Mohsin Siddiqui (Chief Reporter)
The industrial sector, Prime Minister Shahbaz Sharif has announced a substantial reduction in electricity prices for industries. The new pricing, which reduces the cost by Rs10.69 per unit, fixes the electricity rate at Rs34.99 per unit for both the industrial and export sectors. This initiative, proposed by the National Electric Power Regulatory Authority (Nepra), is expected to alleviate the financial burden on industries by more than Rs200 billion.
The Prime Minister’s Office (PMO) stated that this package is designed to enhance the competitiveness of Pakistani industries in the global market. By lowering electricity costs, the government aims to reduce the overall cost of production for both industrial and agricultural products. This reduction is anticipated to significantly boost exports by making locally produced goods more competitive internationally.
The PMO emphasized that the package is not just about reducing costs but also about stimulating industrial activity and generating employment opportunities. Lower electricity prices will lead to increased industrial operations, which in turn will create more jobs. The increased industrial activity is expected to revitalize the country’s economy by enhancing productivity and export levels.
The reduction in electricity prices is part of a broader strategy to support export-oriented growth. By making production more cost-effective, the government is facilitating industries in scaling up their operations and expanding their reach in global markets. This measure is crucial for industries that rely heavily on electricity for their manufacturing processes, as it directly impacts their cost structure and profitability.
The PMO highlighted that the long-term benefits of this initiative include a more robust and dynamic industrial sector. As industries become more competitive, they can attract more business, both domestically and internationally. This will lead to sustained economic growth and increased foreign exchange earnings through higher export volumes. Additionally, the ripple effect of enhanced industrial activity will benefit ancillary industries and services, further bolstering the economy.
By reducing electricity costs, the government is also promoting sustainable industrial development. Industries can invest the savings from lower electricity bills into upgrading their technologies, improving efficiency, and adopting more sustainable practices. This aligns with global trends towards more environmentally friendly and energy-efficient industrial operations.
Prime Minister Shahbaz Sharif’s announcement reflects the government’s commitment to implementing economic reforms that support industrial growth and development. This initiative is part of a series of measures aimed at revitalizing the economy, supporting businesses, and creating a more conducive environment for industrial development. The government is keen on ensuring that industries can thrive and contribute significantly to the national economy.
The announcement has been welcomed by industry leaders and business associations, who have long advocated for lower electricity costs. They believe that this reduction will help them manage their expenses better and improve their competitiveness in the international market. Business leaders have expressed optimism that this move will lead to increased investment in the industrial sector and spur economic growth.
