Pakistan, June 17 -- In a major relief for clean energy users, the Senate's Standing Committee on Finance has approved the proposal to abolish 18% sales tax on imported solar panels. The meeting, chaired by Senator Saleem Mandviwalla, also endorsed several other tax-related changes during the session. This move comes after widespread public and political opposition to the proposed tax on solar energy products.

Earlier, Finance Minister Muhammad Aurangzeb had announced the tax in the 2025-26 federal budget. He said the tax aimed to balance competition between imported and locally produced solar panels. The government believed this step would support the local solar manufacturing industry. However, the proposal was met with resistance from...