Announces Rs4.04 Power Tariff Cut; Cuts the export refinancing rate by 3% to 4.5%; Offers blue passport
Prime Minister Shehbaz Sharif addresses the country’s top exporters and businessmen at a ceremony in Islamabad. Photo: APP
ISLAMABAD:
Prime Minister Shehbaz Sharif on Friday announced major relief measures for industries and export sectors, including a reduction in electricity tariffs by Rs 4.04 per
He said the government had earmarked Rs 1,052 billion for the export refinancing scheme, of which Rs 900 billion had already been utilised, adding that exporters under the scheme availed three per cent relief on the State Bank of Pakistan policy rate, which had now been further reduced to 4.5 per cent.
Speaking at the award ceremony of top exporters for the year 2024-25, he said the government would offer blue passports to exporters awarded during the ceremony for a period of two years as part of its efforts to facilitate and encourage export-led growth.
The prime minister said that Pakistan’s economic revival and long-term stability depends on export-led growth and foreign direct investment (FDI) in export-oriented projects, stressing that business must play a central role in driving sustainable development.
He said that stabilization alone was not enough and that the country now needs to transition to growth that is sustainable, competitive and export-driven. “There is no other way forward. Export-led growth is the only solution for Pakistan’s economic future,” he said.
Prime Minister Shehbaz emphasized that future FDI would be encouraged only in export-led projects, which would help generate foreign exchange and strengthen the country’s reserves. “This is a win-win strategy. It increases exports and attracts investment at the same time,” he added.
Paying tribute to the exporters, the Prime Minister called them the backbone of the national economy and credited their resilience and commitment for helping Pakistan navigate through severe economic challenges. He recalled that as of June 2023, Pakistan was on the verge of default, inflation was at 32 percent and the policy interest rate had peaked at 22 percent, causing enormous difficulties for investors, exporters and the business community.
He said that through a collective effort, the economy had stabilized, with inflation now in the double digits, the policy rate reduced to 10.5 percent and foreign exchange reserves doubled from three years ago, although he acknowledged that some of the reserves included support from friendly countries.
The prime minister reiterated Pakistan’s resolve to reduce dependence on foreign debt, stating that “there is no respect for nations that beg for money.”
The Prime Minister said that at this moment, in the 3rd quarter, the country’s foreign exchange reserves had doubled, but it also included loans from friendly countries. He acknowledged the support of China, Saudi Arabia, the UAE and Qatar in stabilizing the economy during the crisis.
Prime Minister Shehbaz said he along with Chief of Defense Forces and Chief of Army Staff Field Marshal Asim Munir went to many countries for help.
He warned that stabilization without growth would not solve structural problems, noting that poverty and unemployment had risen and exports had fallen short of set targets.
He urged the business community to increase investment and assured them that their recommendations would be implemented in letter and spirit.
Highlighting the importance of small and medium enterprises, Prime Minister Shehbaz urged banks to increase lending to SMEs to promote entrepreneurship and diversify the economy. He said that Pakistan needs to abandon the economic model of boom-and-bust which repeatedly creates balance of payments crises.
The prime minister also laid emphasis on compliance with tax laws and warned industries against withholding tax collected from consumers. He revealed that the government’s action against sugar mills had resulted in Rs50 billion in additional tax revenue over the last year and promised to continue strict enforcement.
He said the government had also checked smuggling of petroleum products, which helped in collection of additional Rs 125 billion revenue per year as Petroleum Development Levy (PDL).
He attributed the credit of curbing smuggling in border areas to field warrior Syed Asim Munir, who had issued orders for strict action against smugglers and their followers.
On the digital economy, he said the government prioritized IT exports and had set a target to increase IT exports to $30 billion from the current $3 billion within five years. He praised IT Minister Shaza Fatima Khawaja for her efforts in this sector.
Prime Minister Shehbaz also acknowledged the contributions of Deputy Prime Minister Ishaq Dar and several cabinet members for their role in economic reforms, privatization and export promotion, terming the progress as a result of teamwork and selfless service.
Commerce Minister Jam Kamal Khan, speaking on the occasion, said that Pakistan had emerged from a turbulent economic phase and was regaining international recognition due to the Prime Minister’s vision and close engagement with the business community.
At the ceremony, the Prime Minister presented awards to the top 30 exporters and leading bankers for their outstanding contribution to the national economy in the financial year 2024-2025.
Awais Leghari
Union Minister for Power Division Sardar Awais Ahmed Khan Leghari said on Friday that electricity tariffs for industries have been reduced by Rs 4.04 per kWh. unit under a special relief package announced by Prime Minister Muhammad Shehbaz Sharif.
In a statement shared on social media platform X, the minister said the financial burden on industrial electricity bills, which stood at Rs 8.90 per unity at the beginning of the government’s tenure, has now been reduced to zero.
He said removing this burden would also lead to a reduction in road charges with an average drop of Rs 4.04 per kilometre. unit under the cross-subsidy mechanism for industries.
As a result of these measures, Leghari said, electricity would now be available to industrial consumers at approximately 11.5 cents per hour.
The minister credited Prime Minister Muhammad Shehbaz Sharif’s leadership and guidance for the decision, saying the relief package reflects the government’s commitment to revive the industry and reduce production costs.
Concluding his message, Leghari expressed optimism about the country’s economic direction and said the initiative is in line with the government’s broader vision of “Uraan Pakistan”.
