PM Shehbaz Announces Electricity Rate Cut for Industries
- Prime Minister Shehbaz Sharif announced a reduction of Rs4.4 per unit in electricity rates for the industrial sector on Friday, January 26, 2024, aiming to boost productivity and...
- The reduction lowers the per-unit cost of electricity for industrial consumers by Rs4.4.
- Example: The Prime Minister stated, "A Rs4.4 reduction is being made in the electricity unit rate for industries…if it were in his control, he would reduce it by...
Pakistan Reduces Electricity costs for Industry
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Prime Minister Shehbaz Sharif announced a reduction of Rs4.4 per unit in electricity rates for the industrial sector on Friday, January 26, 2024, aiming to boost productivity and exports. The proclamation came during a ceremony in Islamabad honoring major exporters and buisness leaders.
Electricity Rate Reduction Details
The reduction lowers the per-unit cost of electricity for industrial consumers by Rs4.4. Prime Minister Sharif expressed a desire to reduce the rate further,stating he would lower it by another Rs10 if he had the authority. He acknowledged existing constraints preventing a larger reduction.
Example: The Prime Minister stated, “A Rs4.4 reduction is being made in the electricity unit rate for industries…if it were in his control, he would reduce it by another Rs10.”
Wheeling charge Reduction
In addition to the electricity rate cut, the government also reduced wheeling charges for industries to below Rs9 per unit. This measure is intended to facilitate the sale of power between neighboring industries, promoting efficiency and cost savings.
Context: Wheeling charges are fees paid for the transmission of electricity over a utility’s network.
Export Refinance Rate Lowered
To further support exporters, the government, in collaboration with Pakistani banks, reduced the export refinance rate from 7.5% to 4.5%. This lower rate will reduce the cost of borrowing for businesses engaged in export activities.
Evidence: The announcement detailed a reduction from 7.5% to 4.5% in the export refinance rate, effective instantly with the cooperation of Pakistani banks.
Recognition of Business Contributions
Prime Minister Sharif began his address by praising the hard work and efficiency of Pakistani business leaders and exporters, acknowledging their important contributions to the national economy.
Official Statement: The Prime Minister lauded business leaders and major exporters for their “hard work and efficiency” at the start of his address.