Pakistan reduces sales tax on imported solar panels from 18 percent to 10 percent amid parliamentary pushback
ISLAMABAD: Pakistan's Deputy Prime Minister Ishaq Dar on Wednesday said the general sales tax (GST) on imported solar panels had been reduced from 18% to 10% for the current year, following concerns raised by a parliamentary finance body.
The Senate Standing Committee on Finance and Revenue had urged the government a day earlier to withdraw the proposed 18% GST on imported solar panels, noting that some stakeholders had begun stockpiling equipment ahead of the federal budget to avoid the new levy.
The country's proposed federal budget for the 2025-26 fiscal year included an 18% GST on the import and local supply of solar panels and related equipment, prompting concern from industry stakeholders and clean energy advocates.
Pakistan imported 17 gigawatts (GW) of solar panels in 2024, twice the volume recorded the year before, to meet rising consumer demand, according to the Global Electricity Review 2025.
'The 18 percent on top of 46% was an additional burden,' Dar told the National Assembly.
'So, regarding this, after consultations and deliberations, we have decided that this year we will keep a 10% sales tax and not 18%.'
Dar highlighted how this was the most debated subject after the budget was announced.
He also explained that around 46% of components used in solar installations in Pakistan were imported while the remaining 54% including inverters and other equipment were locally sourced and already subject to standard taxation.
Solar energy has supplied 25% of Pakistan's grid electricity so far this year, placing the country among fewer than 20 globally that generate at least a quarter of their monthly power from solar farms.
Industry stakeholders and clean energy activists had warned that the added cost in tax could slow the rapid adoption of rooftop solar systems by households and businesses, potentially undermining national targets for expanding the share of renewables in the country's energy mix.
Pakistan increased its solar electricity generation at a rate more than three times the global average in 2025, driven by a surge in solar capacity imports that were over five times higher than in 2022, according to data from Ember, a UK-based energy think tank.
This rapid growth in both capacity and output has propelled solar energy from being the country's fifth-largest power source in 2023 to the top spot in 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
41 minutes ago
- Arab News
Pakistan has had no new military cooperation with Iran since Israeli strikes began, defense minister Asif tells Arab News
ISLAMABAD: Pakistan's Defense Minister Khawaja Asif said on Monday that Islamabad had not engaged in any new military cooperation with Tehran since Israel launched attacks on Iran last week and had not held specific talks with the US over the escalating crisis in the Middle East. Iran, which borders Pakistan, has hit back with strikes against Israel after it unleashed waves of attacks on Friday at Iranian nuclear installations, missile stockpiles, scientists and military commanders, among other targets, sparking global alarm that the conflict could erupt into a regional war. The latest escalation follows months of hostilities between Israel and Iranian-backed groups in Lebanon, Syria and Yemen, which intensified after the war in Gaza was launched late in 2023. Regional powers fear a direct confrontation could spiral into a broader conflict involving major oil shipping lanes and global energy supplies. For Pakistan, a close Iranian neighbor and a longtime opponent of Israel, a prolonged conflict risks disrupting border security, inflaming sectarian tensions at home and possibly putting it in a tight spot with Arab allies and the West. Speaking to Arab News, Asif said regular security cooperation was continuing with Iran along their shared border to combat militant groups, but no fresh operational coordination had been initiated in response to Israel's attacks on Iranian territory since June 13. 'I don't see any need for it,' the defense minister said in response to a question on whether Pakistan's military was coordinating with its Iranian counterparts on the border or engaging in any fresh defense cooperation. 'We coordinate on a very regular basis as far as the Iran and Pakistan border is concerned because of terrorist activities … that sort of cooperation is already on. So I don't see any new activity.' Asked if Pakistan had held talks with Washington to discuss the fast-evolving situation, the minister said there had been no contact specifically on the crisis in the past five days. 'But we are in constant touch with the United States of America regarding the tense situation we have in this region.' Asif said Pakistan's leadership was instead focused on engagement with close partners like China and Muslim countries to press for calm, warning that the conflict risked engulfing the entire region. 'The countries who have religious affinity with us or geographical affinity, even China or other countries, because what we are pursuing is peace,' he said. 'And we would like to mobilize the countries of this region. This conflict can multiply and it can engulf the whole region into a situation which could be very, very disastrous.' Diplomatic and security experts warn that the Israel-Iran hostilities could affect Pakistan by destabilizing its western border with Iran, threatening energy imports as oil prices surge and creating new pressures on Pakistan's relations with the US and Gulf partners if Islamabad is seen as tilting too far toward Tehran. On the other hand, if Tehran were to fall or be severely weakened, analysts say Pakistan would likely side with the US and its allies — despite being Iran's immediate neighbor — to protect its strategic and economic interests. Addressing concerns over past remarks by Israeli Prime Minister Benjamin Netanyahu that have drawn parallels between Iran and Pakistan as so-called militant Islamic regimes that needed to be deterred, Asif rejected any immediate threat to Pakistan from Tel Aviv, but stressed Islamabad would remain vigilant. 'If we are threatened by Israel, which I will discount at the moment … what happens in the coming months or years I can't predict, but at the moment I discount (a threat from Israel),' he said. He described Israel as a state with 'hegemonic intent' whose recent actions in Gaza and against Iran were 'extremely dangerous to the immediate region,' and said global public opinion was turning against Israeli policies despite support or muted reactions from many Western governments. Asif declined to comment on reports that Pakistan had scrambled fighter jets near its nuclear sites and the Iranian border in response to Israel's initial strikes on Iran but insisted that its nuclear security remained robust. In addition to the Middle East tensions, Pakistan faced a major military standoff with India last month in which the two sides exchanged missile, drone and artillery attacks. Islamabad claimed to have shot down six Indian jets and struck back at military positions, triggering fears of a wider conflict between the nuclear-armed rivals before a ceasefire was announced by the Trump administration on May 10. When questioned about any direct threat to Pakistan's national security or strategic assets as a result of the conflict in the Middle East, Asif said Pakistan's armed forces were already on high alert following the latest confrontation with New Delhi, describing the country's nuclear facilities as 'very militantly guarded, very grudgingly guarded' and fully compliant with international safeguards. 'Since our short war with India, we have been on alert so we have not lowered guards … We can never take the risk of any attack on our nuclear facility from anywhere, that is something which is a lifeline as far as our defense is concerned,' he said. Asif said Pakistan's performance in the recent fight with India was evidence of his country's defense capability and national resolve, which would deter Israel from any adventurism. 'We have just had a bout with India and we clearly established our superiority, the superiority of our armed forces, air force, Pakistan army, Pakistan navy and the determination of our people, the way the nation stood behind the armed forces,' he said. 'So I think Netanyahu or his people or his government will think many times before taking on Pakistan.'
ArabGT
2 hours ago
- ArabGT
A Side by Side Look at How the 2026 Nissan Leaf Has Transformed
Nissan is taking a bold step into the next era of electrification with the third-generation 2026 Nissan Leaf, a dramatic reinvention that shifts the model from a compact hatchback to a subcompact electric SUV. While the official press release avoids labeling it an SUV outright, the vehicle's raised stance, sleeker profile, and aerodynamic enhancements place it firmly within crossover territory—signaling Nissan's intent to blend utility with innovation. From Hatchback Roots to Crossover Ambitions Since its groundbreaking debut in 2010 as the world's first mainstream EV, the Leaf has led Nissan's electrification efforts. The 2026 model represents a full reset: visually, it aligns with the brand's SUV design language, echoing cues from the Ariya and Murano, while internally it benefits from the CMF-EV platform shared with the Ariya. Although some dimensions like the wheelbase (reportedly reduced from 106.3 to 105.9 inches) and overall length have shrunk, the Leaf now presents a more assertive, upright silhouette with a panoramic dimmable glass roof available on the Platinum+ trim. More Cabin Room and Cargo Utility Interior upgrades are substantial. Leaked specifications indicate that rear legroom now stretches to 42.4 inches—up nearly 9 inches from before—along with improved dimensions for front passengers. Though headroom has slightly decreased, the cabin adopts a cleaner, more ergonomic design with ambient lighting and a refreshed dash layout. Cargo space has expanded notably. While official figures note 437 liters of capacity (VDA), internal data suggests up to 56 cubic feet with the rear seats folded—nearly double the previous generation's 30 cubic feet. Even with the seats up, capacity remains practical at approximately 20 cubic feet. Technology Takes a Front Seat Tech upgrades are evident. Base trims feature 12.3-inch digital displays, while SV+ and Platinum+ models move up to twin 14.3-inch screens. Google built-in is integrated into higher trims, providing seamless access to Maps, Assistant, and Play Store. Wireless Apple CarPlay and Android Auto come standard across the board, along with NissanConnect app support for remote battery and climate controls. Additionally, the Leaf now supports Vehicle-to-Load (V2L) technology—enabling users to power small appliances directly from the car—and is Vehicle-to-Grid (V2G) ready, aligning with Nissan's push toward integrating EVs into home and grid ecosystems. More Power, Bigger Batteries, Longer Range Performance has received a clear boost. According to leaked technical details, the base model now delivers 174 hp and 254 lb-ft of torque (up from 147 hp and 236 lb-ft), while the upgraded 214-hp motor generates 261 lb-ft of torque. Battery capacities rise to 52 kWh for the S trim and 75 kWh for S+, SV+, and Platinum+—a jump from the previous 40 and 60 kWh configurations. Range is also notably improved. Nissan's official figures indicate up to 604 km (375 miles) on a full charge, with fast charging capability that recovers 417 km (259 miles) in just 30 minutes via 150kW DC charging. Trim-specific EPA figures (leaked but not yet homologated) list the S+ at 303 miles, SV+ at 288, and Platinum+ at 259 miles. The 2026 Leaf also embraces the North American Charging Standard (NACS), adding access to Tesla's Supercharger network alongside the traditional J1772 port. Expanded Trim Levels, European Production Breaking from the current two-trim layout, the new Leaf offers a broader range: S, S+, SV+, and Platinum+. While pricing hasn't been announced, it's expected to exceed the 2025 base MSRP of $29,280. Production will take place at Nissan's Sunderland facility in the UK—part of the automaker's EV36Zero initiative, a sustainability blueprint for localized EV manufacturing powered by renewable energy.
Arab News
4 hours ago
- Arab News
Pakistan rescues injured Indian sailor amid post-war tensions with New Delhi
ISLAMABAD: Pakistan on Wednesday evacuated an injured Indian sailor from an oil tanker in the Arabian Sea, in a rare humanitarian gesture weeks after the two countries fought a brief four-day war that further strained already tense relations. The medical evacuation was coordinated by the Pakistan Navy's Joint Maritime Information and Coordination Center (JMICC), which received a distress call from the Liberian-flagged oil and chemical tanker MT HIGH LEADER, carrying an all-Indian crew. The Pakistan Maritime Security Agency (PMSA) deployed a vessel and transferred the injured crew member to a hospital in Karachi for emergency treatment. 'The successful medical evacuation is yet another testament to the operational readiness and responsiveness of Pakistan's maritime safety apparatus,' the Pakistan Navy said in a statement. 'The swift execution reflects Pakistan Navy's resolve to fulfill its international obligations for the safety of life at sea, irrespective of the nationality of the seafarers involved,' it added. The incident comes at a time of high diplomatic friction between the two nuclear-armed neighbors. Last month's military confrontation, involving missile, drone and artillery exchanges, marked one of the most serious escalations in recent years. Pakistan has repeatedly called for the revival of a composite dialogue process to resolve long-standing issues, including the Kashmir dispute, cross-border militancy and a water-sharing arrangement under the Indus Waters Treaty. India, however, has resisted any engagement so far. The JMICC, which coordinated the evacuation, serves as Pakistan's central maritime emergency response hub and regularly liaises with both national and international stakeholders.
