Finance Minister Muhammad Aurangzeb said the International Monetary Fund never demanded an increase in solar panel sales tax. He added that the matter was never under discussion.
Speaking on the local news channel ARY News programme “Aitraz Hai,” Aurangzeb rejected reports. He said the federal government had not considered imposing taxes on solar panels before the budget.
“The matter was never under discussion, nor was there any such demand from the IMF,” he said.
Aurangzeb said the federal government was pursuing structural reforms in the energy sector to reduce electricity costs. In addition, these reforms aim to improve the business environment and strengthen industrial competitiveness.
He acknowledged that expensive electricity remains a major challenge for manufacturing, information technology, mining and other energy-intensive sectors.
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The finance minister said the federal government was working with Energy Minister Awais Leghari to remove cross-subsidies for industry. Besides that, they seek to advance reforms through the wheeling policy.
He said the government was shifting from short-term relief measures toward long-term structural reforms. He added that results are expected over the coming years.
Aurangzeb said privatisation of electricity distribution companies remains a key part of the reform plan. He said Expressions of Interest had been issued for three DISCOs, while two more were expected soon.
The minister said the first batch of distribution companies could move to private-sector management by the end of the year. Subsequently, others will follow in phases.
He said Pakistan also plans to move away from the single-buyer electricity market run through the Central Power Purchasing Agency. Instead, the country will shift toward a competitive multi-buyer system.
