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A power tariff cut has been announced by Prime Minister Shehbaz Sharif as part of a package of relief measures aimed at boosting industrial competitiveness and accelerating export-led growth.
Speaking at a special ceremony in Islamabad honouring leading businessmen and exporters, the Prime Minister detailed several incentives for the business community. The event was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers, prominent entrepreneurs, and award-winning exporters.
Relief Measures for Industries
In a key announcement, PM Shehbaz revealed a reduction of Rs4.04 per unit in electricity tariffs for industrial consumers. He further assured that wheeling charges—fees for using transmission networks—would be kept below Rs9 per unit. These steps are designed to lower production costs, enhance export competitiveness, and provide immediate relief to energy-intensive sectors.
The Prime Minister also directed the State Bank of Pakistan (SBP) Governor Jameel Ahmed to actively engage with business leaders and incorporate their feedback into future economic policies. He stressed that all policies would be formulated in close consultation with the private sector.
Export Promotion Initiatives
To support exporters, the government is slashing the export refinance scheme rate from 7.5% to 4.5%, offering cheaper financing for export-oriented businesses. PM Shehbaz announced that recipients of exporter awards at the ceremony would be granted blue passports, a privilege symbolising recognition of their contributions to the national economy.
He praised the business community for delivering strong export performance in 2025 despite challenging conditions, describing exporters as national heroes who worked tirelessly to bring pride to Pakistan.
Economic Recovery Highlights
Reflecting on the government’s achievements, the Prime Minister highlighted Pakistan’s journey from near-default to stability. He recalled the fragile economic situation upon assuming office, severe hardships faced by the common man, and the successful negotiation of an IMF programme in 2023.
Inflation is on a downward trajectory, providing much-needed relief to the economy, while the policy rate has been reduced sharply from a peak of 22% to around 10.5%, reflecting improving macroeconomic conditions, he noted. At the same time, foreign exchange reserves have doubled, strengthening the country’s external position and boosting market confidence. He further highlighted that sustained support from friendly countries, along with close coordination and unified efforts with the military leadership — including Field Marshal Asim Munir — played a crucial role in restoring economic stability and steering the country away from financial uncertainty.
PM Shehbaz credited difficult but necessary decisions for visible results and emphasised collective national sacrifices, particularly by the poor, during the stabilisation phase.
Reforms and Anti-Corruption Steps
The Prime Minister outlined aggressive reforms, including transparent privatisation of Pakistan International Airlines (PIA) and the shutdown of inefficient entities such as the Pakistan Works Department, utility stores, and Pasco due to poor performance and corruption.
He announced billions in expenditure cuts, stressed the need to reduce direct taxes immediately, and highlighted success in curbing petrol and sugar-related smuggling, crediting the military’s full support. The focus remains on priority sectors like textiles, leather, and digital industries to drive export-based growth.
Broader Vision for Growth
PM Shehbaz reiterated that the government does not aim to run businesses but to create a predictable, conducive environment led by the private sector. He welcomed proposals from business leaders and expressed confidence in Pakistan’s rising global standing post-“Marka-e-Haq,” noting warmer international attitudes and fresh investment opportunities.
With the entire cabinet and military working in unison, he affirmed that national dignity and development remain top priorities, paving the way for sustained progress.
The Power Tariff Cut and related incentives signal the government’s commitment to industrial revival and export acceleration amid ongoing economic recovery efforts.
