ISLAMABAD: Pakistan’s government has proposed to eliminate taxes associated with the manufacturing of solar and wind energy equipment in the country, in an effort to boost the production and use of renewable power and overcome power shortages.
A new government budget bill, expected to be approved in parliament within a month, would give renewable energy manufacturers and assemblers in the country a five-year exemption from the taxes.
“Pakistan is paying the heavy cost of an ongoing energy crisis prevailing for the last many years,” Finance Minister Asad Umar said last week in a budget speech.
“In this difficult time, the promotion of renewable energy resources like wind and solar has become indispensable.”
Only about 5 to 6 percent of the power to Pakistan’s national electrical grid currently comes from renewable energy, according to the country’s Alternate Energy Development Board (AEDB).
The proposed tax reduction should boost that by encouraging greater local manufacturing of equipment needed for renewable power expansion, said Asad Mahmood, a renewable energy expert with the National Energy Efficiency and Conservation Authority, which sits within the Ministry of Energy.
REMAINING HURDLES
But manufacturers said the tax breaks likely would not be sufficient to spur expansion of local renewable energy industries.
Naeem Siddiqui, the chairman of Ebox Systems, which assembles solar panels in Islamabad, said the new tax breaks were good news but Pakistani manufacturers would still struggle compete with tax-free, low-priced imports of foreign-built solar panels and other renewable energy equipment.
“The government has already waived off taxes and duties on the import of renewable energy products, and local manufacturers cannot compete with the low-priced imported items,” he said.
Pakistan today imports more than 95 percent of the solar panels and other renewable energy systems it uses, largely from China, said Aamir Hussain, chief executive officer of Tesla PV, one of the largest manufacturers of solar energy products in Pakistan.
“As long as the government will not impose duties on the import of finished products, the local market cannot grow,” he said.
Pakistani manufacturers also might need government help in pushing sales of new Pakistani clean energy products abroad, in order to build bigger markets and lower manufacturing costs, Siddiqui said.
Mahmood, of the energy ministry, said he believed the government would also move to cut existing duties on the import of components used in manufacturing finished renewable energy products, in order to help Pakistani manufacturers.
Taxes on those components have pushed up prices of Pakistani-made renewable energy systems, making them harder to sell and leading several companies to the brink of failure, he said.
Local manufacturers should work with the government to determine which components should be manufactured locally and which imported to ensure costs of locally made wind and solar systems are competitive, he said.
Muhammad Abdur Rahman, managing director of Innosol, a company that imports and installs renewable energy systems, said that cheap imports of renewable energy systems from China remain the main barrier to building more such systems in Pakistan.
“The local industry is facing pricing issues because of low-quality solar energy appliances being imported in the country that are very cheap as compared to the local market,” he said.
That might be resolved in part by the government starting a certification system for renewable energy products to grade them according to quality, he said.
Amjad Ali Awan, chief executive officer of the Alternate Energy Development Board, said the aim of the new policies was for renewable energy to supply 28 to 30 percent of the country’s national electrical grid by 2030.
Energy-short Pakistan moves to power up solar manufacturing
Energy-short Pakistan moves to power up solar manufacturing
- Only 5 to 6 percent of country’s power comes from renewable energy
- Pakistan is paying heavy cost of an ongoing energy crisis, Finance Minister
Karachi hosts scaled-down Lux Style Awards as industry reflects on recognition, evolving formats, inclusion
- 24th edition of prestigious awards held at historic Mohatta Palace after the ceremony in May was canceled
- Awards introduce new Digital Content Creators category amid changing entertainment and media landscape
KARACHI: Pakistan’s entertainment industry gathered in Karachi on Thursday for a smaller, more intimate ceremony marking the cc, as artists reflected on the importance of recognition, evolving formats and broader inclusion across creative fields.
The awards, considered Pakistan’s longest running and most prestigious entertainment honors, were held at the Mohatta Palace, a departure from previous large-scale events at the Karachi Expo Center.
Actress Sanam Saeed, who co-hosted the evening, described the ceremony as “small and intimate,” a tone echoed by several attendees.
The scaled-down format followed an unusual year for the awards. The 23rd Lux Style Awards, scheduled to take place in Lahore in May, were canceled amid the brief war between Pakistan and India, with winners announced digitally and trophies delivered to recipients’ homes.
Among the prominent stars attending this year’s ceremony were Fahad Mustafa, Hania Aamir, Mawra Hocane and Yumna Zaidi. Aamir, who won Actor of the Year – Female (Viewers’ Choice), for the hit television drama Kabhi Main Kabhi Tum, said award platforms play a vital role in sustaining creative industries.
“It’s extremely important to appreciate the art that comes out of your country,” she told Arab News at the red carpet. The drama, she noted, resonated beyond Pakistan, trending in Bangladesh and India during its broadcast.
Addressing fans abroad, Aamir, arguably Pakistan’s most popular celebrity internationally, said:
“Thank you so much for loving beyond borders. We love you as much even more. So thank you so much for appreciating all the hard work that we do.”
She also called for broader recognition across productions.
“I’d like Lux [Style Awards] and every other award show to have a lot more diverse categories to appreciate every single person who is a part of the team. [And] who actually makes the project come to life.”
The Lux Style Awards have long attracted debate over transparency and credibility, a recurring discussion whenever nominations and winners are announced.
Still, many artists said the platform remains essential for motivation and visibility.
“Whenever we discuss the awards, no award will be fair because some people will have certain reservations with it,” producer Abdullah Seja of iDream Entertainment told Arab News. “These might be the most authentic awards in Pakistan [but] obviously there is room for improvement in everything.”
Reflecting shifts in Pakistan’s creative economy, the awards introduced a separate category this year for Digital Content Creators. The inaugural trophy went to real-life couple Rabya Kulsoom and Rehan Nazim, known online as ‘Ron and Cocco’.
“The credit goes to Lux [Style Awards] for introducing the category because content creation is not easy,” Nazim said. “Whoever is doing it, it’s a difficult job. And now it has become a full-time job. You can’t take it lightly and do it on the side. So, we need to recognize the people who are doing it.”
Actress Yumna Zaidi, who won her first film award for Nayab, described the ceremony’s return to Karachi as significant.
“I am so glad that it’s happening in Karachi because it’s been a while,” she said, adding, “Lux [Style Awards] are the strongest because it includes nominations from all the channels and it’s the strongest [competition].”
Mawra Hocane, whose drama Jafaa was nominated for TV Play of the Year (Critics’ Choice), said meaningful storytelling mattered more than trophies.
“Platforms [like these] are very very important but more than that what’s important is that a project strikes a chord with the audience,” she said.
“I do my projects so that we can work on the position of women in society. [And] somehow elevate them, somehow create some space for them. And I think ‘Jafaa’ has done that.”
Music remained a central draw of the evening.
Co-host Sanam Saeed said she was particularly looking forward to live performances.
“Music is the kind of genre that bonds people together and puts Pakistan on the map,” she said.
“We become one when it comes to music, forgetting all the distance, limitations and borders. [And] Our music does that.”
Singer and songwriter Hasan Raheem, popular among younger audiences, also performed during the ceremony and reflected on the value of such platforms.
“These [platforms] are important, honestly,” he said. “I feel like things like these should happen because the real present and the gift that I personally get is the love from people that is the epitome of all the awards. I can never get a better award than that.”
