ISLAMABAD, Jan 30 (APP): Prime Minister Muhammad Shehbaz Sharif on Friday announced major relief measures for the industrial and export sectors, including a reduction in electricity tariffs by Rs 4.04 per unit, a cut in wheeling charges to below Rs 9 per unit for industry, and a significant reduction in the export refinance scheme rate from 7.5 percent to 4.5 percent.
Addressing an award ceremony for top exporters for the year 2024–25, the prime minister said the government had allocated Rs 1,052 billion for the export refinance scheme, of which Rs 900 billion had already been utilized. He said exporters were earlier availing a three percent relief on the State Bank of Pakistan’s policy rate, which had now been further reduced to 4.5 percent to enhance competitiveness.
As part of incentives to promote export-led growth, Prime Minister Shehbaz announced the issuance of blue passports for leading exporters for a period of two years, saying the move would facilitate their international business travel and engagement.
He said Pakistan’s economic revival and long-term stability depended on export-led growth and foreign direct investment in export-oriented projects, stressing that stabilization alone was not enough. “Export-led growth is the only sustainable path forward for Pakistan’s economy,” he said, adding that future foreign investment would be encouraged primarily in projects that generate exports and foreign exchange.
Paying tribute to exporters, the prime minister described them as the backbone of the national economy and credited their resilience for helping the country navigate severe economic challenges. He recalled that in June 2023 Pakistan was on the brink of default, with inflation at 32 percent and the policy rate at 22 percent, which severely impacted businesses and investors.
He said collective efforts had helped stabilize the economy, with inflation now in single digits, the policy rate reduced to 10.5 percent, and foreign exchange reserves doubled compared to three years ago, though he acknowledged the support of friendly countries including China, Saudi Arabia, the UAE, and Qatar.
Prime Minister Shehbaz reiterated his resolve to reduce dependence on external borrowing, warning that stabilization without growth would worsen poverty and unemployment. He urged the business community to increase investment and assured them that their recommendations would be implemented.
Highlighting the role of small and medium enterprises, he called on banks to expand lending to SMEs to promote entrepreneurship and economic diversification. He also emphasized tax compliance, noting that strict action against tax evasion, including in the sugar sector, had generated an additional Rs 50 billion in revenue over the past year.
The prime minister said curbs on petroleum smuggling had resulted in an additional Rs 125 billion annually through Petroleum Development Levy, crediting strict enforcement in border areas for the improvement. On the digital economy, he said the government aimed to raise IT exports to $30 billion from the current $3 billion within five years.
Commerce Minister Jam Kamal Khan said Pakistan was emerging from a difficult economic phase and regaining global confidence due to close coordination between the government and the business community.
At the ceremony, the prime minister presented awards to the top 30 exporters and leading bankers for their outstanding contribution to the national economy during the fiscal year 2024–25.
