By Uzma Ehtasham
Prime Minister Shehbaz Sharif has announced a series of incentives for exporters, including a sharp cut in the export refinancing rate from 7.5 per cent to 4.5 per cent, a further reduction of Rs4.04 per unit in electricity tariffs, a Rs9 cut in wheeling charges, and the grant of blue passport facilities for two years to top-performing exporters. Speaking at a ceremony held in honor of leading exporters and business figures, the prime minister said their tireless efforts had brought billions of dollars into the country and helped steer the economy from fragility towards sustainable growth. He claimed that after what he described as a decisive national moment, Pakistan’s standing in the world had improved, with countries that once ignored it now eager to engage.
Political and military leaders, he added, were working in unison for national development, and Pakistan now possessed the capacity to transform its economy within a few years, provided the hard work continued. Shehbaz Sharif openly acknowledged that the partnership between the civilian government and the military leadership had been central to navigating recent crises. Without the support of the army chief and chief of defence forces, Field Marshal Syed Asim Munir, he said, many problems would have remained unresolved. If this unity endured, he argued, even India would be forced to reckon with a stronger and more confident Pakistan. He recalled how, not long ago, talk of Pakistan’s imminent default had become commonplace.
When his government took office, the economy was in disarray and securing an IMF program was a formidable challenge. The country, he said, was saved from bankruptcy through difficult decisions and a commitment to honor promises that previous governments had failed to keep. Today, he claimed, the economy was moving towards stability, inflation was gradually easing, the policy rate had fallen from 22 per cent to around 10.5 per cent, and foreign exchange reserves had doubled. Business leaders have welcomed the relief package as timely, saying it had injected renewed confidence into the industrial and export sectors. That response is hardly surprising. The announcement has come at a moment when the economy was under acute pressure, industry was struggling, and exports were stagnating.
It represents not only a boost for manufacturers and traders but also an implicit admission that Pakistan cannot compete globally without reducing the cost of production. Equally striking was the prime minister’s candid admission that military backing, particularly from Field Marshal Asim Munir, had been indispensable. It underscores the reality of Pakistan’s current hybrid arrangement, in which progress is being pursued through alignment, trust and a shared national agenda between civilian and military leadership. History offers a sobering lesson. Whenever the state’s key pillars have confronted one another, the consequences have been damaging for the economy, internal stability and foreign policy. Conversely, periods of civil-military alignment have often coincided with gains in security and, at times, economic momentum.
In the present climate, such harmony appears to be the only viable route through a web of internal and external challenges. The prime minister’s assertion that a united civil-military front would unsettle India is less a rhetorical flourish than a statement about regional power dynamics. A strong economy underpins credible defence. When the economy falters, strategic advantage is inevitably eroded. This explains the government’s renewed emphasis on industrial revival and export-led growth. The reduction in electricity prices for industry is particularly significant. High energy costs have crippled Pakistani manufacturing for years, leaving exporters in textiles, engineering, pharmaceuticals and sports goods at a disadvantage compared with competitors in Bangladesh, Vietnam and India.
If the government follows through with consistency, the move could help revive exports, create jobs and bolster foreign exchange reserves. Lowering the export refinancing rate to 4.5 per cent is similarly prudent. Without access to affordable capital, exporters cannot invest in technology, meet quality standards or ensure timely delivery in a fiercely competitive global market. The cut in wheeling charges may also help accelerate industrial activity, provided it becomes part of a durable policy framework rather than a temporary concession. The enthusiastic response from business representatives suggests that trust between the government and the private sector is being rebuilt.
Yet an uncomfortable question remains. Will this relief reach ordinary citizens? If factories restart and exports rise while households remain crushed by high electricity bills, gas prices and food inflation, the benefits of recovery will be confined to a narrow segment of society. Public unease over the IMF program is not unfounded either. Past experience shows that such arrangements often come with harsh conditions, higher taxes and rising energy costs.
(The writer is a public health professional, journalist, and possesses expertise in health communication, having keen interest in national and international affairs, can be reached at uzma@metro-morning.com)
