Prime Minister Shehbaz Sharif on Friday announced a major relief package for industry and exporters, including a Rs4.04 per unit cut in electricity tariffs, lower wheeling charges, cheaper export financing, and special blue passports for leading exporters.

Addressing an awards ceremony for top exporters for FY2024-25, the prime minister said electricity wheeling charges for industry would be reduced to below Rs9 per unit, while the export refinance scheme rate had been cut from 7.5 per cent to 4.5 per cent.

He said the government had allocated Rs1,052 billion for the export refinance scheme, of which Rs900 billion had already been utilised. Exporters were earlier receiving a three percent subsidy on the State Bank of Pakistan’s policy rate, which has now been further reduced, he added.

As part of incentives to promote export-led growth, the prime minister announced the issuance of blue passports for a period of two years to exporters honoured at the ceremony.

PM Shehbaz said Pakistan’s economic revival and long-term stability depended on export-led growth and foreign direct investment in export-oriented projects.

“Stabilisation alone is not enough. Export-led growth is the only way forward,” he said.

He said future foreign investment would be encouraged only in export-focused projects to generate foreign exchange and strengthen reserves, calling the approach a “win-win strategy” for exports and investment.

Paying tribute to exporters, the prime minister termed them the backbone of the economy and credited their resilience for steering Pakistan through a severe economic crisis. He recalled that in June 2023 the country was on the brink of default, inflation had surged to 32 per cent, and the policy rate had peaked at 22 per cent.

He said the economy had since stabilised, with inflation now in single digits, the policy rate reduced to 10.5 per cent, and foreign exchange reserves doubling over the past three years, though he acknowledged that part of the reserves included support from friendly countries.

The prime minister reiterated the government’s resolve to reduce reliance on external debt, saying nations that rely on borrowing lose respect. He acknowledged economic support from China, Saudi Arabia, the UAE and Qatar during the crisis.

Warning that stabilisation without growth would not address structural weaknesses, he said poverty and unemployment had increased and export targets had not been fully met. He urged the business community to increase investment and assured them that their recommendations would be implemented.

Highlighting the role of small and medium enterprises, he called on banks to expand lending to SMEs and said Pakistan must abandon the boom-and-bust economic model that repeatedly triggers balance-of-payments crises.

On taxation, PM Shehbaz warned industries against withholding taxes collected from consumers.

He said action against sugar mills had generated Rs50 billion in additional revenue over the past year, while curbs on petroleum smuggling had added around Rs125 billion annually through the Petroleum Development Levy.

He credited security forces for strict action against smuggling networks in border areas.

On the digital economy, the prime minister said the government aimed to raise IT exports to $30 billion from $3 billion within five years, praising IT Minister Shaza Fatima Khawaja for her efforts.

Commerce Minister Jam Kamal Khan said Pakistan was emerging from a turbulent economic phase and regaining international confidence due to the government’s engagement with the business community.

At the ceremony, the prime minister presented awards to the top 30 exporters and leading bankers for their contributions to the economy during FY2024-25.