PM Shehbaz Sharif announces major electricity tariff relief

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday announced a major relief package for the industrial sector, including a reduction of Rs4.40 per unit in electricity tariffs, aimed at easing the burden of high power costs on businesses.

Addressing a ceremony held to honour leading exporters and businessmen in Islamabad, Prime Minister Shehbaz Sharif said the government was committed to providing a conducive environment for industry rather than running businesses itself.

Announcing additional relief measures, PM Shehbaz said wheeling charges for industries would be reduced to below Rs9 per unit. He added that if it were within his power, he would further cut tariffs by Rs10 per unit, but fiscal constraints limited the government’s options.

The prime minister also announced a significant cut in the Export Refinance Scheme (EFS) rate, reducing it from 7.5 percent to 4.5 percent, to provide cheaper working capital to exporters through the State Bank of Pakistan.

“I can say without any hesitation that our economy has now stabilised,” PM Shehbaz said.

He noted that inflation has come down to single digits, the policy rate stands at 10.5%, and foreign exchange reserves have doubled, although these include loans from friendly countries.

The prime minister acknowledged the support of friendly nations during difficult times, particularly China, Saudi Arabia, the UAE, and Qatar, stating that China rolled over billions of dollars for Pakistan.

He said the government had approached friendly countries with a clear economic and IMF-backed program and expressed gratitude for their continued assistance.

However, he admitted that challenges remain, including rising unemployment and slower-than-expected growth in exports. “While the economy has stabilised, conditions are not yet ideal,” he said, adding that further reductions in the policy rate were necessary to enhance industrial capacity.

Highlighting broader reforms, PM Shehbaz said the government was actively working to reduce taxes, curb smuggling, and cut unnecessary expenditures.

He revealed that action in the sugar sector generated Rs50 billion in additional revenue, while curbing petrol smuggling was now bringing in Rs12 billion per month.