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Category: Power/Energy

Energy is the backbone of development. At Chakor, our Power and Energy section tracks the projects, policies, and investments driving Pakistan’s energy landscape, from hydroelectric and solar initiatives to grid infrastructure and urban power solutions.

Understanding the energy sector is essential for anyone invested in Pakistan’s long-term growth and the real estate and development projects that depend on it.

CategoriesNews Budget Economy Power/Energy Tax

From Solar to Stocks: Pakistan’s Budget 2026-27 Promises Tax Continuity

ISLAMABAD: The federal government has decided to maintain existing tax rates on solar panels, stationery items, and the stock market in the upcoming Budget 2026-27, providing relief to consumers and investors who had feared potential increases.

According to senior tax officials, the earlier proposal to raise sales tax on solar panels from 10 to 18 percent has been formally withdrawn. This decision is expected to sustain the momentum of solar energy adoption across Pakistan, particularly among households and small businesses increasingly reliant on renewable energy solutions amid persistent power outages.

Similarly, the proposed hike in sales tax on stationery items will not be pursued in the forthcoming budget. The move is likely to be welcomed by students, educational institutions, and the stationery trade, which had raised concerns about the impact on affordability of any such increase.

Stock market taxation will also remain unchanged, effective July 1, 2026, offering a degree of stability to investors and market participants who have been closely monitoring pre-budget policy signals.

On the income tax front, the government intends to raise the threshold for the highest tax slab for salaried individuals. Simultaneously, the surcharge currently levied on the highest income earners is set to be abolished, representing a structural adjustment aimed at rationalising the direct tax framework.

A significant development for the export sector is the likely abolition of the one percent tax on exports. Highly placed officials confirmed that this relief measure forms part of a broader exporter support package to be announced in the budget speech. The industry has long advocated for the reinstatement of the Final Tax Regime with a one percent turnover tax, calling for protection from undue regulatory pressure.

The tax status of the real estate sector, however, remains under deliberation and has not yet been finalised.

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Solar Project Set to Turn Keenjhar Lake
CategoriesNews Developments Economy Investment Power/Energy Urban Developments & Planning

$243 Million Solar Project Set to Turn Keenjhar Lake Into a Power Plant

KARACHI: The Pakistani government has announced plans to develop a 500-megawatt floating solar power project at Keenjhar Lake in Sindh, marking a significant milestone in the country’s transition to clean, renewable energy. The project, estimated to cost $243.63 million, is projected to generate approximately 861.91 gigawatt-hours of electricity annually, operating at a capacity factor of 19.6%.

The electricity generated by the facility will be supplied to K-Electric under a long-term power purchase agreement. A letter of intent has already been secured from K-Electric, and the process to select Engineering, Procurement and Construction contractors through competitive bidding is currently underway. The Sindh Transmission and Dispatch Company has also signed a memorandum of understanding with GO Energy Private Limited to facilitate power transmission from the project site.

Situated 137 kilometres from Karachi on the surface of Keenjhar Lake, one of Sindh’s largest freshwater bodies, the project will utilise approximately 1,606 acres of the lake’s surface to accommodate nearly one million solar panels. The floating design offers dual advantages: it eliminates land acquisition challenges associated with conventional solar installations and leverages the natural cooling effect of water to improve panel efficiency and overall energy output.

The initiative aligns with Pakistan’s 2030 emissions reduction targets and is part of a broader national push to diversify energy sources and reduce dependence on costly imported fossil fuels. Construction is expected to commence in 2026, with commercial operations projected to begin by 2028. The project is also anticipated to generate significant employment during both the construction and operational phases.

However, the project has drawn concern from local fishing communities and environmentalists. As Keenjhar Lake falls within a designated Ramsar wetland site, experts have flagged potential risks to migratory bird habitats and local fisheries, underscoring the need for thorough environmental oversight throughout the project’s development.

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Power Crisis as Electricity Shortfall
CategoriesNews Dams Power/Energy

Pakistan Plunges into Power Crisis as Electricity Shortfall Reaches 6,500MW

LAHORE/ISLAMABAD: Pakistan is currently grappling with one of its most acute electricity crises in recent years, as the nationwide power shortfall has surged to 6,500 megawatts, plunging millions of households and businesses into prolonged darkness. 

According to official data, total electricity demand has climbed to approximately 22,000MW, while the national grid is generating only 15,400MW, a gap that has translated into 8 to 16 hours of outages in various parts of the country. The energy mix currently comprises thermal, nuclear, hydro, wind, solar, and bagasse sources, with thermal contributing the largest share at 9,250MW.

Two primary factors are driving the shortfall. First, hydropower generation has taken a significant hit due to reduced water releases from the country’s dams, with output falling by nearly 2,000MW during peak nighttime hours. Second, gas supply to thermal power plants has been sharply curtailed following a halt in liquefied natural gas (LNG) cargo shipments, which are not expected to resume until early May. Only limited volumes of indigenous gas are currently being diverted to the power sector.

The worst-affected regions include areas under the Multan Electric Power Company, where residents report near-routine outages of 12 to 16 hours. Major cities, including Lahore, Faisalabad, and Kasur, are experiencing recurring power cuts of 3 to 8 hours, contradicting official claims of a minimal urban shortfall.

The Power Division issued a public apology and urged citizens to adopt energy-saving practices, particularly during nighttime hours. Authorities expressed optimism that the situation would ease as the dam water levels rise and RLNG supplies resume.

Meanwhile, a petition has been filed in the Lahore High Court challenging unannounced load shedding, as businesses report mounting losses and households struggle with the onset of summer heat. With peak demand season still ahead, the crisis shows little sign of immediate resolution.

For more news on the economy, real estate, and development, visit Chakor Ventures.