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ہومNationalBudget 2025-26: Lawmakers laud economic stability measures, call for solar tax repeal

Budget 2025-26: Lawmakers laud economic stability measures, call for solar tax repeal

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ISLAMABAD, Jun 19 (APP):Lawmakers in the Upper House on Thursday strongly condemned Israel’s recent aggression against Iran, and expressed grave concerns over the country’s fiscal policies, particularly the imposition of taxes on essential sectors and the economic hardships facing ordinary citizens.
While participating in the general discussion on Budget 2025-26, Senator Dost Ali Jeesor condemned the Israeli attack on Iran and praised Pakistan’s principled stance and the adoption of a resolution condemning the aggression.
He said the Organization of Islamic Cooperation (OIC) should convene an emergency session, or alternatively, a conference of Muslim foreign ministers should be called in these testing times.
The Senator commended Bilawal Bhutto Zardari’s recent diplomatic endeavors that have successfully shaped a positive global narrative.
Jeesor criticized the 18 percent solar tax, calling it unfair and burdensome on low-income families who invest in solar panels and batteries.
He called for the total elimination of the tax, asserting that the recent cut—lowering the GST on solar panels by more than 10 percent from the previous 18 percent—remains insufficient.
Senator Muhammad Abdul Qadir presented an overview of the federal budget, said that we would need more loans to finance ongoing development projects, pension disbursements, and social welfare programs like BISP.
He cautioned that Pakistan’s debt servicing costs are alarmingly high, with interest payments consuming 30 to 35 percent of loans taken by successive governments.
Abdul Qadir advocated for an export-led growth model to stabilize the economy, reduce dependence on imports, and ease pressure on the currency. He urged government support for the burgeoning IT sector, lamenting the imposition of taxes on e-commerce businesses, which could stifle growth.
Senator Jam Saifullah Khan strongly condemned Israel’s “war crimes” against civilians in Iran and criticized Israeli Prime Minister Netanyahu.
The lawmaker appreciated the efforts of the high-level peace delegation led by Bilawal Bhutto Zardari and acknowledged his role in raising Pakistan’s voice for peace on international forums.
Jam Saifullah pressed for the commencement of the long-delayed M-6 Motorway project, criticizing insufficient PSDP allocations. He also raised environmental concerns, opposing taxes on electric and hybrid vehicles, which he said undermine national climate goals. Furthermore, he called for increased support for salary earners and pensioners to fight inflation.
Senator Haji Hidayatullah Khan highlighted the disproportionate tax burden on the poor, deeming the 10 percent pay raise for government employees inadequate in the prevailing economic crisis. He warned of declining agricultural productivity and stressed urgent government intervention to revive the sector.
Calling solar energy a vital resource for Pakistan’s future, Hidayatullah demanded the removal of taxes on solar panels to encourage wider adoption.
Citing a World Health Organization report, he stressed that 45 percent of people live below the poverty line and over 270 million children remain out of school, underscoring the urgent need to prioritize education and healthcare.
On the ex-FATA region, the Senator argued that the people, having suffered greatly from terrorism, should be exempted from taxes and instead provided with employment opportunities leveraging the region’s abundant natural resources.
Senator Rubina Qaimkhani, strongly condemned Israel’s recent aggression against Iran, stating that such hostile ambitions must be curbed.
She emphasized that Iran is a brotherly country and expressed full solidarity with it. She urged the international community to play its role in ensuring peace in the region, warning that if global powers fail to take the matter seriously, it could potentially trigger a third world war.
During her remarks on the Finance Bill 2025, she called for a reduction in the burden of excessive taxation, stressing that the budget allocations for education and health should be increased. She said that farmers and all segments of society are looking to the government for meaningful relief.
Commenting on the proposed 10 percent salary increase for government employees, she termed it as insufficient. She also criticized the imposition of taxes on solar panels and expressed concern over the neglect of the agriculture sector.
Referring to the importance of the Hyderabad-Sukkur Motorway, she said that the allocated Rs 15 billion for the project is inadequate and needs to be revised upward to match the project’s strategic significance.
Senator Muhammad Aslam Abro highlighted the rising adoption of solar energy in rural areas, underscored its benefits for underserved communities. He demanded the government to end tax on solar panels to support this positive trend.
Senator Abro pointed out that the Sukkur-Hyderabad motorway remains a low priority, leaving Sindh with no operational motorways. He stressed that the lone planned motorway in the province, the M-6, is strategically vital but underfunded, with the current allocation of Rs15 billion deemed insufficient. “The budget for M-6 must be increased to reflect its importance,” he urged.
He criticized the recent introduction of a carbon tax alongside the already imposed illegal petroleum levy. He said although these measures were taken to discourage the use of petrol and diesel vehicles but questioned the readiness of Pakistan’s local industry to produce electric vehicles (EVs). “If EVs must be imported, it will affect our economy. Until local production is viable, the carbon tax should be repealed,” he argued.
He also condemned Israel’s recent attack on Iran, reaffirming Pakistan’s stance against aggression in the region.
Senator Ahmed Khan criticized the 10 percent tax on solar panels, and said it would be excessive and counterproductive.
He emphasized the need for a zero-tax policy on solar panels to encourage the growth of this vital sector. “Solar power must be allowed to compete fairly with Independent Power Producers (IPPs),” he said, warning that taxation on solar panels undermines efforts to expand renewable energy usage.
Senator Husna Bano, paid tribute to the armed forces for giving a befitting response to Indian aggression.
She said Balochistan is rich in natural resources, and expressed concern over the lack of access to clean water, gas, and electricity across the province.
The lawmaker lauded the government for announcing the construction of road infrastructure connecting Karachi to Quetta and Quetta to Chaman, added that such initiatives are vital for regional connectivity and development.
Furthermore, she lauded the government’s focus on maintaining quality in the education sector within the budget and urged that these improvements be extended to every district of the province.
Senator appreciated the reduction in tax on solar panels from 18 percent to 10 percent, termed it a relief for consumers amid rising energy costs.
Senator Nadeem Ahmed Bhutto called for reforms in the mechanism used for budget formulation. He emphasized that consultation must take place before the budget book is finalized and printed.
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