KARACHI: Stakeholders in the renewable energy sector have urged the Engineering Development Board (EDB) to reduce taxes and duties on lithium battery cells to support domestic production and the wider adoption of green energy as part of the country’s national agenda.
Chairperson of the Pakistan Renewable Energy Development Forum (PREDF) Irfan Allahawala said the government should encourage import substitution of lithium batteries by providing a level playing field and an enabling environment for investors to assemble and manufacture batteries locally.
In a letter addressed to the EDB, he said cells used in lithium batteries are currently subject to taxes of up to 50 per cent, discouraging local assembly and manufacturing.The letter said high taxes and duties keep battery prices elevated in the domestic market, creating hurdles for a faster transition towards renewable and environmentally friendly energy sources in place of costly conventional electricity.
It proposed greater reliance on cost-effective and climate-friendly renewable energy sources, including solar and wind power, across households, commercial establishments and transport sectors to reduce dependence on imported petroleum products and LNG.
The letter also called on the government to rationalise taxes and attract investment in the local market.Allahawala said wider use of lithium batteries could significantly reduce dependence on petroleum products in two- and four-wheel vehicles, helping lower the country’s import bill while encouraging local manufacturing and technology transfer.
Pakistan imported around 26,000MW of solar panels between 2022 and 2024, all of which require battery storage systems. Lithium-ion battery imports reached 1.25 GWh in 2024 and are projected to rise to between 2.5 GWh and 3 GWh in 2025, the letter added.It further said that the availability of affordable lithium batteries could help ease energy-driven inflation and attract further investment into the local market.
