ISLAMABAD: The federal government on Thursday announced an electricity rate of Rs19.99/per unit for five export-oriented sectors in a bid to promote exports and improve the country’s balance of payment position.

“The finance ministry will bear around Rs100 billion for the period of one year, which was a difference of actual and subsidize rate,” Federal Minister for Finance and Revenue Mohammad Ishaq Dar said as he announced the relief measure, at a press conference here, after having successful negotiations with the representatives of the export-oriented sectors.

Earlier, the government provided electricity at the rate of US 9 cents, which was to continue only for two months.

Dar informed the media persons that the PML-N government had provided Rs147 billion targeted relief or “Duty Drawback” to exporters back in 2017, and resultantly the exports increased by 12.7 per cent.

“Had the policy been followed by the successive government, the country would not have been overburdened by Rs4,000 billion additional loans in the last four years,” the finance minister said.

Declining dollar

He said the dollar started declining against the local currency since he boarded the plane.**

“At present, the exchange rate is adjusting itself, there is no need to use strict action, the dollar is coming down, the real value of the dollar is below 200 rupees,” the finance minister said.

He also said that the rupee was thrown into the open market which provided an opportunity for exploiters to play their games for vested interests and overburden the country with additional debts.

“I am thankful to the currency market for bringing down the dollar in value,” he said, adding the previous government had left the dollar unattended causing devastation.

Dar said the currency market is now functioning well, adding Pakistan has received the benefit of Rs2,600 billion in public debt because of the weakening of dollar.

To a question regarding the International Monetary Fund (IMF) programme, the minister said that he did not need to take the IMF into confidence. “I know what I am doing, I have the justification, when the IMF comes, we will talk.”