Prime Minister Shehbaz Sharif on Friday announced a 300-basis-point cut in the refinance rate, lowering it to 4.5% from 7.5%, as part of a package aimed at boosting economic activity and easing financing costs.

Sharif also said the government has reduced electricity wheeling charges by PKR 4.04 per unit, bringing the rate to PKR 8.51 per unit from PKR 12.55.

The move is intended to lower power transmission costs for businesses, particularly industrial and commercial consumers.

With the policy rate at 10.5%, the change is expected to provide additional support to exporters and encourage investment.

The premier also announced that exporters would get blue passports for two years.

Sharif made the announcements while attending a ceremony honoring leading exporters and business figures. He presented awards recognizing their contributions to the national economy and also awarded blue passports to the recipients.

Market participants are closely watching the potential impact of the measures on investment, energy costs and broader macroeconomic conditions.