Prime Minister Shehbaz Sharif on Friday announced a Rs 4.4 reduction in the per unit rate of electricity for the industrial sector in a bid to improve productivity and exports.
The premier stated this during an address to the country’s major exporters and business figures at a ceremony in Islamabad, which was held to honour their contributions.
“A Rs4.4 reduction is being made in the electricity unit rate for industries,” said the premier, adding that “if it were in his control, he would reduce it by another Rs10.”
“However, my hands are tied, as you all know well,” he said.
PM Shehbaz also announced a reduction in wheeling charges for industries, stating that “it will be less than Rs9”. He hoped that the move would help “industries sell their power to neighbouring industries”.
To provide additional relief, the premier said that “with the cooperation and support of Pakistan’s banks, we are announcing a reduction in the export refinance rate from earlier 7.5pc to 4.5pc”.
At the outset of his address, the premier lauded business leaders and major exporters for their “hard work and efficiency for achieving major milestones in their relevant sectors in the past year”.
“The billions of rupees you have earned for Pakistan, the entire nation congratulates you [on that],” PM Shehbaz said.
The premier, during his address, also stated that he could now say “without hesitation” that Pakistan’s economy had become “stable”.
PM Shehbaz noted that the inflation was in “single digits and the policy rate is at 10.5 per cent”.
The premier recalled that “there was a time when the policy rate used to be 21.5-22pc, and inflation was galloping,” adding that people did not know what was to come.
“We faced a lot of difficulties, and our industrialists and businessmen faced these difficulties head-on,” PM Shehbaz recalled. “There was hope that maybe there would come a better time, and Pakistan would be on its way to progress.”
However, he cautioned that while the “economy has stabilised, this is not enough”.
“I want to present a harsh reality to you,” he said and went on cite increased poverty and unemployment rates and the dearth of profits from current exports.
He noted that industries were struggling to compete with other countries due to higher costs.
The prime minister also acknowledged that “the government cannot dictate the private sector,” and stressed the need for moving towards sustainable growth.
“We have to grow our economy, and it has to be sustainable, and we must encourage export-led growth,” he said, stressing that there was “no other way”.
The premier also spoke in favour of encouraging small- and medium-sized enterprises (SMEs). He stressed that the private sector and the government must “hold the hand of SMEs” in order to provide support.
PM Shehbaz expressed “full faith” in business leaders’ “vision and commitment, which he said held the potential to “transform Pakistan’s economy in a few years”.
As he appreciated their role, he also announced blue passports for the exporters awarded during the ceremony and declared them “ambassadors at large”. The premier also recalled the recent privatisation of PIA, expressing hope that the airline would soon be restored to its “past glory”.
“I have full faith that he (Arif Habib) and his partners can revive that era. I want to reiterate that once again, you have the full support of the government,” the premier said.