PM Shahbaz announced reduction in electricity tariffs by Rs 4.04 per unit for industry

APP

Islamabad: Prime Minister Muhammad Shehbaz Sharif on Friday unveiled a wide-ranging relief package for the industrial and export sectors, including a reduction in electricity tariffs by Rs4.04 per unit, a cut in wheeling charges to below Rs9 for industry, and a significant decrease in the export refinance scheme rate from 7.5 per cent to 4.5 per cent.

The prime minister also announced the issuance of blue passports for leading exporters for a period of two years, as part of the government’s strategy to promote export-led growth.

Export refinance scheme expanded

Addressing the award ceremony for top exporters for the year 2024–25, PM Shehbaz said the government had allocated Rs1,052 billion for the export refinance scheme, of which Rs900 billion had already been utilised.

Under the scheme, exporters were already availing a three per cent concession on the State Bank of Pakistan’s policy rate, which has now been further reduced to 4.5 per cent to ease financing costs and improve competitiveness.

Export-led growth central to economic revival

The prime minister stressed that Pakistan’s economic revival and long-term stability depend on export-led growth and foreign direct investment in export-oriented projects. He said stabilization alone was insufficient and the country must now transition towards sustainable, competitive growth.

“There is no other way forward. Export-led growth is the only solution for Pakistan’s economic future,” he said, adding that future foreign investment would be encouraged primarily in export-driven sectors.

FDI to focus on export-oriented projects

PM Shehbaz said encouraging foreign direct investment in export-led projects would help generate foreign exchange while strengthening reserves. He described the approach as a “win-win strategy” for both investment inflows and export expansion.

Tribute to exporters amid economic challenges

Paying tribute to exporters, the prime minister termed them the backbone of the national economy and credited their resilience for helping Pakistan navigate severe economic challenges.

Recalling the economic crisis of June 2023, he said Pakistan was on the brink of default, inflation had reached 32 per cent, and the policy rate stood at 22 per cent, creating immense difficulties for businesses and investors.

Economic stabilization and current outlook

He said collective efforts had helped stabilize the economy, with inflation now in single digits, the policy rate reduced to 10.5 per cent, and foreign exchange reserves doubling compared to three years ago. He acknowledged that part of the reserves included support from friendly countries.

The prime minister reiterated Pakistan’s resolve to reduce reliance on external debt, stating that “there is no respect for nations that beg for money.”

Support from friendly countries

PM Shehbaz acknowledged the support extended by China, Saudi Arabia, the UAE, and Qatar during the economic crisis, noting that he, along with senior military leadership including Chief of Army Staff Field Marshal General Asim Munir, personally reached out to several countries for assistance.

Warning against growth without reforms

He warned that stabilization without growth would not address structural economic issues, noting that poverty and unemployment had increased while exports had fallen short of targets.

The prime minister urged the business community to increase investment and assured them that their recommendations would be implemented in letter and spirit.

Focus on SMEs and tax compliance

Highlighting the importance of small and medium enterprises, PM Shehbaz called on banks to enhance lending to SMEs to promote entrepreneurship and economic diversification. He said Pakistan must move away from the boom-and-bust economic model that repeatedly triggers balance-of-payments crises.

He also stressed tax compliance, warning industries against withholding taxes collected from consumers. He said government action against sugar mills resulted in Rs50 billion in additional tax revenue over the past year.

Anti-smuggling measures and revenue gains

The prime minister said strict action against petroleum smuggling had generated an additional Rs125 billion annually through the Petroleum Development Levy. He credited border enforcement measures to Field Marshal Asim Munir, who ordered decisive action against smugglers and their facilitators.

IT exports and digital economy

On the digital economy, PM Shehbaz said the government was prioritising information technology exports, with a target to raise IT exports to $30 billion from the current $3 billion within five years. He praised IT Minister Shaza Fatima Khawaja for her efforts in advancing the sector.

Teamwork behind economic reforms

The prime minister acknowledged the contributions of Deputy Prime Minister Ishaq Dar and several cabinet members for their role in economic reforms, privatization, and export promotion, calling the progress a result of teamwork and selfless service.

Commerce Minister Jam Kamal Khan, addressing the ceremony, 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.

Awards presented to exporters

At the ceremony, PM Shehbaz presented awards to the top 30 exporters and leading bankers for their outstanding contribution to the national economy during the fiscal year 2024–25.