The federal government has blocked the approval of additional taxes on solar energy users and directed a review of the net metering policy.

Meanwhile, the cabinet has approved utilising reductions in petroleum prices to lower electricity tariffs for consumers.

The decision was made during a federal cabinet meeting chaired by Prime Minister Shehbaz Sharif on Wednesday.

According to the official statement, the cabinet endorsed the Power Division’s recommendation to use savings from reduced fuel prices to bring down electricity costs.

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Additionally, the cabinet granted approval for the Central Power Purchasing Agency to sign revised agreements with power plants operating on bagasse.

Amendments to the Whistleblower Protection and Vigilance Commission Act, as well as modifications to income tax, sales tax on services, and federal excise duties within the Islamabad Capital Territory, were also sanctioned.

Furthermore, the cabinet reinstated tax rebates for temporary teachers and researchers through the approval of the Income Tax Second Amendment Bill.

It also ratified decisions taken by the Cabinet Committee on Privatization and the Economic Coordination Committee (ECC).

However, the ECC-approved solar net metering regulations were sent for further consultation, with recommendations to be resubmitted after incorporating feedback from all stakeholders.

PM Shehbaz Sharif addresses cabinet meeting

Prime Minister Shehbaz Sharif expressed satisfaction over the recent staff-level agreement between Pakistan and the International Monetary Fund (IMF) under the Extended Fund Facility.

He highlighted that the IMF’s completion of the first review of the $7 billion facility reflects confidence in Pakistan’s economic stability.

During the meeting, the prime minister acknowledged the IMF’s praise for Pakistan’s progress in restoring macroeconomic stability, improving fiscal conditions, and reducing inflation to its lowest level since 2015.

He noted that the IMF had also recognised Pakistan’s economic reforms and governance improvements.

PM Shehbaz commended Finance Minister Muhammad Aurangzeb and the economic team for securing the agreements, emphasising that they will help stabilise Pakistan’s economy and set it on a path toward long-term recovery.

He reiterated the government’s commitment to tax reforms, energy sector efficiency, and private sector growth, citing positive economic indicators over the past year as proof of successful policies.

He concluded by urging collective efforts for national development, emphasising that Ramazan serves as a reminder of the blessings of Pakistan and the shared responsibility to ensure its prosperity.