Industrial shutdown in Daroghawala sparks economic and environmental debate

LAHORE: The Punjab environmental department’s decision to shut down 200 to 250 industries in the Daroghawala Industrial Area has triggered a significant backlash from local businesses. A delegation of 200 industrialists from the area approached the Lahore Chamber of Commerce and Industry (LCCI) seeking intervention and support.

During a meeting with industrialists, LCCI President Mian Abuzar Shad listened to their grievances, which included allegations of corruption and extortion by the environmental department, reportedly amounting to millions of rupees.

LCCI office-bearers expressed concerns that the closures could adversely affect economic activity and the livelihoods of thousands of workers. They emphasised the critical role played by industries in North Lahore, where over 1,600 operational units employ more than 25,000 workers. These industries contribute approximately Rs15 billion in daily financial activity and paid Rs2.17 billion in electricity bills to Lahore Electric Supply Company (Lesco) in October 2024 alone.

The LCCI representatives called on the government to differentiate between compliant and non-compliant businesses, allowing the former to continue operations while ensuring environmental regulations are enforced on the latter. They warned that indiscriminate restrictions could lead to widespread factory closures, significant job losses and an economic downturn in the region.

“The LCCI fully supports the government’s environmental objectives. However, it is crucial that regulations are implemented judiciously to balance environmental protection with economic sustainability,” said Abuzar Shad.