Chairman of the National Business Group Pakistan and President of the Pakistan Businessmen and Intellectuals Forum Mian Zahid Hussain said on Monday that concern is mounting over the proposed 18% sales tax on solar panels as announced in the upcoming federal budget.

This move, intended to protect local manufacturers and increase revenue, might inadvertently slow the nation’s shift towards renewable energy, he warned. Hussain, who holds several key positions including Chairman of the National Business Group Pakistan and President of the Pakistan Businessmen and Intellectuals Forum, voiced these concerns on Monday. He highlighted the adverse effects this policy could have on both economic and environmental fronts.

In his address to the business community, Hussain pointed out that Pakistan, plagued by persistent energy shortages, needs to promote technologies like solar power to ensure sustainable energy independence. He argued that any policy that discourages the adoption of renewable energy sources could backfire, hindering progress in energy selfsufficiency.

Acknowledging the government”s need to generate revenue, Hussain called for a balanced approach that considers public demand, environmental protection, and strategic goals. He suggested that imposing a high tax on solar panels would deter households and small businesses from adopting this ecofriendly technology, potentially increasing their operational costs and reducing market competitiveness.

To mitigate these impacts, Hussain proposed a phased or targeted tax policy that offers concessions to lowincome households and rural communities. He also emphasized the importance of fostering domestic solar equipment manufacturing, which would lead to job creation and stabilize prices, but cautioned that such a transition needs time to be effective.

Hussain also referenced the global move towards renewable energy as crucial for reducing carbon emissions and combating climate change. He urged the Pakistani government to rethink its fiscal strategies and draft policies that prioritize public welfare, environmental health, and longterm energy security.

He ended his remarks by calling for urgent stakeholder consultations to prevent loss of confidence in the solar industry and to encourage further investments. Hussain stressed the need for an inclusive approach to policymaking that involves government officials, policymakers, the business sector, and the public to achieve a sustainable and agreeable outcome.

Given the stakes, this tax proposal could have farreaching consequences for Pakistan”s energy landscape and its environmental commitments.