LCCI President Says Energy and Financing Cost Reductions Will Boost Export Competitiveness

By Farzana Chaudhry | Lahore, Pakistan | January 30, 2026
Lahore: President of the Lahore Chamber of Commerce and Industry (LCCI), Faheem ur Rehman Saigol, along with Senior Vice President Tanveer Ahmed Sheikh and Vice President Khurram Lodhi, welcomed the special relief package announced by Prime Minister Shehbaz Sharif for exporters and industry.
The LCCI officials said that while the business community had hoped for a larger relief package, any assistance in the current economic climate is valuable for industry and exports.
Faheem ur Rehman Saigol highlighted the reduction of the Export Refinance Rate (ERR) by 300 basis points, from 7.5% to 4.5%, calling it a positive step that would provide cheaper financing for exporters, ease working capital pressures, and encourage new investment.
He further noted that the reduction of industrial electricity tariffs by around Rs 4 per unit and wheeling charges by up to Rs 9 per unit would significantly lower production costs, particularly in energy-intensive sectors like textiles, engineering, food processing, and chemicals. Cheaper electricity, he said, would improve profit margins and make Pakistani products more competitive internationally.
Senior Vice President Tanveer Ahmed Sheikh described the package as temporary support amid weak global demand and tough competition, emphasizing that it would help exporters maintain existing orders, enhance quality, meet international standards, and increase production capacity. He added that structural reforms are still needed for sustainable long-term growth.
Vice President Khurram Lodhi said the relief measures reflect the government’s export-led economic vision, but the scale of challenges means the business community expected more. Nevertheless, he noted, if implemented effectively, the measures could boost exports in the short and medium term.
LCCI office-bearers stressed that, in addition to lower energy and financing costs, policy stability, predictability, and regulatory simplification are crucial for long-term investment planning. They also called for easy access to the relief package for SMEs, highlighting their role in employment and the export value chain.
The officials expressed hope that the government would announce further relief in the upcoming budget and policy measures, reaffirming LCCI’s commitment to support economic growth and represent the business community.