Stakeholders in the renewable energy sector have urged the Engineering Development Board (EDB) to reduce taxes on lithium battery cells to boost domestic production and promote green energy usage. Irfan Allahawala, Chairman of the Pakistan Renewable Energy Development Forum (PREDF), highlighted that the current 50% tax on lithium battery cells hinders local assembly.

High taxes keep battery prices high, obstructing the transition to renewable energy sources such as solar and wind. Reducing these taxes could reduce reliance on imported petroleum products, lower the import bill, and stimulate local battery manufacturing and technology transfer.

Pakistan imported 26,000 MW of solar panels from 2022 to 2024, all of which required batteries. Lithium-ion battery imports are expected to double from 1.25 GWh in 2024 to 2.5–3 GWh in 2025. Affordable lithium batteries could alleviate energy-driven inflation and attract local investments.