TLDR:
• Pakistan cuts industrial power tariffs
• Nine new industrial zones planned
• UAE to invest in key railway project ML1
ISLAMABAD (The Thursday Times) — The federal government is set to announce a significant reduction in electricity prices for industries, a move aimed at accelerating industrial growth and strengthening investor confidence. Prime Minister Shehbaz Sharif will officially unveil the decision, expected to reshape the manufacturing sector by making energy costs more competitive.
Power tariff reduction to boost industries
Pakistan’s government is preparing to slash electricity tariffs for industries in an effort to enhance the country’s manufacturing capabilities. The initiative, spearheaded by Prime Minister Shehbaz Sharif, is expected to be a game-changer for businesses struggling with high operational costs. Officials indicate that the adjustment will provide much-needed relief to industrial sectors, which have long been burdened by expensive energy. The official announcement is scheduled to be made on a national platform, marking a shift in economic policy that aims to improve productivity and foreign investment prospects.
Lowering electricity costs is being positioned as a strategy to boost economic stability. Policymakers believe that reduced operational expenses will encourage expansion in key sectors, improving competitiveness in regional markets. Business leaders anticipate that the cost cut will enhance export potential while making domestic production more attractive for investors.
Pakistan-China partnership on industrial zones
In a bid to further industrial growth, Pakistan and China are collaborating to establish multiple industrial zones across the country. These zones are set to create employment opportunities, drive local production, and contribute to overall economic resilience. The initiative aligns with Pakistan’s broader economic strategy to strengthen its manufacturing base while fostering deeper trade ties with China.
The zones will provide industries with specialised infrastructure, tax incentives, and logistical advantages. The aim is to attract international businesses while offering domestic enterprises a structured environment to scale operations. By developing these zones, Pakistan is positioning itself as a regional manufacturing hub, offering a competitive alternative to other Asian markets.
UAE investment in Pakistan’s rail network
Alongside industrial expansion, Pakistan’s railway infrastructure is set for a significant transformation with major investment from the United Arab Emirates. A large-scale project will revamp the country’s key railway corridor, connecting Peshawar to Karachi, improving both freight and passenger movement.
The development of this corridor is expected to cut travel times, increase efficiency, and enhance trade routes. With improved logistics, businesses will gain access to better transport infrastructure, lowering distribution costs and streamlining supply chains. The railway upgrade is a crucial component of Pakistan’s strategy to modernise its economic framework and improve connectivity for domestic and international trade.