No new duty to be imposed on solar panels in Pakistan — PM

Technicians install solar panel plates on the rooftop of a house on a hot summer day in Karachi on May 27, 2024. (AFP/File)
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Updated 25 June 2024
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No new duty to be imposed on solar panels in Pakistan — PM

  • Widespread reports in recent weeks say government planning to amend net metering regulations, impose new taxes
  • Earlier this month, Minister of State for Power Ali Pervaiz Malik also rejected reports of new taxes on solar panels

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif said on Tuesday no new duties would be imposed on solar panels, reiterating his government’s commitment to pursue renewable energy projects in a country considered one of the most vulnerable to climate change.

Local media outlets have widely reported in recent weeks that the government had decided to amend net metering regulations, a billing mechanism that credits solar energy system owners for the electricity they add to the grid, and would impose new tariffs on the sale and purchase of solar energy produced by users. The reports also claimed the government was planning to impose a fixed tax on those who installed solar panels.

“No new duty will be imposed on solar panels to ensure common man’s access to renewable solar energy,” Sharif was quoted as saying in a statement released by his office after a meeting of the federal cabinet. “Will deliver low-cost renewable solar energy to every citizen.”

Earlier this month, Minister of State for Power Ali Pervaiz Malik also rejected reports of new taxes on solar panels.

“There has been no decision related to the imposition of any tax or duty on solar panels or to generate money by imposing a tax on electricity production by people who have installed these panels,” Malik said.

In the proposed budget 2024-25, in a bid to promote local production of solar panels, inverters, and batteries, the government plans to slash import duties on raw materials needed to manufacture these key components.

Finance Minister Muhammad Aurangzeb also highlighted during his budget speech that the government was offering tax concessions to support the import of plant machinery and related equipment and raw materials necessary for the manufacturing of solar panels to foster local production and meet both export and domestic demands, thereby conserving valuable foreign exchange.

The budget document says subsidies are being provided on the import of goods and components required for manufacturing solar panels, inverters, and batteries to stimulate growth in the solar industry and encourage the use of renewable energy sources within the country.

Pakistan has set an ambitious target to generate 60 percent of its energy from clean and renewable energy sources by 2030. The country also plans to have 30 percent of its vehicles running on electricity by the same year, aligning with global environmental targets and efforts to reduce reliance on fossil fuels.


US national security adviser calls Pakistan deputy PM, discusses counterterror cooperation

Updated 05 March 2025
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US national security adviser calls Pakistan deputy PM, discusses counterterror cooperation

  • Call follows Trump’s statement thanking Pakistan for helping arrest senior Daesh commander
  • Islamabad wants to build on “broad-based” ties with Washington, Ishaq Dar tells Michael Waltz

ISLAMABAD: US National Security Adviser Michael Waltz called Pakistan’s Deputy Prime Minister Ishaq Dar on Wednesday during which the two officials discussed counterterrorism cooperation and bilateral cooperation in various sectors, Pakistan’s state broadcaster said.
The phone call followed US President Donald Trump’s Tuesday announcement about the arrest of a senior Daesh commander implicated in the 2021 Kabul airport bombing that killed 13 US service members. Trump thanked Pakistan for helping US arrest the Daesh commander. 
Prime Minister Shehbaz Sharif responded by thanking Trump for acknowledging Pakistan’s role and support in counterterrorism in a social media post. He said the Daesh commander was an Afghan national who was arrested in a successful operation conducted in the Pakistan-Afghanistan border region. 
“Deputy Prime Minister Ishaq Dar received a call from US National Security Adviser Michael Waltz, who conveyed President Donald Trump’s appreciation and thanks for Government of Pakistan’s efforts in countering terrorism,” state broadcaster Radio Pakistan reported. 
Dar congratulated Waltz on assuming office and said Islamabad looks forward to building on its “longstanding and broad-based” relationship with Washington under Trump and his administration, the state-run media said. 
“He reaffirmed Pakistan’s commitment to continue its cooperation with the United States in the field of counterterrorism,” Radio Pakistan said, adding that Dar also appreciated Trump’s announcement to withdraw US military equipment left behind in Afghanistan.
The two sides reaffirmed their commitment to enhance cooperation in IT, energy and mineral sectors, Radio Pakistan said. 
They also agreed on the need to have continued dialogues on trade, investment, climate change and health as part of a broad-based agenda in the days to come, the state-run media said. 
Pakistan and the US have a history of cooperation in counterterrorism efforts, particularly during the “war on terror” following the Sept. 11 attacks.
Despite periods of strained relations, Pakistan has captured and handed over several Taliban and Al-Qaeda members to US authorities.
However, both nations have faced criticism from human rights organizations, alleging that not all detainees were affiliated with militant groups and highlighting concerns over the treatment of these individuals, including reports of extreme interrogation techniques such as waterboarding and sleep deprivation.
Ties between Pakistan and the US, which mostly remained strained under former prime minister Imran Khan’s premiership from 2018-2022, have improved since Khan’s ouster from office. His predecessor Sharif has called for closer ties with Washington since assuming office in March last year.


Pakistan Navy takes part in multinational exercise ‘Komodo 25’ in Indonesia

Updated 05 March 2025
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Pakistan Navy takes part in multinational exercise ‘Komodo 25’ in Indonesia

  • Exercise Komodo 25 features navies from approximately 38 countries, says Pakistan Navy
  • Says multinational exercise aims to enhance maritime cooperation, strengthen regional security

ISLAMABAD: Pakistan Navy ship Aslat is taking part in the multi-national Komodo 25 exercise in Bali, Indonesia, aimed at enhancing maritime cooperation and strengthening regional security, the navy said on Wednesday. 
The navies of approximately 38 countries are taking part in the Komodo 25 exercise in Bali. The fifth edition of the exercise is taking place under the theme: ‘Maritime Partnership for Peace and Stability.’
“The exercise commenced with a grand Fleet Review, where PNS ASLAT, alongside other warships, helicopters, and aircraft from participating nations, showcased naval capabilities and demonstrated interoperability,” Pakistan Navy said in its press release. 

This handout photo, released by Pakistan Navy on March 5, 2025, shows officials posing for a group photograph at the Multilateral Naval Exercise KOMODO-25 in Bali, Indonesia. (Photo courtesy: Pakistan Navy/Handout)

It said PNS Aslat’s participation in the exercise underscored Pakistan Navy’s commitment to international maritime collaboration and its role in promoting peace, security, and stability in the region. 
Before taking part in the exercise, the ship visited Colombo, Sri Lanka, where its commanding officer called on the commander of the Western Naval Area and other senior military officials.
“Discussions focused on matters of mutual interest, reaffirming the commitment to strengthening bilateral ties in all spheres,” Pakistan Navy said.
It said that Pakistan Navy ships are regularly deployed under the Regional Maritime Security Patrols (RMSP) to fulfill international obligations for maritime security, ensure freedom of navigation on the high seas, and safeguard global commons.
“The visit of PNS Aslat to Sri Lanka and Indonesia will significantly contribute to enhancing naval collaboration between the friendly nations,” the navy said.


Four killed in southwestern Pakistan as IED explosion targets tribal elder — official

Updated 05 March 2025
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Four killed in southwestern Pakistan as IED explosion targets tribal elder — official

  • IED explosion in Khuzdar district targeted tribal elder Samad Sumalani, say deputy commissioner and police official
  • No group has claimed responsibility for attack but suspicion is likely to fall on separatist Baloch Liberation Army

QUETTA: At least four persons were killed and four others were injured on Wednesday when an improvised explosive device (IED) explosion targeted a tribal elder in southwestern Pakistan, a police and government official confirmed.
The blast occurred in Naal, a small town located 55 kilometers from Khuzdar city in Pakistan’s restive southwestern Balochistan province on Wednesday.
Yasir Iqbal Dashti, Khuzdar deputy commissioner, told Arab News that the explosion was caused by explosives fitted inside a motorcycle. A Baloch tribal elder Samad Sumalani was the target of the attack, Dashti said.
“Four people were killed and four others injured after the IED exploded in a crowded street of Naal town,” Dashti said.
Bahawal Khan Pandrani, the station house officer (SHO) of the Naal Police Station, said unknown persons parked the explosive-laden motorbike near a garage where Sumalani was repairing his vehicle at the Naal Bazaar. Sumalani suffered minor injuries in the attack, he said. 
“Two vehicles and two motorbikes caught fire after the blast and turned into ashes,” Pandrani said. 
No group immediately claimed responsibility for the attack but suspicion is likely to fall on ethnic Baloch separatist groups, mainly the Baloch Liberation Army (BLA), which often target tribal elders they see as backed by the state. 
Gas-and-rich Balochistan, which shares porous borders with Iran and Afghanistan, has long faced a low-level insurgency led by separatist groups like the BLA, who accuse Islamabad of exploiting the province’s natural resources, such as gold and copper, while neglecting the local population.
Pakistani governments deny these allegations, saying that it has prioritized Balochistan’s development through investments in health, education and infrastructure projects.
The BLA has emerged as a significant security threat in recent years, carrying out major attacks in Balochistan and Sindh provinces while targeting security forces, ethnic Punjabis and Chinese nationals working on development projects.
The latest attack in Khuzdar happened two days after a suicide attack targeting Pakistan’s security forces in Balochistan’s Kalat, carried out by a woman, killed one paramilitary soldier and injured four others.


Pakistan PM discusses investment opportunities with UAE’s International Free Zones Authority

Updated 31 min 45 sec ago
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Pakistan PM discusses investment opportunities with UAE’s International Free Zones Authority

  • UAE’s IFZA to invest in several existing projects of Pakistan’s special economic zones, says Prime Minister’s Office
  • UAE delegation expresses keen interest in further expanding investment footprint in Pakistan, says Sharif’s office

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday met a delegation of the UAE’s International Free Zones Authority (IFZA) to discuss investment opportunities in Pakistan’s special economic zones (SEZs), a statement from Sharif’s office said. 
Pakistan has attempted to attract foreign investment from regional partners such as China and the UAE through its SEZs. These zones are intended to function as zones of rapid economic growth by using tax and business incentives to attract foreign investment and technology.
Sharif met an eight-member delegation of the IFZA, a UAE business setup authority that provides licensing and regulatory services for companies operating within its jurisdiction, and Aleria in Islamabad, the Prime Minister’s Office (PMO) said. The meeting was attended by IFZA Chairman Martin Gregers Pederson and Ilaria Managing Partner Mana Ali Muhammad Hammad Al Shamsi, along with officials from both organizations.
“Pakistan has vast investment opportunities in several sectors,” Sharif was quoted as saying. “The government is taking steps on a priority basis to provide a business and investment-friendly environment in the country.”

In this handout photo, released by Pakistan Prime Minister Office on March 5, 2025, a delegation of Aleria and International Free Zones Authority UAE gesture during a meeting with Pakistan Prime Minister Shehbaz Sharif in Islamabad on March 5, 2025. (Photo courtesy: Handout/PMO)

The delegation praised Pakistan’s economic stability under Sharif’s leadership and said that the country is emerging as the most suitable market for investment in the region, the PMO said.
“The delegation expressed keen interest in further expanding its investment footprint in Pakistan,” the statement added.

In this handout photo, released by Pakistan Prime Minister Office on March 5, 2025, Prime Minister Shehbaz Sharif witnesses the MoU exchange between International Free Zones Authority of UAE and Board of Investment of Pakistan in Islamabad on March 5, 2025. (Photo courtesy: Handout/PMO)

After the meeting, a memorandum of understanding (MoU) was also exchanged between Pakistan’s Board of Investment (BoI) and the IFZA on investment in Pakistan’s existing SEZs, the PMO said. 
UAE’s IFZA will invest in several projects in Pakistan’s existing SEZs, the statement said. 
The UAE is Pakistan’s third-largest trading partner after China and the United States and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the Gulf country’s foreign ministry.
Pakistan and the UAE have stepped up efforts in recent years to strengthen economic relations. Last year the two countries signed multiple agreements exceeding $3 billion for cooperation in railways, economic zones, and infrastructure development.


Pakistan’s top trade body demands 500 bps interest rate cut as inflation hits nine-year low

Updated 05 March 2025
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Pakistan’s top trade body demands 500 bps interest rate cut as inflation hits nine-year low

  • FPCCI says businesses are dissatisfied with monetary policy since interest rates remain excessively high
  • It says monetary policy should be aligned with government’s vision for economic and export-led growth

KARACHI: Pakistan’s top trade and industry body on Wednesday called for a 500-basis-point (bps) cut in the policy rate, saying businesses remained dissatisfied with monetary policy and viewed interest rates as excessively high despite inflation hitting a nine-year low.
Earlier this month, the government announced inflation had fallen to 1.5 percent in February, down from 2.4 percent in January. However, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) noted the policy rate remained at 12 percent following what it called a “grossly-insufficient reduction of merely 100 bps” in the January 27 Monetary Policy Committee (MPC) meeting.
“After deliberations across all industries and sectors, FPCCI demands an immediate and single-stroke rate cut of 500 basis points in the upcoming MPC meeting on March 10, 2025, to rationalize the monetary policy,” FPCCI President Atif Ikram Sheikh said in a statement.
He added the country’s monetary policy should align with the Special Investment Facilitation Council (SIFC) and the government’s broader vision for economic and export-led growth.
Sheikh said industry estimates suggest core inflation will remain between 1-3 percent in the fourth quarter of FY25 (April-June 2025) due to declining prices and easing inflationary pressures.
He argued with international oil prices expected to stay stable, the government had the conditions necessary to announce a substantial rate cut.
FPCCI Senior Vice President Saquib Fayyaz Magoon also urged policymakers to bring interest rates into single digits to allow Pakistani exporters to compete internationally.
He added that a rate cut should be accompanied by the government’s promised rationalization of electricity tariffs for industries to ensure sustainable growth.
Pakistan has historically maintained a tight monetary stance to curb inflation and stabilize the economy, but the latest calls for aggressive easing highlight growing concerns from businesses over stagnating investment and sluggish industrial activity.