ISLAMABAD (Kashmir English): The federal government on Wednesday postponed the approval of the proposed additional taxes on solar energy users following the opposition from several federal ministers including Prime Minister Shahbaz Sharif.
According to media reports, the decision to delay the net metering policy came during a meeting chaired by the premier, who subsequently instructed the Power Division to review and revise the proposal.
Earlier, the government announced a plan to reduce the buyback tariff for solar users from Rs. 27 per unit to Rs. 8-9 per unit, citing concerns that the previous rate was placing undue pressure on grid consumers.
However, PM Shehbaz has directed the energy minister to revisit the existing net metering policy and propose amendments that do not burden clean energy users.
Under the proposed policy, the government initially planned to buy electricity from solar users at Rs10 per unit, reducing its form Rs. 27 per unit, alongside new tax clauses, sparking backlash from consumers and industry stakeholders.
However, this revision faced strong opposition, leading to its postponement and prompting the government to revisit the policy.
Further consultation on the revised policy is expected in the coming weeks.
In a related development, Prime Minister Sharif praised the country’s successful staff-level agreement with the International Monetary Fund (IMF), which saw the review of the first phase of Pakistan’s $7 billion Extended Fund Facility.
The IMF approved an additional $1.3 billion to support climate change initiatives, further bolstering Pakistan’s financial standing.
During the meeting, the cabinet also approved a reduction in electricity prices by leveraging savings from lower petroleum costs. In addition, agreements between the Central Power Purchasing Agency (CPPA) and bagasse-fired power plants were greenlit under new terms.
