Sindh CM Opposes 18% GST on Solar Panels, Allocates Rs25 Billion for Solar Projects

Murad-Ali1

KARACHI – June 14, 2025: Sindh Chief Minister Syed Murad Ali Shah, in a detailed post-budget press conference, strongly opposed the federal government’s proposed 18% General Sales Tax (GST) on imported solar panels, calling it unjust and counterproductive to the nation’s clean energy goals.

Highlighting Sindh’s commitment to renewable energy, the Chief Minister announced a significant allocation of Rs25 billion for solar projects, which will also contribute to climate change mitigation. He acknowledged the rising poverty linked to the stringent IMF fiscal constraints but emphasized that the provincial government is still prioritizing sustainable development.

The Chief Minister revealed that Karachi’s K-IV water supply project is also being integrated with renewable energy solutions, including plans for a high-capacity desalination plant powered by clean sources. A Rs20 billion feeder line has been earmarked to facilitate this effort.

Shah criticized the federal government for excluding major energy and infrastructure projects in Sindh from the Public Sector Development Programme (PSDP) and expressed concern over the slashed federal allocation for the Sukkur-Hyderabad Motorway. He stressed that such exclusions and tax burdens, like the proposed solar GST, undermine the province’s developmental potential.

Further, Shah announced a Rs600 billion water and sanitation initiative to uplift rural living standards, indirectly supporting health and energy efficiency by reducing waterborne illnesses and boosting clean water infrastructure.

In his remarks, Shah reiterated that the Pakistan People’s Party will not support the federal budget unless development funds are fairly distributed and unjust taxation like the solar GST is reversed.

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