Finance Minister Muhammad Aurangzeb announced that the government intends to reduce electricity prices as part of a broader strategy to support manufacturers and enhance exports. His statement, made during an interview at the Boao Forum in China, follows the recent agreement with the International Monetary Fund (IMF) for a new $1.3 billion arrangement and the first review of Pakistan’s ongoing 37-month bailout program.
Aurangzeb emphasized the need to shift Pakistan’s economic focus towards export-led growth, stating that “the DNA of the economy has to change” to achieve this goal. He added that under the leadership of Prime Minister Shehbaz Sharif, efforts are underway to lower energy tariffs, with an official announcement expected in the coming days.
Electricity prices in Pakistan have surged in recent years, negatively impacting grid demand and making local industries less competitive compared to regional counterparts. According to the Pakistan Bureau of Statistics (PBS), the industrial sector contracted by 0.18% during the second quarter of the current fiscal year.
Prime Minister Shehbaz Sharif also pledged that a relief package to reduce electricity costs for the public would be unveiled soon, during a meeting on energy matters held in Islamabad on Wednesday.
Additionally, the government is working on a new budget that would expand the tax base to include sectors like real estate, retail, and agriculture. This move could ease the tax burden on the manufacturing sector, which has been facing disproportionately high taxes.
Aurangzeb further revealed that Pakistan plans to issue its first-ever Panda Bond in the Chinese market this year. He expressed confidence that tapping into China’s capital market—one of the world’s largest—will help Pakistan diversify its funding sources.
