June 7, 2024

Solar Energy in Pakistan Backed by Government: No Taxes

Solar energy in Pakistan has received a significant boost with a recent statement from Ali Pervaiz Malik, Minister of State for Power. In a video message, Malik clarified that the government remains committed to renewable energy and dismissed rumors about potential taxes on solar panels as misinformation.

Government Firmly Supports Solar Energy Sector


In a video statement released today, Malik reaffirmed the Sharif government's unwavering commitment to solar energy in Pakistan. He emphasized that the government is dedicated to sustainability and renewable energy, and there are no plans to impose any duties or additional costs on solar panels. Malik categorically stated that such claims are baseless and have never been considered by the government.

Government commitment to solar energy

Image: Collected

As Malik emphasized, citizens have been encouraged to install solar panels as part of a broader vision to diversify energy sources, reduce reliance on fossil fuels, and mitigate energy shortages.

Solar energy plays a crucial role in Pakistan's energy mix. According to the International Renewable Energy Agency (IRENA), the country possesses an impressive adjusted potential of 50,500 MW of solar electricity. Minister Malik reassured the public that any policy changes would be carefully considered, involving all stakeholders to ensure a balanced approach that benefits both the public and the renewable energy sector.

This rhetoric of consultation and power-sharing initiates a process of deliberation and decision-making. It aims to democratize policy development by decentralizing power from government departments and involving diverse, knowledgeable stakeholders.

The Minister criticized certain news channels for disseminating false information about a potential levy on solar panels. Malik emphasized the importance of responsible journalism, especially for strategic sectors like solar energy, and urged journalists to exercise due diligence.

Government’s Vision for Renewable Energy


Echoing the government's vision, Minister Malik reiterated Prime Minister Shehbaz Sharif's commitment to increasing the share of renewable energy, particularly solar power, in Pakistan's energy mix. This dual approach aims to address both environmental concerns and economic growth, as well as enhance energy security. A recent World Bank report suggests that increasing renewable energy could save Pakistan up to $5 billion in energy costs by 2030.

"Unfortunately, a segment of the media prematurely reported that the government would impose a tax on solar panels without seeking confirmation from relevant authorities," Malik stated. "We want to reiterate our government's commitment to strengthening the renewable energy sector and ensuring a sustainable and resilient energy future for Pakistan," he emphasized.

Economic Benefits of Solar Energy in Pakistan


Solar energy in Pakistan has the potential to yield significant economic benefits. By reducing reliance on expensive fossil fuel imports, the country could save up to $5 billion in energy costs over the next two decades, as estimated by a World Bank report.

Additionally, the solar energy sector can create numerous jobs in manufacturing, installation, and maintenance, stimulating local economies. By attracting foreign investment, solar energy can further boost economic growth. Increased innovation and affordability of solar technology are making it more accessible to households and businesses, leading to reduced energy costs and increased energy independence.

Successful Solar Projects in Pakistan


The successful commercial solar energy projects in Pakistan, such as the 1,000 MW Quaid-e-Azam Solar Park in Bahawalpur, demonstrate the viability of solar power in the country.

The solar park contributes significantly to the national grid. Another successful project involved installing solar panels in off-grid villages in Balochistan, providing electricity to previously unpowered areas.


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