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Pakistan Cuts Industrial Power Tariffs by Rs4.04 and Lowers Export Refinance Rate to 4.5% to Boost Exports

The moves mark a stated shift from crisis management to export-led growth, drawing broad support from trade bodies.

Overview

  • Prime Minister Shehbaz Sharif announced a Rs4.04 per unit reduction in industrial electricity tariffs and lowered wheeling charges to about Rs9 to enable cheaper power access within industry.
  • The export refinance/financing rate was cut by 300 basis points to 4.5% from 7.5%, with officials citing Rs1,052 billion allocated to the scheme and roughly Rs900 billion already utilized.
  • Power Minister Sardar Awais Leghari said the added financial burden on industrial bills has been reduced to zero, putting industrial power near 11.5 cents per unit to improve competitiveness.
  • Awards to leading exporters were paired with two‑year blue passports as a symbolic incentive to promote Pakistan’s economic interests abroad.
  • Business groups including FPCCI, LCCI and PCMA welcomed the relief and urged clear, timely implementation, with calls for SME-friendly access, formal tariff notifications, and attention to fiscal trade-offs such as super tax recovery and short-term FCA adjustments.