Former President of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, has warned that the government’s newly announced economic relief package for exporters, despite being a welcome step to address industry concerns, will fail to deliver its intended benefits without effective implementation.
In a statement on Tuesday, former President of the Islamabad Chamber of Commerce, Shahid Rasheed Butt, said that the reforms introduced by Prime Minister Shehbaz Sharif are a direct response to the continuous warnings from exporters regarding staggering energy prices, a decline in international demand, and limited financing.
This incentive package includes a significant reduction of Rs 4.04 per unit in industrial electricity tariffs, a 300 basis points cut in the export refinance rate, and the rationalization of electricity wheeling charges from a high of Rs 9 per unit.
Mr. Butt predicted that with consistent policy implementation, these measures could boost value-added textile exports from approximately $18 billion to $30 billion over the next five years. He said the industry aims to increase annual exports by about 10 percent, which will increase foreign exchange reserves, promote employment, and reduce the country’s dependence on debt.
However, the business leader stressed that mere announcements are not enough. He pointed to ongoing challenges, including the uncertainty of energy bills due to volatile fuel prices and taxation, and delayed refund payments that are straining corporate cash flow.
Concluding his remarks, Mr. Butt stressed that the benefits of increased overseas sales must translate into tangible benefits for the workforce, manifested in better job security and improved wages.