Announces reduction in electricity tariffs of Rs4.04; Reduces the export refinancing program rate from 3% to 4.5%; Offers blue passports
Prime Minister Shehbaz Sharif addresses the country’s top exporters and business figures at a ceremony in Islamabad. Photo: APP
ISLAMABAD:
Prime Minister Shehbaz Sharif on Friday announced major relief measures for the industrial and export sectors, including a reduction in electricity tariff from Rs 4.04 per unit and transportation charges to less than Rs9 for industry, as well as a significant decrease in the Export Refinance Scheme rate from the current 7.5 per cent to 4.5 per cent and issuance of blue passports for major exporters for two years.
He said the government had allocated Rs 1,052 billion for the export refinancing scheme, of which Rs 900 billion had already been availed, adding that under this scheme, exporters were getting 3 per cent relief in the policy rate of the State Bank of Pakistan, which had now been further reduced to 4.5 per cent.
Addressing the Best Exporters Awards Ceremony for the year 2024-25, he said the government would offer blue passports to the exporters awarded at the ceremony for a period of two years, as part of its efforts to facilitate and encourage export-led growth.
The Prime Minister said Pakistan’s economic recovery and long-term stability depend on export-led growth and foreign direct investment (FDI) in export-oriented projects, emphasizing that business must play a central role in driving sustainable development.
He said stabilization alone was not enough and the country must now transition to sustainable, competitive and export-led growth. “There is no other way forward. Export-led growth is the only solution for Pakistan’s economic future,” he said.
Prime Minister Shehbaz stressed that future FDI would be encouraged only in export-oriented projects, which would help generate foreign exchange and strengthen the country’s reserves. “This is a win-win strategy. It boosts exports and attracts investments at the same time,” he added.
Paying tribute to exporters, the Prime Minister called them the backbone of the national economy and acknowledged their resilience and commitment for helping Pakistan overcome severe economic challenges. He recalled that by June 2023, Pakistan was on the brink of default, inflation was at 32% and the policy rate had peaked at 22%, causing immense hardship to investors, exporters and the business community.
He said that thanks to collective efforts, the economy had stabilized, with inflation now in single digits, the policy rate reduced to 10.5 percent and foreign exchange reserves doubled from three years ago, although he acknowledged that part of the reserves included support from friendly countries.
The prime minister reiterated Pakistan’s determination to reduce its dependence on external debt, saying “there is no respect for nations that beg for money.”
The Prime Minister said that currently, in the third quarter, the country’s foreign exchange reserves had doubled, but this also included loans from friendly countries. He acknowledged the support of China, Saudi Arabia, the United Arab Emirates and Qatar in stabilizing the economy during the crisis.
Prime Minister Shehbaz said that he along with Chief of Defense Force and Chief of Army Staff Field Marshal General Asim Munir had visited many countries for assistance.
He warned that stabilization without growth would not solve structural problems, pointing out that poverty and unemployment had increased and exports had failed to meet set targets.
He urged the business community to increase their investments and assured them that their recommendations would be implemented in letter and spirit.
Highlighting the importance of small and medium enterprises, Prime Minister Shehbaz called on banks to increase lending to SMEs to promote entrepreneurship and diversify the economy. He said Pakistan must abandon the boom-and-bust economic model, which repeatedly creates balance of payments crises.
The Prime Minister also emphasized tax compliance, warning industries against withholding taxes levied on consumers. He revealed that the government’s action against sugar mills had generated 50 billion rupees in additional tax revenue over the past year and vowed to continue strict enforcement.
He said the government had also controlled smuggling of petroleum products, which helped collect an additional Rs 125 billion annually as Petroleum Development Levy (PDL).
He gave credit for combating smuggling in the border areas to field martial artist Syed Asim Munir who had issued strict action orders against smugglers and their supporters.
On the digital economy, he said the government was prioritizing information technology exports and had set a target to increase information technology exports to $30 billion from the current $3 billion within five years. He commended IT Minister Shaza Fatima Khawaja for her efforts in this sector.
Prime Minister Shehbaz also recognized 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 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 top 30 leading exporters and bankers for their outstanding contribution to the national economy during the financial year 2024-25.
Awaïs Leghari
Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari on Friday said power tariffs for industries have been reduced by Rs 4.04 per unit under a special relief package announced by Prime Minister Muhammad Shehbaz Sharif.
In a statement shared on social media platform
He said removing this burden would also lead to reduction in transportation costs, with an average decrease of Rs 4.04 per unit under the cross-subsidization mechanism for industries.
With these measures, Leghari said, electricity would now be available to industrial consumers at around 11.5 cents per unit, a move expected to improve industrial competitiveness and support economic growth.
The minister credited the leadership and guidance of Prime Minister Muhammad Shehbaz Sharif 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, saying the initiative aligns with the government’s broader vision of ‘Uraan Pakistan’.
