Chairman of the Economic Policy and Business Development (EPBD) think tank, Dr Gohar Ejaz, on Friday welcomed the government’s landmark reforms aimed at strengthening Pakistan’s export industry, including a reduction in export refinance rates to 4.5 percent, elimination of cross-subsidy on industrial electricity tariffs and a cut in wheeling charges.
The decisions, approved by Prime Minister Shehbaz Sharif, are expected to significantly reduce the cost of doing business, with industry estimates showing that removal of cross-subsidy alone will lower electricity prices for industrial consumers by Rs4.04 per unit.
Dr Ejaz said the long-awaited move to bring wheeling charges below Rs9 per unit would enable industries to utilise cheaper renewable energy, including solar and wind power, through wheeling arrangements with power distribution companies (DISCOs), improving both competitiveness and sustainability.
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He noted that high energy costs had remained a major hurdle for exporters and described the latest measures as a decisive step toward restoring regional competitiveness of Pakistani industry.
According to Dr Ejaz, Pakistan has the potential to export goods and services worth $100 billion by 2030, provided the government continues to support industry through timely policy decisions and sustained reforms to reduce production costs.
