KARACHI: Stakeholders in the renewable energy sector have urged the federal government to slash taxes and duties on lithium battery cells to support domestic production and utilization of green energy across the country as part of the national agenda.
Chairman of the Pakistan Renewable Energy Development Forum (PREDF), Irfan Allahawala, has that the government should encourage import substitution of lithium batteries by providing a level playing field and an enabling environment for new investors to assemble and manufacture lithium batteries locally.
In a letter addressed to the Engineering Development Board (EDB), he stated that cells used in lithium batteries are currently taxed at an exorbitant rate of 50 percent, which discourages the local assembly of batteries.
The letter further stated that high taxes and duties keep battery prices elevated in local markets, creating a barrier to the rapid transition toward renewable and environmentally friendly energy sources and away from expensive conventional electricity sources.
To reduce reliance on imported petroleum products and LNG, it was proposed to increase dependence on cost-effective and climate-friendly renewable energy sources, including solar and wind power, across domestic and commercial sectors such as factories, offices, buses, cars, motorcycles, and household appliances. In this regard, the government should also rationalize taxes in the local market and attract investments.
He further said that this would help significantly reduce dependence on petroleum products in two- and four-wheel vehicles, thereby lowering the country’s import bill. It would also encourage local assemblers to manufacture batteries domestically and facilitate technology transfer.
Pakistan imported approximately 26,000 MW worth of solar panels during 2022–2024, all of which require batteries. In 2024, lithium-ion battery imports reached 1.25 GWh and are projected to increase to 2.5-3 GWh in 2025, the letter added.
Copyright Business Recorder, 2026
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