ISLAMABAD: Pakistan’s solar imports have surged to support a total power generation capacity of 32,000 megawatts, according to an official document released to the media.
The country has imported approximately 2.25 billion solar panels to meet its growing energy needs.
So far, 6,271 megawatts of electricity has been connected through net metering, enabling consumers to contribute excess solar energy back to the national grid.
Additionally, 6,506 megawatts of electricity capacity has been installed without the net metering mechanism.
The document further reveals that 5,521 megawatts of solar energy is currently off-grid, while inventory on hand can support an additional 13,000 megawatts of generation capacity.
Local Industry Struggles as Imported Panels Dominate
Officials expressed concern over the impact of tax-free imported solar panels, claiming that they are being dumped in the local market and damaging domestic manufacturers.
Sources indicated that the government is considering a proposal to impose an 18% sales tax on imported solar panels in the national budget to support the local solar industry.
Currently, local manufacturers already pay 18% GST, putting them at a disadvantage against cheaper imports.
The aim of this tax policy is to protect local businesses and incentivize domestic production in the renewable energy sector.
National Assembly Panel Rejects Tax Proposal
On Tuesday, the National Assembly’s Standing Committee on Finance rejected the proposed 18% GST on imported solar panels.
During the session chaired by Naveed Qamar, FBR Chairman clarified that while photovoltaic cells remain tax-free, the tax would apply to imported parts used to assemble solar panels locally.
Committee member Mirza Iftikhar argued against taxing solar imports, highlighting that imported panels are not only cheaper but also more reliable compared to local alternatives.
Despite this, MQM’s Javed Hanif supported the tax, citing the dumping of solar panels in Pakistan as harmful to the local market.
The committee ultimately rejected the FBR’s proposal with a majority vote, signaling continued debate over balancing affordability with industrial growth in the energy sector.
