No Fixed Tax on Solar Panels: Owais Leghari


Karachi (TV Report): In the Geo TV program “Aaj Shahzeb Khanzada Ke Saath,” Federal Minister for Power Division Owais Leghari clarified that there are no plans to impose a fixed tax on solar panels. He emphasized that the determination of electricity tariffs for the next year is independent of the IMF’s influence. Leghari expressed a desire for more people to adopt solar energy to reduce the load on the system.

Minister Leghari reiterated the government’s commitment to maintaining existing net metering agreements. While he mentioned that the formula for future net metering systems might change, he assured that this would only occur after a thorough discussion session. He acknowledged that the government is suffering significant losses from the windfall profit environment, which could increase circular debt. Leghari reaffirmed that there are no intentions to impose any fixed tax on solar panels.

He also stated that encouraging more people to switch to solar energy is crucial to alleviate the burden on the system. Leghari pointed out that the country is entangled in capacity payments, a problem stemming from projections made a decade ago that anticipated increased energy demand, which has not materialized. He pledged improvements in transmission issues over the next three to four years and announced plans for the privatization of power distribution companies, whose boards are being restructured due to poor performance.

Discussing reforms, Leghari mentioned that the government has engaged with the IMF on sectoral reforms, which, if implemented, will lower electricity prices and boost demand. He also emphasized the need to improve the fuel mix for power generation by replacing imported coal with local coal. Additionally, he noted that connecting the North and South transmission lines could result in a tariff difference of Rs 2.25 per unit.

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