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Pakistan’s industrial power transmission network and export cargo illustrating reduced wheeling charges and policy measures to support exporters

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Pakistan Exporters Relieved Wheeling Charges and Export Refinance Rates — What Changed, What Didn’t, and Why It Matters

Pakistan cuts wheeling charges by Rs 4.04/unit and lowers export refinance rates to 4.5%. What changed, what didn’t, and why it matters.

  • Operation and maintenance of grid infrastructure

  • Transmission and distribution services

  • Compensation for technical losses at different voltage levels

Wheeling enables open access, allowing bulk consumers to source electricity from non-local suppliers instead of being locked into a single utility. In Pakistan, these charges have historically been high due to cross-subsidies, making industrial power more expensive and less competitive regionally.

Reducing wheeling charges does not change how electricity is generated—but it changes how costly it is to move.


Why this matters for industry and exports

For sectors such as textiles, chemicals, engineering, cement, and processing industries, electricity is a defining input cost. When power prices include layers of policy-driven distortion, export competitiveness erodes even if productivity improves.

By lowering wheeling charges:

  • Industrial users see lower delivered energy costs where wheeling applies

  • Cost predictability improves for long-cycle export orders

  • Price parity with regional competitors becomes more attainable

This is especially relevant at a time when exporters are facing compressed margins, volatile input prices, and slower global demand.


Financing relief: supportive, but not the whole story

Alongside energy-related measures, the government also announced a 300 basis point cut in export refinance rates, bringing them to 4.5%. The objective is clear: improve working capital affordability and ease liquidity constraints for exporting firms.

Lower refinance rates:

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