Chairman of the National Business Group of Pakistan, Mian Zahid Hussain, has expressed significant concerns regarding the proposed 18% sales tax on solar panels in the federal budget. Mian Zahid Hussain highlighted the negative impact this tax could have on the adoption of renewable energy solutions in Pakistan.

Hussain explained that while the tax is intended to strengthen local manufacturers and reduce reliance on imports to manage the fiscal deficit, it nonetheless hinders the transition towards sustainable energy sources. He argued that promoting solar technology is not only beneficial but essential for a country suffering from a chronic energy shortage to achieve energy independence.

He further noted that such a tax could prevent households and small enterprises from adopting solar power, potentially increasing their operational costs and reducing market competitiveness. Hussain suggested adopting a moderate approach, proposing exemptions or phased tax increases for economically backward and rural consumers to minimize the negative impacts on national efforts towards energy self-sufficiency.

Additionally, Hussain emphasized the need to enhance local production capacities for solar equipment, which could provide economic stability and create job opportunities. However, he advised that these improvements be implemented gradually to maintain a steady development path.

Highlighting the international importance of renewable resources in combating climate change, Hussain appealed to the government to reassess its financial strategies. He advocated for policies that align with public welfare and environmental protection to ensure Pakistan’s long-term energy security.

In his closing remarks, Hussain stressed the urgent need for dialogue with all parties to maintain confidence in the solar industry and promote continuous investment. He emphasized the importance of involving everyone from government institutions to the general public in shaping policies that support sustainable and inclusive development.