Govt Once Again Fails to Approve Solar Panel Policy

The government has once again delayed approving a new policy for solar panel manufacturing due to ongoing uncertainty over whether to promote solar energy or protect imported fuel-based power generation.

This delay has adversely affected the investment plans of Sinotec Solar Corporation, a leading US manufacturer of solar panels, reported Express Tribune. The company plans to relocate its factory from Thailand and set up an automatic plant for high-end solar panel manufacturing for export purposes.

Last week, the Economic Coordination Committee (ECC) of the Cabinet deferred the approval of the solar panel manufacturing policy for 2024. It bears mentioning that this was the fourth postponement.

ECC’s delay contradicts authorities’ instructions to approve the policy to reduce reliance on imports. Local solar panel manufacturing could significantly reduce the country’s import bill, potentially saving up to $900 million annually once localization surpasses 50 percent of the total panel value.

The proposed policy by the Ministry of Industry includes exemptions from duties and taxes on input materials and machinery used in local manufacturing and increased import duties on finished solar panels to discourage dependency on imports.

The policy proposes a 10-year plan with annual targets for investment, production capacity, exports, and localization. It requires investors to provide bank guarantees equivalent to tariff and tax exemptions. The policy aims for companies to progressively increase production and export percentages over the years, with targets for localization of solar panel parts as well.

The Ministry of Energy has proposed a 10 percent customs duty on PV modules over the next decade and has not agreed to 20 percent localization in the first two years, advocating for duty-free imports of panels for two years. The incentives are contingent on meeting localization and export targets, with provisions for withdrawal and recovery of incentives if targets are not met by more than 20 percent.

Despite setting a target of adding 10,000 megawatts of solar power by 2031, the government’s approval of the new policy remains uncertain.

Follow ProPakistani on Google News & scroll through your favourite content faster!

Support independent journalism

If you want to join us in our mission to share independent, global journalism to the world, we’d love to have you on our side. If you can, please support us on a monthly basis. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.


  • This is just what is expected from a government which is without vision , wisdom n aim to promote the economy.

  • To tum logon ko kn c aag lagi hui hy (fails to approve)..hogai to tax lgnay hy jeena mushkil hojae ga or kch nhi..

  • The policy makers should consider future of Pakistan is in solar energy if they qre sincere with nation

  • Government should remove all taxes on solar panels and its components to facilitate the poor public. As per world Bank report all the power providing components are of politicians of Pakistan and getting two hundred time profit on the name of capacity charges and looting the poor publlic.

  • اس ملک کا باوا آدم ہی نرالا ہے ۔ جب بھی عوام کو تھوڑا سا بھی فائدہ ہو کنٹرولنگ مافیاز میدان میں چھلانگ لگا کر رکاوٹیں کھڑی کر دیتے ہیں ۔ ان کو آئی پی پیز کی فکر ہے کہ سولر پر لوگ جائینگے تو کیپسیٹی چارجز کن سے پوری کرینگے ۔ میری رائے ہے کہ تمام عوام ہولی سولی ڈایریکٹ سولر سسٹم اپنائے ۔ واپڈا سے نجات حاصل کریں ۔ بس تھوڑا سا بنیادی خرچہ بیٹریوں کا پڑیگا ۔

  • جب سے پیدا ھوئے ہیں گیس اور بجلی کی شدید کمی دیکھ رہے ہیں۔۔اب اگر ایسی ایجاد آہی گئی ہے تو اسکا فائدہ مافیاز عوام تک پہنچنے سے کیوں روک رہے ہیں۔۔۔ھمارے ملک میں صعنتی ترقی نہ ہونے کی سب سے بڑی وجہ انرجی کی کمی رہی ہے ورنی ٹیکنیکل اداروں اور ھنر مندوں کی کوئی کمی نہیں ۔۔اگر بڑے صعنتی گروپ اورعوام ھمت کرکے سولر پر زیادہ سے زیادہ انویسٹ کریں ۔۔تو اس ملک کو ترقی سے کوئی نہیں روک سکتا


  • Get Alerts

    Follow ProPakistani to get latest news and updates.


    ProPakistani Community

    Join the groups below to get latest news and updates.



    >