Category: Latest News

KHCL Seeks Formal Extension of Support for \$2.5bn Kohala Hydropower Project to Safeguard Pakistan’s Water Rights

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Hydropower

ISLAMABAD: Kohala Hydro Company Limited (KHCL) has formally requested an extension of its Letter of Support (LoS) for the \$2.5 billion, 1,124 MW Kohala Hydropower Project (HPP) until September 30, 2027, citing strategic and legal imperatives tied to Pakistan’s rights under the Indus Waters Treaty (IWT). In a detailed letter to the Managing Director of the Private Power and Infrastructure Board (PPIB), KHCL CEO Liu Yonggang emphasized the critical importance of timely development of the Kohala HPP to assert and preserve Pakistan’s hydroelectric rights on the Jhelum River, guaranteed under…

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SIFC Reviews \$6bn Refinery Upgrade Plans Amid IMF Pushback on Tax Proposals

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Refinery-Upgrades

ISLAMABAD – The Special Investment Facilitation Council (SIFC) on Wednesday deliberated on the future of \$6 billion refinery upgrade projects, following the IMF’s rejection of key government tax proposals aimed at supporting the oil refining sector. The government had earlier sought to restore zero-rated tax status and impose a 10% sales tax on petroleum products (POL) to facilitate refinery modernization. However, the IMF turned down both proposals, urging the government to submit alternative measures. Sources familiar with the meeting said the authorities would continue to engage IMF officials until the…

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Govt Mulls Abolishing Sales Tax on Solar Panel Imports, Faces Rs20bn Revenue Hit

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ISLAMABAD – The government is poised to abolish the proposed 18% sales tax on the import of solar panels, a move expected to cost the national exchequer approximately Rs20 billion in the fiscal year 2025–26. According to official sources, there is a strong possibility that the proposed tax will be either fully withdrawn or further reduced from the revised rate of 10% currently under consideration. To offset the revenue shortfall, the Federal Board of Revenue (FBR) is preparing alternative measures to be submitted for approval by Prime Minister Shehbaz Sharif.…

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GST on Solar Panels Slashed to 10pc Amid Budget Revisions; Provinces Retain Digital Tax Authority

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Solar-Panels

ISLAMABAD – Deputy Prime Minister and Foreign Minister Ishaq Dar on Wednesday announced a major revision in the federal budget, confirming that the proposed General Sales Tax (GST) on imported solar panels has been reduced from 18% to 10% following consultations with coalition partners and stakeholders. Speaking during the National Assembly session, Dar clarified that the digital sales tax on services would remain under the jurisdiction of provincial governments, in line with the constitution. He noted that valid concerns over digital taxation were addressed through thorough engagement with stakeholders and…

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Pakistan Faces Looming LPG Shortage Amid Regional Conflict and Limited Storage

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lpg

ISLAMABAD: Chairman of the LPG Distributors Association, Irfan Khokhar, has issued a stark warning that the ongoing Iran-Israel conflict could trigger a nationwide LPG crisis in Pakistan if immediate steps are not taken to bolster storage and ensure alternative import routes. Highlighting the critical shortfall, Khokhar said Pakistan is already facing an LPG deficit, and the closure of borders amid the conflict is worsening the situation. He urged the government to urgently arrange special imports to avert a looming supply shock. He warned that the disruption could empower the LPG…

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