ISLAMABAD: (Web Desk) – Finance Minister Muhammad Aurangzeb has dismissed claims that the government was considering imposing a tax on solar panels ahead of the federal budget. Speaking during a private television program, he clarified that no such proposal was ever discussed and stressed that the International Monetary Fund (IMF) had not made any demand regarding taxation on solar equipment.
The minister said the government is actively pursuing broad structural reforms in the energy sector aimed at lowering electricity costs, improving the ease of doing business, and boosting the competitiveness of major industries across the country.
Addressing concerns about high power tariffs and capacity payments accumulated over the years, Aurangzeb acknowledged that costly electricity continues to affect sectors such as manufacturing, information technology, mining, and other energy-intensive industries.
Solar System Prices Rise Sharply Before New Budget Announcement
He noted that the government, working closely with Energy Minister Awais Leghari, has already taken measures to remove cross-subsidies impacting industrial consumers. Reforms under the wheeling policy and other power-sector initiatives are also being implemented to enhance operational efficiency.
According to the minister, the government’s focus has shifted from temporary relief measures to long-term structural changes that are expected to produce sustainable results over time rather than immediate gains.
A major part of the reform strategy involves the privatisation of electricity distribution companies (DISCOs). Aurangzeb revealed that Expressions of Interest (EOIs) have already been issued for three distribution companies, while two more are expected shortly. He expressed optimism that the first group of DISCOs would be handed over to private management by year-end, with additional phases to follow.
The minister emphasized that effective regulatory oversight would remain crucial during and after the privatisation process, adding that efforts are underway to strengthen the regulatory framework.
He also highlighted plans to replace the existing single-buyer electricity market model operated by the Central Power Purchasing Agency (CPPA) with a competitive multi-buyer system. The move is expected to reduce market concentration, encourage competition, and improve overall efficiency in the power sector.
Comments are closed, but trackbacks and pingbacks are open.