The Commerce Ministry has urged Chinese firm M/s Sinotec Solar (Pvt) Limited to collaborate with M/s Ghani Glass for local production of solar panel components.
This was discussed at a recent meeting chaired by Additional Secretary Incharge Ministry of Industries and Production Rashid Mahmood Langrial, reported Business Recorder.
At the meeting, he also discussed Sinotec’s import plans and advocated for resolving tariff and tax disparities affecting the local solar industry.
Langrial cautioned against high duties on imported solar panels and at the same time said the government can only waive duties and taxes on raw materials and machinery for Sinotec if they commit to a long-term localization plan for Pakistan.
A Sinotec representative presented a conditional localization plan for six solar panel components, contingent on reaching specific production capacities within certain timeframes. The additional Secretary Incharge of the Ministry of Industries wasn’t happy with the feasibility of Sinotec’s conditions regarding local market volume.
The Ministry of Commerce proposed that Sinotec collaborate with Ghani Glass to facilitate localization efforts for fostering technology transfer and genuine value addition through local manufacturing.
After thorough deliberation, the meeting decided that:
- EDB will outline government department responsibilities with task categories and timelines.
- The Ministry of Commerce will prepare a summary of tariff and tax projections for the next decade.
- Sinotec must provide an unconditional localization plan for five to seven years, backed by a bank guarantee and developed in consultation with Ghani Glass. EDB will evaluate this plan.
