ISLAMABAD: Pakistan’s solar energy imports have reached a cumulative capacity of 32,000 megawatts, according to an official document shared with the media. The country has so far imported approximately 2.25 billion solar panels.
Of the total capacity, 6,271 megawatts have been integrated into the national grid through net metering, a billing system that enables consumers to offset their electricity use with energy produced from solar panels. An additional 6,506 megawatts of solar capacity has been installed without net metering, the document notes.
Furthermore, the country currently has 5,521 megawatts of off-grid solar installations, while maintaining a solar inventory capable of generating an estimated 13,000 megawatts.
Industry insiders have expressed concern over the impact of duty-free solar imports on domestic manufacturers. “Imported panels are being dumped in the local market, hurting local production,” sources said.
To address this imbalance, the government has proposed an 18% general sales tax (GST) on imported solar panels in the new budget, aiming to promote local manufacturing. Notably, locally manufactured solar panels are already subject to the same 18% GST.
However, the National Assembly’s Standing Committee on Finance rejected the proposal on Tuesday. During the session, chaired by Naveed Qamar, Federal Board of Revenue (FBR) Chairman clarified that the tax applies only to imported parts used to assemble panels locally, not to fully assembled imported solar panels.
Committee member Mirza Iftikhar opposed the tax, arguing that renewable energy should remain exempt and warning that locally made panels are not only more expensive but also inferior in quality.
Despite opposition, MQM’s Javed Hanif submitted a note of dissent, supporting the proposed tax and warning that Pakistan is becoming a dumping ground for cheap imported solar products.
