PM unveils major relief for industry, export sectors

Announces Rs4.04 power tariff cut; Slashes export refinance scheme rate by 3% to 4.5%; Offers blue passports PM Shehbaz Sharif addresses the country’s major exporters and business figures at a ceremony in Islamabad. Photo: APP Prime Minister Shehbaz Sharif on Friday announced major relief measures for the industries and exports sectors, including a reduction in electricity tariffs by Rs 4.04 per unit and wheeling charges to less than Rs9 for industry, alongside a significant decrease in the export refinance scheme rate from current 7.5 per cent to 4.5 per cent and the issuance of blue passports for the leading exporters for two years. He said the government had allocated Rs1,052 billion for the export refinance scheme, of which Rs900 billion had already been utilised, adding that under the scheme, exporters were availing three percent relief on the State Bank of Pakistan's policy rate, which had now been further reduced to 4.5 per cent. Addressing the award ceremony of top exporters for the year 2024-25, he said the government would offer blue passports to exporters who were awarded during the ceremony for a period of two years as part of its efforts to facilitate and incentivize export-led growth. The prime minister said that Pakistan's economic revival and long-term stability depend on export-led growth and foreign direct investment (FDI) in export-oriented projects, stressing that the business community must play a central role in driving sustainable development. He said stabilisation alone was not enough and the country must now transition towards growth that is sustainable, competitive, and export-driven. "There is no other way forward. Export-led growth is the only solution for Pakistan's economic future," he said. Prime Minister Shehbaz emphasized that future FDI would be encouraged only in export-led projects, which would help generate foreign exchange and strengthen the country's reserves. "This is a win-win strategy. It boosts exports and attracts investment at the same time," he added. Paying tribute to exporters, the prime minister termed them the backbone of the national economy and credited their resilience and commitment for helping Pakistan navigate through severe economic challenges. He recalled that in June 2023, Pakistan was on the brink of default, inflation stood at 32 percent, and the policy rate had peaked at 22 percent, causing immense hardship for investors, exporters, and the business community. He said that through collective efforts, the economy had stabilized, with inflation now in single digits, the policy rate reduced to 10.5 percent, and foreign exchange reserves doubled compared to three years ago, although 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." The prime minister said that at this moment, in the 3rd quarter, the country's foreign exchange reserves had doubled, but that included loans from friendly countries as well. He acknowledged the support of China, Saudi Arabia, the UAE, and Qatar in stabilizing the economy during the crisis. PM Shehbaz said that he, along with the Chief of Defence Forces and the Chief of the Army Staff, Field Marshal General Asim Munir, went to many countries for assistance. He warned that stabilization without growth would not solve structural problems, noting that poverty and unemployment had increased and exports had not met the set targets. He urged the business community to increase investment and assured them that their recommendations would be implemented in letter and spirit. Highlighting the importance of small and medium enterprises, PM Shehbaz called on banks to enhance lending to SMEs to promote entrepreneurship and diversify the economy. He said Pakistan must abandon the boom-and-bust economic model, which repeatedly creates balance-of-payments crises. The prime minister also emphasized tax compliance, warning industries against withholding taxes collected from consumers. He revealed that government action against sugar mills had resulted in Rs50 billion in additional tax revenue over the past year and vowed to continue strict enforcement. He said the government had also controlled smuggling of petroleum products which helped collection of additional Rs 125 billion revenue per year as Petroleum Development Levy (PDL). He attributed the credit of curbing smuggling on borders areas to Field Martial Syed Asim Munir who had issued orders of strict actions against smugglers and their supporters. On the digital economy, he said the government was prioritizing IT exports and had set a target of increasing IT exports to $30 billion from the current $3 billion within five years. He praised Minister for IT Shaza Fatima Khawaja for her efforts in this sector. Prime Minister Shehbaz also acknowledged the contributions of Deputy...

PM unveils major relief for industry, export sectors

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