KARACHI: Stakeholders in Pakistan’s renewable energy sector have called on the Engineering Development Board (EDB) to reduce taxes on lithium battery cells to encourage local manufacturing and accelerate the country’s transition toward clean energy.
According to a statement issued on Friday, Irfan Allahawala, Chairman of the Pakistan Renewable Energy Development Forum, said lithium battery cells are currently subject to nearly 50 percent taxation, making domestic battery assembly commercially unviable.
He noted that the heavy tax burden has significantly increased battery prices, creating a major obstacle to the wider adoption of renewable energy technologies across the country.
Allahawala emphasized the need for a level playing field to attract local and foreign investment in battery manufacturing and energy storage solutions. He said Pakistan imported around 26,000 megawatts of solar panels between 2022 and 2024, all of which require battery storage systems to maximize efficiency and reliability.
He further revealed that lithium-ion battery imports reached approximately 1.25 gigawatt-hours (GWh) in 2024 and are expected to grow to between 2.5 and 3 GWh in 2025 due to rising demand for solar energy storage.
The renewable energy leader stressed that reducing taxes on lithium battery cells would help lower the country’s dependence on imported petroleum products, cut energy costs for consumers, and reduce Pakistan’s import bill while promoting sustainable energy development.
