Category: Latest News

Budget 2026-27: EV Imports May Face Up to 25% Sales Tax, Hybrid Vehicle Incentives Likely to Continue

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EV-Imports

ISLAMABAD: The government is considering imposing up to 25 percent sales tax on imported electric vehicles (EVs) in the upcoming federal budget, while existing concessional tax rates for hybrid vehicles are expected to remain unchanged for the next fiscal year, sources told Business Recorder. Several sales tax exemptions currently available to the EV sector are scheduled to expire on June 30, 2026. Among them is the exemption on the import of completely knocked down (CKD) kits for electric vehicles by local manufacturers. The exemption presently covers small electric cars and…

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FCC Takes Up Petitions Challenging Petroleum Levy and Fuel Price Hikes

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petrol-prices-1200.psd

ISLAMABAD: The Federal Constitutional Court (FCC) has admitted two constitutional petitions challenging the imposition of the petroleum levy and recent increases in petroleum product prices, marking a significant legal development in the ongoing debate over fuel taxation and pricing policies. According to court sources, the FCC registrar has formally allotted case numbers to both petitions, allowing them to proceed for judicial consideration. One petition was filed by Jamaat-e-Islami chief Hafiz Naeemur Rehman, who has urged the court to direct the establishment of an independent, expert-assisted commission to examine the constitutional,…

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Petroleum Levy Fuelling Inflation While Rate Hikes Hurt Growth, Says PRAC

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Petroleum-Sector

KARACHI: The federal government’s increasing reliance on the petroleum levy is driving cost-push inflation across the economy, while higher interest rates imposed by the State Bank of Pakistan (SBP) are adding further pressure on businesses and households, according to a new research paper released by the Policy Research and Advisory Council (PRAC). The report argues that Pakistan’s fiscal and monetary policies are working at cross purposes. While the government raises revenue through higher petroleum levies, contributing directly to inflation, the central bank responds by tightening monetary policy, increasing borrowing costs…

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UN Study Warns AI’s Environmental Footprint Could Rival Major Nations by 2030

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NEW YORK: The rapid expansion of artificial intelligence (AI) could place enormous pressure on global energy, water, and land resources by 2030, with developing countries likely to bear a disproportionate share of the environmental costs, according to a new study released by the United Nations University (UNU). The report, titled The Environmental Cost of Artificial Intelligence: Carbon, Water and Land Footprints, was published by the UNU Institute for Water, Environment and Health and highlights the growing environmental impact of AI technologies beyond their carbon emissions. According to the study, electricity…

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Fiscal Consolidation May Trigger Higher Energy Prices, Economists Warn Ahead of FY2027 Budget

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[6:36 PM, 6/9/2026] Bhai: KARACHI: As Pakistan prepares to announce the FY2027 federal budget, economists have warned that the government’s fiscal consolidation strategy could lead to higher energy prices, increased inflation, and greater financial pressure on households and businesses. Experts caution that reliance on indirect taxation, reduced subsidies, and higher non-tax revenues may help narrow the fiscal deficit but could come at the expense of economic growth, industrial competitiveness, and consumer welfare. Speaking to The Express Tribune, Deputy Executive Director and founding head of the Policy Solutions Lab at the…

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