By S.M. Inam
Prime Minister Shehbaz Sharif’s announcement of a wide-ranging relief package for exporters marks a significant intervention at a moment when Pakistan’s economy has been under acute strain. By cutting the export refinancing rate from 7.5% to 4.5%, reducing electricity tariffs by a further Rs4.04 per unit, lowering wheeling charges by Rs9, and offering blue passport privileges for two years to high-performing exporters, the government has signaled a clear intent to revive industry and restore export momentum. In practical terms, the package is a combination of incentives and structural support designed to breathe life into a sector that remains the country’s principal generator of foreign exchange.
Addressing a gathering of leading exporters and business figures, the prime minister credited the sector’s resilience for bringing billions of dollars into the country and helping steer the economy away from collapse towards stability and sustainable growth. He struck a confident note about Pakistan’s standing abroad, claiming that recent developments had enhanced the country’s stature and shifted international perceptions. More than rhetoric, these remarks indicate a government conscious of the optics of economic governance: in a globalized world, investor confidence and international reputation are closely intertwined. Sharif was unusually candid in acknowledging the role of the military leadership, particularly army chief and chief of defence staff Field Marshal Syed Asim Munir, saying that without such support many pressing problems would have remained unresolved.
The admission reflects the reality of Pakistan’s current hybrid governance model, built on civil–military alignment, shared priorities and a common national agenda. History offers a stark lesson: when key state institutions have clashed, the economy, internal stability, and foreign policy have all suffered. When they have moved in step, Pakistan has tended to record gains not only in security but also on the economic front. In that sense, this package is not only an economic intervention; it is also a demonstration of institutional cohesion at a critical moment. The timing of the relief package is critical. Industry has been struggling with high input costs, stagnating exports, and dwindling competitiveness. The government’s move implicitly recognizes a hard truth: without lowering production costs, Pakistan cannot compete in global markets.
Energy prices, in particular, have long crippled manufacturing. Export-oriented sectors such as textiles, engineering, pharmaceuticals, and sports goods have repeatedly warned that Pakistan’s cost base far exceeds that of regional competitors like Bangladesh, Vietnam, and India. If the promised reductions are implemented consistently, they could translate into higher exports, job creation, and stronger foreign exchange reserves—an outcome that would not only strengthen the economy but also signal to the private sector that government policy can be predictable and supportive. The reduction in the export refinancing rate is equally consequential. In global trade, access to low-cost capital is not a luxury but a necessity. Without it, exporters cannot invest in technology, meet quality standards, or ensure timely delivery.
Similarly, the cut in wheeling charges could help accelerate industrial activity, provided it is not treated as a temporary concession but embedded within a durable policy framework. These measures indicate that the government is attempting to tackle both the financial and operational hurdles facing the sector, recognizing that piecemeal interventions alone are insufficient. Business leaders have welcomed the package as a timely and morale-boosting step, suggesting that trust between the government and the private sector is being rebuilt. Yet a fundamental question remains unresolved: will the benefits of industrial revival reach ordinary citizens? If factories recover while households continue to be crushed by high electricity bills, gas prices, and the rising cost of essentials, economic recovery risks becoming the preserve of a narrow segment rather than a shared national gain.
There is little doubt that civil–military alignment has contributed to stabilizing the economy and strengthening national defence. The challenge now is to extend the same seriousness and cohesion to addressing public hardship. Poverty, inflation, unemployment, and unaffordable utility bills remain the most pressing concerns for ordinary Pakistanis. If the current system succeeds in easing these pressures, public trust will grow, and the space for destabilizing narratives will shrink. Without such balance, gains in industrial productivity may remain abstract and confined to boardrooms rather than translating into the lived experience of citizens.
(The writer is a former government officer and a senior analyst on national and international affairs, can be reached at inam@metro-morning.com)
