Author: Admin

Govt Slashes Subsidies by Rs180bn to Rs1.18tr for FY2025-26; Power Sector Gets Lion’s Share

Admin
power-sector

ISLAMABAD: In a bid to contain fiscal pressures, the federal government has trimmed the total subsidy allocation to Rs1.186 trillion for the fiscal year 2025-26—down by Rs180 billion from the revised estimate of Rs1.378 trillion in the current year. Of the total, Rs1.036 trillion—nearly 87%—is earmarked for the power sector, reflecting continued support to electricity consumers despite fiscal tightening. This includes Rs249 billion for Inter-Disco tariff differential, Rs125 billion for K-Electric’s tariff support, and Rs95 billion for payments to Independent Power Producers (IPPs). Notably, Rs40 billion has been allocated for…

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Petroleum Carbon Levy Introduced as Pakistan Ups Climate Budget to 8.2pc

Admin
petrol-price

ISLAMABAD: In a major policy shift to fund climate adaptation and discourage fossil fuel use, the federal government has proposed a Rs2.5 per liter carbon levy on petrol, high-speed diesel, and furnace oil in the FY2025-26 budget. This levy will double to Rs5 per litre in the following fiscal year. Additionally, a petroleum levy on furnace oil will also be enforced. This new carbon pricing measure is part of Pakistan’s broader climate strategy, reflected in the allocation of 8.2 per cent of the development budget and 6.9 per cent of…

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Budget FY26: Relief for Salaried Class, New Taxes on Solar Panels, E-Commerce, and Property

Admin
Budget-2025

Finance Minister Muhammad Aurangzeb unveiled the federal budget for FY2025-26, aiming for 4.2% GDP growth and setting a record tax collection target of Rs14,131 billion. The budget offers significant relief for Pakistan’s salaried class while expanding the tax net to include sectors like solar energy, e-commerce, and property. Salaried Class Relief Aurangzeb announced revised income tax slabs with reduced rates across all tiers: A 10% salary hike was also announced for government employees (Grade 1–22). The minister emphasized that these measures aim to retain talent and prevent brain drain. Pension…

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Budget 2025–26: Austerity Budget Offers Modest Relief Amid Tight Fiscal Goals

Admin
2025-2026

ISLAMABAD: In line with the International Monetary Fund’s (IMF) fiscal consolidation demands, Finance Minister Muhammad Aurangzeb on Tuesday presented a tightly constrained federal budget for FY2025–26. Despite stringent measures, the government extended limited relief to salaried individuals and offered targeted incentives to revive the struggling industrial, real estate, and construction sectors. While some concessions were announced, new burdens were also introduced. These include a carbon levy of Rs2.5 per litre on petrol, diesel, and furnace oil — set to double in FY2026–27 — a 5% tax on pensions exceeding Rs10…

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PSA Urges Government to Withdraw Proposed 18% GST on Imported Solar Panels

Admin
soalr energy

Islamabad, June 11, 2025 — The Pakistan Solar Association (PSA) has voiced strong opposition to the proposed imposition of an 18% General Sales Tax (GST) on imported solar panels, as outlined in the Federal Budget 2025–2026. In a formal representation submitted to the Ministry of Power, PSA cautioned that the move could significantly derail Pakistan’s progress in renewable energy adoption at a critical juncture. According to PSA, the imposition of this tax risks reversing the positive momentum built over the past several years, which has enabled widespread access to clean,…

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