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Pakistan reduces sales tax on imported solar panels from 18 % to 10 % amid parliamentary pushback

Pakistan reduces sales tax on imported solar panels from 18 % to 10 % amid parliamentary pushback
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A worker unloads solar panels from a vehicle at a market, in Karachi, Pakistan March 26, 2025. (REUTERS)
Pakistan reduces sales tax on imported solar panels from 18 % to 10 % amid parliamentary pushback
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View of solar panels with cows in the background at an Interloop owned dairy farm, in Sheikhupura, Pakistan April 8, 2025. (REUTERS)
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Updated 56 min 37 sec ago

Pakistan reduces sales tax on imported solar panels from 18 % to 10 % amid parliamentary pushback

Pakistan reduces sales tax on imported solar panels from 18 % to 10 % amid parliamentary pushback
  • The government proposed 18% GST on imported solar panels during budget 2025-26
  • Pakistan imported 17 gigawatts of solar panels in 2024, twice the previous year’s volume

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.


Pakistan reports first Congo virus death of 2025 in Karachi

Pakistan reports first Congo virus death of 2025 in Karachi
Updated 18 June 2025

Pakistan reports first Congo virus death of 2025 in Karachi

Pakistan reports first Congo virus death of 2025 in Karachi
  • Virus is transmitted through tick bites or direct contact with blood of infected animals
  • Pakistan’s southwestern province of Balochistan reported 23 Congo virus cases in 2024

KARACHI: A 42-year-old man lost his life after contracting the Crimean-Congo Hemorrhagic Fever (CCHF), marking the first confirmed fatality from the virus in Pakistan’s southern Sindh province this year, the health department said on Wednesday.

The fatality rate for the Congo virus ranges from 10 percent to 40 percent, depending on the quality of health care, timeliness of treatment and the patient’s overall health, according to the World Health Organization.

The virus, which is endemic in parts of Africa, Europe and Asia, is primarily transmitted through tick bites or contact with the blood or tissues of infected animals.

“First case of Congo virus [has been] reported in Sindh,” the Sindh Health Department said in a statement on Wednesday.

“42-year-old male was a resident of District Malir,” it continued. “The test report came out positive on June 16 and the patient passed away on June 17.”

Pakistan’s southwestern Balochistan province reported 23 Congo virus cases in 2024, with five deaths since January last year.

Local medical practitioners said most cases were diagnosed during the summer, when the likelihood of the virus spreading increases, particularly around the Eid Al-Adha festival.

The Islamic holiday, marked by the mass slaughter of animals, typically leads to greater human-animal interaction and exposure to infected livestock.

Pakistan witnessed its first case of Congo virus in 1976 and remained a major victim for years, according to the National Library of Medicine.

The country faces major challenges in combating Congo virus every year due to its specific geographical position and a majority of the population being involved with animal husbandry, it added.

There is no approved vaccine for its prevention.

The European Medicines Agency in May 2024 approved a Phase I clinical trial in Sweden for a DNA-based vaccine candidate, N-pVAX1, targeting the Congo virus.

Separately, the University of Oxford in August 2023 launched a Phase I trial of its ChAdOx2 CCHF vaccine, based on the Oxford/AstraZeneca Covid-19 platform, to assess safety and immune response.


Pakistan rescues injured Indian sailor amid post-war tensions with New Delhi

Pakistan rescues injured Indian sailor amid post-war tensions with New Delhi
Updated 18 June 2025

Pakistan rescues injured Indian sailor amid post-war tensions with New Delhi

Pakistan rescues injured Indian sailor amid post-war tensions with New Delhi
  • Pakistan evacuates the injured sailor from a Liberian-flagged tanker with an all-Indian crew
  • Rare humanitarian gesture follows recent Pakistan-India war amid strained diplomatic ties

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.


Pakistan unveils draft tariff policy to drive export-led growth

Pakistan unveils draft tariff policy to drive export-led growth
Updated 18 June 2025

Pakistan unveils draft tariff policy to drive export-led growth

Pakistan unveils draft tariff policy to drive export-led growth
  • The policy plans to phase out Additional Customs Duties, rationalize the tariff structure
  • It aims to reduce tariffs on raw materials, deliver $700 million in benefits to industries

ISLAMABAD: Pakistan on Wednesday unveiled a draft National Tariff Policy 2025-30 at a regulatory reforms conference, aiming to shift the country toward an export-led growth model by overhauling its trade tariff structure to boost industrial productivity, investment and competitiveness.

The event was organized by the Board of Investment (BoI), and attended by senior government officials, diplomats and private sector representatives.

The policy sets out sweeping reforms, including the phasing out of Additional Customs Duties (ACDs) within four years, elimination of Regulatory Duties (RDs) and the 5th Schedule within five years, and the creation of a simplified four-tier Customs Duty structure of 0 percent, 5 percent, 10 percent and 15 percent.

Key sectors expected to benefit include textiles, engineering, pharmaceuticals and information technology, with the policy designed to lower production costs and attract businesses.

“The National Tariff Policy 2025-30 is designed to create a predictable, transparent and investment-friendly tariff structure,” said Rana Ihsaan Afzal, Coordinator to the Prime Minister on Commerce, at the conference.

“By facilitating duty-free access to raw materials, phasing out ACDs and RDs and supporting nascent and green industries, this policy paves the way for innovation, employment generation and sustained economic growth.”

Afzal said implementation will begin with tariff reductions on approximately 7,000 tariff lines, mainly raw materials and intermediate goods, expected to deliver an estimated Rs200 billion ($700 million) in benefits to trade and industry.

“These reforms will enable Pakistan’s industries to scale, compete globally and shift toward higher value-added exports,” he added. “With these changes, we anticipate not just stronger GDP growth, but also increased employment, improved industrial productivity and enhanced investor confidence.”

According to an official statement issued by the BoI, the participants lauded the government’s efforts to streamline regulation and modernize trade facilitation, calling the draft policy a significant step toward Pakistan’s long-term economic transformation.
 


Pakistan calls for Iran-Israel ceasefire as deputy PM heads to OIC talks 

Pakistan calls for Iran-Israel ceasefire as deputy PM heads to OIC talks 
Updated 18 June 2025

Pakistan calls for Iran-Israel ceasefire as deputy PM heads to OIC talks 

Pakistan calls for Iran-Israel ceasefire as deputy PM heads to OIC talks 
  • Meeting in Turkiye will focus on coordinated diplomacy to de-escalate Iran-Israel standoff, address aid crisis in Gaza
  • For Pakistan, a direct neighbor of Iran, prolonged clash threatens border security, could aggravate sectarian tensions

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Wednesday urged global powers to broker a ceasefire between Iran and Israel, as Deputy Prime Minister Ishaq Dar prepares to attend a meeting of foreign ministers of member states of the Organization of Islamic Cooperation (OIC).

The meeting in Turkiye from June 21-22 is expected to focus on coordinated diplomatic steps to de-escalate the Iran-Israel standoff and address the continuing humanitarian crisis in Gaza.

Thousands of people were fleeing Tehran on Wednesday after Israeli warplanes bombed the city overnight and the air fight between the two Middle Eastern powers entered the sixth day amid media reports US President Donald Trump was considering options that include joining Israel in attacking Iranian nuclear sites.

“I feel that ... global countries should try hard for a ceasefire,” Sharif told a federal cabinet meeting, calling the escalation “regrettable” and condemning what he described as Israel’s aggression against Pakistan’s neighboring “brotherly” country of Iran. 

Iran launched retaliatory strikes last week after Israeli forces attacked sites linked to Iran’s nuclear and military infrastructure on June 13. Iranian officials say at least 224 people, mostly civilians, have been killed, while Israel has reported over 20 deaths.

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 other Arab allies and the West.

Pakistan does not recognize Israel and has historically aligned itself with the Palestinian cause of an independent state. 


Pakistan’s PIA sale draws interest from leading firms, army company ahead of deadline

Pakistan’s PIA sale draws interest from leading firms, army company ahead of deadline
Updated 18 June 2025

Pakistan’s PIA sale draws interest from leading firms, army company ahead of deadline

Pakistan’s PIA sale draws interest from leading firms, army company ahead of deadline
  • Pakistan trying to offload state-owned companies to meet IMF demands
  • Previous sales of airline have failed over PIA’s poor conditions, terms

ISLAMABAD: Two of Pakistan’s leading business groups and a company backed by the powerful military will bid for the country’s ailing national carrier, a divestment the government hopes will kickstart the privatizations of state-owned enterprises.

The sale of Pakistan International Airlines will be the first major privatization for around two decades, with the sale of loss-making state-owned enterprises a condition of last year’s $7 billion bailout by the International Monetary Fund.

The government tried unsuccessfully to last year offload a stake in PIA, which is a major burden on its budget, but the sale was aborted because of the poor state of the airline and the conditions attached to any purchase.

Expressions of interest are due by Thursday for an up to 100 percent stake in the airline, with industry insiders expecting more bidders to emerge. They say the deal has been sweetened with a tax incentive and bolstered by signs of a turnaround in PIA’s fortunes.

The Ministry of Privatization did not respond to a request for comment.

Among those planning bids are the Yunus Brothers Group, owners of the Lucky Cement and energy companies; and a consortium led by Arif Habib Limited that includes Fatima Fertilizer, Lake City, and The City School, sources within the companies said.

Fauji Fertilizer Company, which is part-owned by the military, said it will be making an expression of interest, in a notice to the Pakistan Stock Exchange. Fertilizer production is a lucrative sector in Pakistan.

A group of PIA employees has also come forward to bid.

“The employees will use their provident fund and pension, in addition to finding an investor to place a bid. We’re doing this to save jobs and turn around the company,” said Hidayatullah Khan, president of the airline’s Senior Staff Association.

The airline was restructured last year, offloading approximately 80 percent of its legacy debt to the government to make it more attractive to investors. But bidders remain concerned about overstaffing and the ability to fire employees.

Last year’s sale effort failed when the sole bid of $36 million fell far short of a $305 million floor price.

Interested parties walked away before bidding, partly because the government was not willing to give up 100 percent of the company, with bidders saying they did not want the government to remain involved.

Since then, PIA has posted its first operating profit in 21 years, driven by cost-cutting reforms, after making cumulative losses of $2.5 billion.

This success of the current process will depend on whether the government is willing to give up a 100 percent stake, industry insiders said.

They added that a government decision this month to remove the requirement of paying sales tax upfront on the lease of new aircraft, which had been an impediment, will make the deal more attractive.

PIA resumed flights to Europe in January after the European Union lifted a four-year safety ban. The airline has also approached UK authorities for permission to resume services to London and Manchester.

The restoration of international routes is vital to future growth opportunities and successful bidders are likely to bring in foreign airlines as operators.