PM Announces Cheaper Electricity and Loans for Export Sector

Prime Minister Shehbaz Sharif on Friday announced a reduction in industrial wheeling charges, cutting the cost by Rs. 4.04 per unit as part of a package aimed at supporting exporters and reviving industrial activity.

The prime minister said wheeling charges, which previously stood at Rs. 12.55 per unit, have now been reduced to Rs. 8.51 per unit. He added that the government has also decided to further reduce wheeling charges for industries by Rs. 9 per kilowatt hour to improve competitiveness.

As part of the announced relief, the export refinance rate has been cut by 300 basis points to 4.5 percent from 7.5 percent. The prime minister said this step was taken to provide cheaper credit to exporters competing in highly price-sensitive global markets.

Addressing leading exporters and business figures, PM Shehbaz outlined multiple measures to move Pakistan’s economy from stabilization toward sustained, export-led growth. He said the government was focused on easing cost pressures faced by industries, particularly electricity tariffs and financing costs.

He also announced a reduction in industrial electricity tariffs by Rs. 4.04 per unit and said the government aims to further lower power costs by up to Rs. 10 per unit in the future.

PM Shehbaz said the government will introduce blue passports for top performing exporters, valid for two years, to facilitate international travel and ease business operations.

Recalling recent economic challenges, the prime minister said Pakistan faced galloping inflation and a policy rate of 22 percent, but government measures have brought inflation down to single digit levels, while the policy rate now stands at 10.5 percent.

He noted that Pakistan narrowly avoided a sovereign default after negotiations with the International Monetary Fund and said foreign exchange reserves have doubled in recent months, largely supported by loans from friendly countries including China, Saudi Arabia, the UAE and Qatar.

Despite achieving economic stability, PM Shehbaz acknowledged that poverty and unemployment have increased, while exports remain stagnant. He said high electricity costs and elevated interest rates continue to undermine exporters’ ability to compete globally.

The prime minister stressed that businesses should be led by the private sector and said Pakistan must move toward sustainable, export driven growth. He added that direct taxes should be lowered to support industry, while the government would continue to strictly collect indirect taxes.

Earlier, awards were presented to exporters who made significant contributions to the national economy.