The Punjab government has decided to discontinue its policy of offering industrial land at heavily subsidized rates and has introduced a new lease framework aimed at promoting serious investment and sustainable economic growth.
Under the revised policy, industrial land will now be leased at prices closer to the actual market value. Officials say this move is intended to discourage land speculation, attract committed investors, and boost industrial productivity and exports across the province.
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According to the new rules, lease rates in industrial estates are expected to increase significantly, rising from around Rs 43,000 per acre to approximately Rs 125,000 per acre. In addition, lease charges will be subject to a 5 percent annual increase, reflecting market trends and inflation.
The policy also places stricter investment obligations on investors. Companies acquiring industrial land will be required to invest at least 15 million US dollars per acre within two years. Furthermore, construction on the allotted land must begin within six months, ensuring timely development and preventing plots from remaining unused.
To balance the stricter terms, the government has proposed special incentives for key sectors. Export-oriented industries, foreign investors, and environmentally friendly or green industries will receive preferential treatment and support to encourage sustainable and high-value industrial growth.
Officials believe the new lease policy will help strengthen Punjab’s industrial base, increase exports, and create long-term employment opportunities, while ensuring that industrial land is used productively rather than held for speculative purposes.
