2 days ago
- Business
- Business Recorder
Khatri slams imposition of GST on imported solar panels
KARACHI: Abdul Shakoor Khatri, prominent industrialist and founding chairman of the All-Pakistan Textile Processing Mills Association (APTPMA), has strongly criticized the imposition of an 18% tax on solar energy in the federal budget for 2025-26, calling it counterproductive to Prime Minister Shehbaz Sharif's vision of an energy-efficient Pakistan.
Sharing his views on the federal budget, Abdul Shakoor Khatri expressed deep disappointment, stating that the business community had expected an industry-friendly and people-centric financial plan. Instead, the new taxation measures, particularly on solar energy, have further burdened industries already struggling with high production costs.
'Electricity prices have skyrocketed, making industrial operations uncompetitive. Now, taxing solar energy removes the last affordable alternative, forcing industries to rely on expensive grid electricity—a move that is both unjust and regressive,' Khatri said. He contrasted Pakistan's approach with global trends, where governments incentivise renewable energy to reduce costs and enhance industrial efficiency. 'While the world embraces technological advancements, our policies seem to push industries backward,' he remarked.
Abdul Shakoor Khatri highlighted the budget's failure to address the textile sector's challenges, particularly the sharp decline in local cotton production. 'Instead of burdening imports with taxes, the government should eliminate duties on cotton to sustain industrial operations and preserve employment,' he argued. He urged authorities to introduce special incentives for the textile industry, including easier access to bank loans for modern machinery imports, to enhance global competitiveness.
The veteran industrialist stressed the need for a cohesive policy benefiting the entire textile value chain—from ginning and dyeing to weaving and garment manufacturing. 'The State Bank and Finance Ministry must collaborate on a strategy that supports all segments of the sector,' he said.
He also appealed for concessions for senior citizens, including exemption from tax return filings, and emphasized the urgency of completing critical infrastructure projects like Keti Bandar and the K-4 water scheme. 'Delays in such projects hinder economic growth and exacerbate water and energy shortages,' he noted.
Shakoor Khatri warned that without corrective measures, the budget's current framework risks stifling industrial growth and exacerbating unemployment. He urged the government to revisit the solar tax and other punitive measures, aligning policies with the needs of both businesses and the public.
Copyright Business Recorder, 2025
