ISLAMABAD: Prime Minister Shehbaz Sharif announced a PKR4.04 per unit cut in electricity tariffs for industries on Friday, calling it a critical step to ease production costs and revive economic activity. However, he admitted that deeper cuts were constrained by fiscal realities.
At an event, the prime minister said he had initially wanted to reduce electricity prices by Rs10 per unit but was unable to do so due to existing limitations. He also announced a reduction of Rs9 in wheeling charges for industrial consumers, describing the combined relief package as aimed at improving competitiveness and supporting industrial expansion.
For exporters, Sharif slashed the tax rate from 7.5% to 4%, describing this move as a major incentive for the sector. He also mentioned that award-winning exporters and leading business figures would be issued blue passports for two years, likening them to “crown jewels” of the economy.
Speaking on broader national context, Sharif noted Pakistan’s recent success during tensions with India had altered global perceptions. “Pakistan delivered a defeat that even future generations will remember,” he said, adding that the country now commands respect internationally. He mentioned personal observations of shifted attitudes towards Pakistan after visiting foreign countries following Ma’araka-e-Haq.
Sharif recalled a period when Pakistan was widely described as on the brink of default and suggested saving the country from default was one of his government’s biggest challenges during tough discussions with the IMF at the 2023 Paris Summit. He thanked friendly countries, including China, Saudi Arabia, Qatar, and the UAE, for their support at a critical time.
He acknowledged that without further easing of interest rates, economic capacity could not expand fully, stating that the economy had now stabilised but conditions were still far from ideal. Key indicators showing improvement include single-digit inflation, a drop in the policy rate from 22% to 10.5%, and foreign exchange reserves doubling.
Sharif said difficult decisions were beginning to yield results and urged industrialists to take bold steps as advised by the finance minister. He added that he and the field marshal had visited several countries to present Pakistan’s economic roadmap, while conceding that exports in some sectors had yet to pick up.
He defended the closure of utility stores, citing corruption and indignity faced by citizens standing in long queues, and also took action against corruption in Pasco and the sugar sector, recovering Rs50 billion from sugar mills. He credited the field marshal with playing a key role in curbing smuggling, including petrol smuggling.
Concluding on a lighter note, Sharif praised several cabinet members for their performance and joked that he hoped he had not forgotten to commend anyone, lest they take offence.