Government Clarifies IMF Has Not Demanded Tax on Solar Panels
Islamabad: Federal Minister for Finance Muhammad Aurangzeb has clarified that the International Monetary Fund (IMF) has not made any demand regarding the imposition of tax on solar panels.
Speaking during a television programme, the finance minister rejected reports claiming that the government had considered imposing sales tax on solar panels ahead of the budget announcement. He stated that neither the IMF had placed any such condition nor was it part of any policy under consideration by the government.
Aurangzeb said the government is actively working on major reforms in the energy sector to reduce electricity prices and improve the competitiveness of the industrial sector. He noted that expensive electricity remains a major challenge for industries, the IT sector, and other key segments of the economy.
He further said that efforts are underway to eliminate cross-subsidies in the power sector and privatize distribution companies (DISCOs). According to him, expressions of interest have already been issued for the first phase involving three companies, while two more are expected soon.
The finance minister added that the government is committed to improving inefficiencies in the power sector, and positive results are expected in the coming years. He said the current single-buyer model is being replaced with a competitive market system.
Aurangzeb emphasized that the overall goal is to make the energy sector more transparent, efficient, and investment-friendly in order to ensure long-term economic stability.
