Prime Minister Announces Sweeping Relief Package for Business Community
In a significant move to bolster industrial competitiveness, Prime Minister Shehbaz Sharif announced a substantial reduction in electricity costs for Pakistan’s industrial sector. The government will cut power tariffs by Rs4.4 per unit and reduce wheeling charges by Rs9, providing direct relief to manufacturers and exporters.
Comprehensive Support for Exporters
The announcements were made during a ceremony in Islamabad honoring the country’s leading businessmen and exporters. The Prime Minister personally presented awards to top performers and unveiled a multi-pronged support package:
- A reduction in the tax rate for exporters from 7.5% to 4.5%.
- The granting of blue passports to award-winning business figures.
- A commitment to frame all future economic policies in close consultation with the private sector.
Focus on Export-Led Economic Recovery
PM Shehbaz emphasized that there is “no alternative to export-driven economic growth” and stated the government’s role is to provide a conducive business environment while the private sector leads economic activity. He praised exporters for delivering strong performance in 2025 despite difficult conditions, noting they had posted a notable increase in Pakistan’s exports.
Context of Economic Stabilization
The Prime Minister contextualized these measures within broader economic reforms. He highlighted that when his government assumed office, Pakistan faced severe economic fragility with talk of potential default. Through difficult decisions, including engagements with the International Monetary Fund (IMF), the situation has stabilized.
Key improvements cited include:
- A sharp decline in the policy rate from 22% to around 10.5%.
- Foreign exchange reserves that have doubled.
- Gradually decreasing inflation.
Broader Reform Agenda
The address also outlined wider governmental efforts to cut waste and corruption. PM Shehbaz noted the transparent privatization of Pakistan International Airlines and the shutdown of several underperforming or corrupt entities, including the Pakistan Works Department and utility stores. He credited a coordinated effort with military leadership, particularly Field Marshal Asim Munir, for nearly eliminating petrol smuggling.
Path Forward
The Prime Minister directed the State Bank Governor to carefully listen to business concerns and reiterated that structured consultations with traders would finalize economic policies. He stressed that Pakistan must now move decisively towards growth, with the textile, leather, and digital sectors identified as vital. The government’s central focus remains export-based growth to secure the nation’s economic future.
