KARACHI: Solar energy sector has urged the government to withdraw the proposed licence condition and new taxes on solar energy systems across the country.
Founder and Chairman Pakistan Renewable Energy Development Forum Irfan Allahwala said the licensing regime and tax burden will discourage the adoption of solar and green energy that will deprive citizens of low-cost, sustainable electricity options.
He also opposed a proposed sales tax on solar energy systems, arguing that it would further burden consumers already facing rising energy costs. Allahwala called on the government to abolish such taxes and additionally waive customs duties on battery cell imports to support local manufacturing of lithium iron batteries.
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Reports indicate that the government, in coordination with NEPRA, has introduced a licensing requirement for solar and green energy systems.
Highlighting the country’s energy access challenges, he noted that nearly a quarter of the population lives in areas beyond the reach of the national grid.
For these communities, he emphasized, battery-backed solar systems remain the most practical and affordable solution for accessing modern energy services.
Muhammad Zakir Ali, CEO Inverex Solar Energy said that the proposed licensing and taxation regimes additional hurdles for consumers seeking to install solar solutions and may slow the growth of renewable energy adoption in the country.
He urged NEPRA to withdraw the licensing policy immediately and avoid actions that could hinder the expansion of green and low-cost electricity across e government.
He said that the growing adoption of solar energy in the country has led to a significant decline in oil imports, reducing the overall import bill and saving billions of dollars in foreign exchange, while also easing pressure on the external account.
Zakir said there is a need to further facilitate the alternative energy sector to attract new investment, particularly in solar energy, battery storage, and electric vehicles.
Copyright Business Recorder, 2026
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