by ZeeShan Kahloon 
Prime Minister Imran Khan launched a major electricity tariff relief package to promote higher power usage and manufacturing for the general, small, and medium-sized industries.
HIGHLIGHTS
PM Imran Khan today revealed the Small Medium Business & Large-Scale Industries Energy Kit.
- No peak hour rate: At the usual peak hour rate, the energy tariff would be charged.
- Additional energy use tariff concession from 01 Nov 2020 to June 2021
- 50% reduction for SMEs
- 25% reduction for large Industry
The premier said that we gave incentives to exporters. Pakistan is the only country on the subcontinent that has grown the fastest in terms of an increase in export after COVID-19. At the same time, Pakistan was largely spared the adverse effects of the pandemic, a fact that has been globally recognized.
“As soon as we came into power, we tried to increase exports. Why did we do that? Because the output of wealth is directly related to exports.”
He said that the package would not only increase exports but also provide a boost to domestic industries.
How This Decision Will Affect The Business Trend
“We have agreed that, in comparison to previous bills, from November 1, electricity will be delivered to small and medium businesses using additional power at a cost reduction of 50 percent until June 30th, 2021.”
Next, the peak hours will last for 24 hours, and there will be no peak hours. What occurred in the past was that peak hours will raise the electricity rate by 25pc for factories between 7 pm and 11 pm. And for many years, this has been happening, he said.
Then, a 50pc discount on additional electricity until June will be provided to industries with B-1, B-2, and B-3 connections. Thirdly, both companies will offer a 25pc discount on additional electricity used for the next three years.
He added that, regardless of the world recession, Pakistan’s economic structure was on the rise. Many companies choose a tempo but are unable to meet their orders. So, in an attempt to deliver their prices down and retain them working during peak hours, this package deal was necessary to increase their production.
Boost In Business And Economy Due To Govt’s Steps
Abdul Hafeez Sheikh, Prime Minister of Finance and Revenue Advisor said Pakistan’s economy was stable because of the government’s measures, which included reducing its own expenditures and ramping up efforts to collect taxes.
“These decisions have resulted in hope for our primary equilibrium,” he said. He added that when it took over, another issue the PTI government faced was decreasing exports.
“We have made the decision that we must industrialize Pakistan and have taken big measures to do so,” he said, adding that the World Bank has also praised them.
He highlighted some of the optimistic economic indicators, too. In the first four months [of the new fiscal year], tax collection and remittances are up while exports are rising. The current account and surplus of the primary account are both increasing.
Effects Of Property Business—Clear Instructions By PM
Asad Umar, Minister of Planning and Development, said the Prime Minister had issued specific instructions to take all of those steps to promote and encourage the country’s economic activity.
“In recent months, significant decisions have been made in the energy market, which have allowed the government to announce this package,” he said. “I can’t remember that for the next three years another government will declare prices for electricity.”
The second factor that made this possible was the way the country handled the pandemic, under the vision of the premier, which prioritized the health of people and the economy, he said.
Earlier, Pakistan chose to open up the economy. We opted for a ‘smart lockdown’ and saw a decline in cases and casualties while managing to resuscitate the economy as well. He added that measures must be taken to ensure the protection of the incomes of citizens.
“We know that COVID-19 is rising again. We need to take all those measures that allow us to curb the spread of the virus while ensuring that the incomes of people are not impacted,” he said.
“We want the wheel of the economy to keep going,” he said, adding that he hoped the message would be taken seriously by businessmen.
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