ISLAMABAD: Finance Minister Muhammad Aurangzeb has clarified that there was no proposal or discussion to impose taxes on solar panels, rejecting speculation that the government planned any such measure in the recent budget process.
Responding to questions regarding energy pricing and renewable energy policy, the minister said that the issue of taxing solar panels was “never part of any formal discussion,” adding that neither the government nor the International Monetary Fund (IMF) had raised any such demand.
The clarification comes amid ongoing public debate over rising electricity costs and the affordability of alternative energy solutions, particularly solar power, which has seen increasing adoption across households and businesses.
The minister noted that Pakistan’s broader energy challenges stem from high capacity charges imposed by previous administrations, which continue to contribute significantly to elevated electricity prices. He said this burden has made energy expensive for industrial users, IT companies, and other energy-intensive sectors.
Aurangzeb emphasized the need for efficient and cost-effective energy solutions to improve competitiveness and reduce the cost of doing business in the country. He said energy pricing remains a key factor affecting industrial output and economic growth.
He further highlighted ongoing structural reforms in the energy sector, including efforts to eliminate cross-subsidies, introduce wheeling arrangements, and transition toward a more competitive electricity market structure.
The minister also underscored that long-term reforms—rather than short-term measures—are being pursued to address systemic inefficiencies in the power sector and improve overall energy governance.
On renewable energy concerns, he reiterated that solar policy remains unchanged and that the government is not considering additional taxation on solar equipment.
