Power tariff is likely to be reduced; the Finance Minister hinted at important steps

ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb has given the good news of a possible reduction in electricity tariffs and said that Prime Minister Shahbaz Sharif will make an announcement in this regard soon. In an interview to a foreign magazine during the Bao Forum in China, he said the government is working on reforms in the energy sector and effective steps are being taken to reduce electricity prices.

He said that the reduction in power tariff will not only boost the manufacturing sector. Rather, domestic exports will also increase, which is very important for the stability of the economy. The government’s focus is on improving the economy and industrial development. It will also create job opportunities in the country.

The finance minister hinted at implementing a comprehensive strategy to increase the country’s exports and said the government would take steps to widen the tax net in the upcoming federal budget. In this regard, sectors like real estate, retail and agriculture will be brought into the tax net. So that the burden of tax does not remain only on the manufacturing sector. He said that at present, the industrial sector is paying the highest tax, due to which there is unnecessary financial pressure on it, and the government wants to reduce this burden.

Talking about inflation, Mohammad Aurangzeb said that the government is closely monitoring the overall and core inflation levels, and further reduction in interest rates is expected during this year, which will further boost business activities.

According to economists, if the government successfully implements the power tariff reduction and tax reform, it will increase industrial production, improve exports, and reduce inflation as well as provide relief to the people.