PM unveils industrial policy
called a "National Interest"

Three commitments to revive the sector

Prime Minister Nawaf Salam outlined the government’s commitments to support the industrial sector. He said that these are not just sectoral needs but a national interest tied to growth, jobs, financial stability, and economic sovereignty. He made the remarks while opening the second Lebanese Industrial Exhibition. He announced specific government commitments and described industrialists as partners in rebuilding the economy.

A show of resilience
Salam said that holding the exhibition after severe economic pressure and two consecutive wars is itself proof that the bet is still alive on national capabilities. He commended manufacturers for keeping their factories running and their workers employed in the hardest conditions, instead of leaving or waiting for better times. He said this deserves a response from the State in the form of policies that protect and build on that effort. He said that experience has shown an economy built only on consumption and rent stays exposed to the first shock.

Diagnosing the trade imbalance
The prime minister said that lasting recovery requires restoring the standing of the core productive sectors, with industry at the front. He pointed to the structural imbalance in the trade balance, which he said reflects an excessive reliance on imports. He said slogans will not fix it. Only higher local production and wider exports will. He described the partnership between the State and industrialists as resting on a clear formula. The State provides a fair and stable competitive environment, while the private sector invests, produces, innovates and creates jobs.

Security as a precondition
Turning to the State’s side of that bargain, he said sustainable stability cannot exist without sustainable security. He apologized for what might sound like repetition and said the basis remains the State extending its authority over all its territory with its own forces alone. “This was agreed by all parties when the national compact was renewed in the Taif Agreement,” he said. The government remains committed to the goal and will not retreat from it, because it is the necessary condition for the state to regain its role and indeed its very existence. “The government will not surrender to obstacles, whatever their source,” he said.

Fair competition and public procurement
On competition, Salam said an industrialist who obeys the law and pays what is owed cannot compete with smuggled goods or products dumped on the market. “Fighting dumping, smuggling and unfair competition is not protectionism,” he said. “It is a defense of fairness, equal opportunity, and the rules of legitimate competition,” he said. The Prime Minister said that the government has already begun tightening Customs enforcement and monitoring at border crossings. On public procurement, he promised to activate a preference for Lebanese products within the laws and agreements in force. “A State that does not buy from its own industrialists cannot ask them to invest inside the country,” he said.

Targeted incentives and import substitution
According to the Prime Minister, the government will adopt carefully designed investment incentives aimed at industries able to raise local value added and create jobs. The incentives will not be an arbitrary privilege but a tool that steers investment toward where it brings the greatest benefit to the economy and society. He also said the government will draw up policies to encourage local manufacture of goods the country imports in large quantities, where it can produce them at competitive quality and cost. He asked why Lebanon should import what it can make under those conditions.

Energy costs
Energy costs are among the heaviest burdens on manufacturers and tackling them will be a government priority. The aim is a more regular electricity supply at competitive prices. He said no industry can compete when its energy costs exceed those of its rivals. He told the audience to be confident that the government is working with all its energy on sustainable solutions to the energy crisis and said he hopes to announce them soon.

Exports and diplomacy
The prime minister said industrial exports, which approach $3 billion a year, are a main source of foreign currency. He called them proof that the Lebanese product can compete in demanding markets. The government is working to widen bilateral trade agreements and open new markets while making full use of existing agreements. Lebanese diplomatic missions will be given a bigger role in marketing national products and attracting industrial investment. Salam said the government will also study incentive mechanisms for companies that raise exports or enter new markets, because export success should be encouraged and rewarded.

Regional offshoring opportunity
The Prime Minister viewed Lebanon’s pool of engineering and technology talent and its internationally recognized education level as another opportunity. He said European and American companies are looking to diversify their production sites, so Lebanon can present itself as a regional base for offshoring in technology industries. He said this would mean quality jobs for young people and would help curb the emigration of engineers and other skilled workers, which he said has cost the country dearly. Achieving it requires cooperation between universities and industrial firms and a better link between vocational education and training and the needs of the labor market.

Green economy
The government does not see the green economy as an environmental obligation imposed on the country. He called it a chance to strengthen competitiveness and create new jobs. The government will encourage investment in renewable energy and clean industrial technology. It will also help companies adapt to international environmental standards, especially the requirements of European markets. He said firms that meet them open a wider door to those markets.

Commitments
Salam said he did not want to stop at general directions, because trust is built on commitments that can be tracked and held to account. He announced three. The first is a national program to stimulate local production and replace imports with competitive Lebanese products, coordinated among the relevant ministries. The second is a joint government mechanism to boost industrial exports through bilateral trade agreements, export incentives and the activation of economic diplomacy. The third is a program to attract investment in technology industries, targeting foreign companies that want to move part of their industrial activity to nearby friendly countries. He invited industrialists to follow the implementation of these steps and to take part in assessing them.