce import dependence and stabilise production costs. Integrated supply networks linking manufacturers, suppliers and logistics providers can improve efficiency and reduce wastage. Advisory councils and continuous consultation with industry stakeholders should guide policy adjustments and ensure practical implementation.Ultimately, sustained collaboration between public and private sectors remains essential. Public-private partnerships can drive infrastructure development, technology transfer, innovation and export diversification. Sector-specific reforms, if implemented consistently and insulated from policy reversals, can transform industrial capacity into long-term economic resilience and growth.

Muhammad Zahid RifatThe writer is Lahore-based Freelance Journalist, Columnist and retired Deputy Controller (News), Radio Pakistan, Islamabad and can be reached at zahidriffat@gmail.com

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