PM cuts electricity rates by Rs4.4/unit for industries

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday announced a Rs4.4 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 recalled that in 2023, the country was on the brink of default.

“Day and night, there were reports that Pakistan was going to default,” he said, adding that it was a “big challenge for the nation”.

The premier recalled a meeting with International Monetary Fund (IMF) Managing Director Kristalina Georgieva in Paris, during which she flagged Pakistan’s inconsistency during previous programmes.

He recalled the lending agency’s managing director as saying: “I was told that time was running out, and it will be difficult to offer a new structure.”

PM Shehbaz added, “I told her that I was giving her my word of honour that we will ensure implementation and commit to the agreement in letter and spirit.

“When I came back to Pakistan, she called me to tell me [..] that our team will sit down with you and you must honour the commitment you made. This is how Pakistan was saved from default.”

Shifting his attention to the present situation, PM Shehbaz continued: “At this moment, in the third quarter, our foreign exchange reserves have doubled, but that includes loans from friendly countries as well.”

PM Shehbaz detailed that he, along with Chief of Defence Forces and the Chief of the Army Staff Field Marshal Asim Munir, went to many countries for assistance, told them about the IMF programme and requested them for funds.

The premier said he was “grateful to the countries for helping, […] but you know whoever takes a loan, […] there are obligations associated with it”. Staff Report