The government has accepted four key demands from its coalition partner, the Pakistan Peoples Party (PPP), paving the way for smooth approval of the federal budget in the National Assembly. These demands include a reduction in GST on solar panels and full restoration of funds for Sindh’s universities.
During the budget debate on Wednesday, Deputy Prime Minister and Foreign Minister Ishaq Dar revealed that after detailed consultations with PPP leaders, including Bilawal Bhutto Zardari, Sindh Chief Minister Murad Ali Shah, and Prime Minister Shehbaz Sharif, the government agreed to the party’s demands. This move helped ease criticism from PPP members on the budget proposals.
One major decision was to reduce the proposed GST on solar panels from 18% to 10%. Ishaq Dar explained that although 54% of solar panel parts already had taxes, stakeholders were concerned about the 18% GST on the remaining parts. This reduction aims to address those concerns.
Moreover, the government restored Rs 4.7 billion in funding for Sindh’s universities through the Higher Education Commission (HEC), reversing a proposed cut that had lowered the amount to Rs 2.6 billion. This fund restoration was part of the agreement reached after talks with the PPP.
In addition, the government agreed to review the transfer of inactive Public Works Department (PWD) projects to provinces and the decision to hand over Sindh’s projects to the newly formed Pakistan Infrastructure Development Company Limited (PIDCL). Prime Minister Sharif agreed that PIDCL will now supervise federal development projects across all provinces.
PPP leaders welcomed these decisions. Senior parliamentarian Syed Naveed Qamar expressed gratitude and said the party’s concerns had been largely addressed. He also welcomed the GST reduction on solar equipment but hoped it would be lowered further to 5%. PPP member Ejaz Jakhrani confirmed the resolution of differences between PPP and the ruling Muslim League (N), saying the party would now support the budget fully.