Energy, financing cost reductions to enhance exports: LCCI

2026-01-30 - 14:26

The Lahore Chamber of Commerce and Industry has welcomed the special relief package announced by Prime Minister Shehbaz Sharif for exporters and industry. LCCI President Faheem ur Rehman Saigol, Senior Vice President Tanveer Ahmed Sheikh, and Vice President Khurram Lodhi said that although the business community was expecting a bigger relief package, any relief provided in the current economic situation is important and valuable for industry and exports. Mr Saigol said that the reduction of the Export Refinance Rate by 300 basis points, bringing it down from 7.5 per cent to 4.5 per cent, is a positive step. He said this will provide exporters with cheaper financing, reduce pressure on working capital, and encourage new investment. He said that a Rs 4 per unit reduction in industrial electricity tariffs and up to Rs 9 per unit in wheeling charges is a move towards lowering production costs. “Energy is a major cost for sectors such as textiles, engineering, food processing, chemicals, and other export-oriented industries. Cheaper electricity will reduce per-unit costs, improve profit margins, and make Pakistani products more competitive in international markets”, he stated. Tanveer Sheikh said that the relief package will provide temporary support to the industry. He said that lower energy costs and cheaper financing will help exporters maintain existing orders and focus on improving quality, meeting international standards, and increasing production capacity. He suggested more structural reforms for long-term improvement. Khurram Lodhi said that the business community was expecting more relief. He said that despite this, the measures announced are in the right direction and, if implemented effectively and consistently, can lead to an increase in exports in the short and medium term. He called for easy and practical access to the relief package for the SMEs sector, as this sector plays a key role in employment generation and the export value chain. He expressed hope that the government will provide further relief in the upcoming budget and future policy measures in line with industry expectations to promote Pakistan’s exports on a sustainable basis. Punjab to unveil long-term industrial land lease policy before Ramadan