Taxing solar panels to backfire as Pakistan needs time to bolster manufacturing: Experts
Moreover, contrary to the government's assumption that the imposition of GST would promote domestic industry, experts argue that the move would backfire as the local industry remains underdeveloped and is presently unable to meet the market demand.
The remarks were made by clean energy experts, industrialists, climate activists, and renewable energy traders during a webinar titled 'Taxing the Sun: Will Solar Still Shine in Pakistan?', jointly organised by Energy Update and Pakistan Solar Association (PSA).
During the webinar, participants examined the federal government's recent budgetary proposal to impose GST on solar panels.
The government in its federal budget proposed to impose an 18% GST on solar panels imported. This sparked considerable debate; however, after consultations, the government decided to lower the rate to 10%.
Waqas Moosa, PSA Chairman, highlighted that the decade from 2020 to 2030 has been globally recognised as a pivotal era for transitioning to clean energy.
He indicated that Pakistani consumers would persist in embracing solar energy to power their homes and businesses, regardless of the added cost from GST.
Moosa, however, cautioned that Pakistan's local industry is not yet sufficiently developed to meet the growing demand for advanced solar panels in adequate quantity.
'As such, relying solely on local production at this stage could risk stalling progress.'
Moosa strongly criticised the proposal to tax imported solar panels, calling it a serious setback to Pakistan's efforts in combating the climate crisis.
'Whether or not a tax is implemented', he said, 'Domestic consumers will continue shifting to solar energy due to persistent power shortages and unaffordable electricity tariffs from the national grid.'
Muhammad Zakar Ali, CEO of Inverex Solar Energy, also echoed similar sentiments.
He said that the vast majority of electricity users in Pakistan will continue to transition away from grid-supplied electricity, regardless of tax implications.
Ali argued that Pakistan needs a minimum of 18-24 months to establish a viable local industry capable of producing clean energy equipment at scale.
Imposing a tax prematurely could deter both domestic and international investors, he warned.
He further noted that high electricity tariffs for industrial users could discourage investment in solar panel manufacturing plants.
Ali, however, remained optimistic that prospective Chinese investors would soon launch joint ventures with Pakistani industrialists to set up such facilities.
The Inverex CEO explained that establishing local solar panel manufacturing plants could lead to the development of five supporting vendor industries, significantly boosting the clean energy supply chain in Pakistan.
Pakistan's solar surge lifts it into rarefied 25% club
Dr Khalid Waleed, Research Associate at the Sustainable Development Policy Institute (SDPI), believed that the surge in rooftop solar installations in urban centres presents an opportunity for Pakistan to earn carbon credits on the global climate finance market.
During the webinar, Tanveer Barry, Former Vice President Karachi Chamber of Commerce and Industry (KCCI), pointed out that while Pakistan's installed electricity generation capacity exceeds 45,000 megawatts (MW), only around 27,000 MW are currently deliverable to end-users due to outdated and overburdened transmission infrastructure.
Barry also highlighted the immense untapped potential for solar energy adoption among off-grid rural households and agricultural communities across the country.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
Deadly floods
The death toll from the recent monsoon floods in upper parts of the country is staggering, with nearly 350 people reported dead, including over 200 in Buner district of K-P alone. Sadly, the death toll is anticipated to rise as a number of people are injured and missing. While most of the loss of life was due to drowning and landslides, roof and bridge collapses also exposed the government's failure to provide reliable infrastructure or housing. It is also unfortunate that despite warnings from government officials and the media, many tourists still went to flood-affected areas or refused to evacuate, leading to resources having to be redirected to rescue them. Over 1,300 tourists were airlifted from K-P's Mansehra alone. It is unfair to call such people victims in the traditional sense, as they chose to put their lives at risk despite warnings. Some countries make such 'victims' pay for the cost of their rescue. Pakistan should do the same if only to discourage similar risk-taking in the future. And while the recent deaths are almost all in K-P and parts of Azad Jammu and Kashmir, the National Disaster Management Authority's data shows that over 300 people had died due to monsoon rains across the country before the ongoing disaster began. That we cannot ignore the climate change connection goes without saying. A recent study by several Pakistani and foreign contributors published by Imperial College London noted that human-induced warming increased rainfall by up to 15%, which is the difference between a pleasant monsoon rain and a deadly cloudburst. Meanwhile, the UN launched a multimillion-dollar early warning system for Buner and Shangla less than a month ago. Once things normalise, it will be a fair question to ask whether such systems would have prevented the high loss of life. Failure to build quality infrastructure - or punish those responsible for shoddy infrastructure - must be investigated. Those behind the continuing unchecked construction of homes, including whole housing societies along riverbeds and in flood plains, must also be taken to task.
Business Recorder
9 hours ago
- Business Recorder
We need to identify, expose terrorists, their facilitators in Balochistan, says DG ISPR
Inter-Services Public Relations (ISPR) Director General Lt Gen Ahmed Sharif Chaudhry has suggested residents of Balochistan to expose terrorists and their facilitators, adding the security forces must work together with the people and administration of Balochistan in this regard. The military spokesperson said this during a special session with students participating in the ongoing internship programme organised by the ISPR. During the session, an in-depth discussion was held regarding Pakistan, particularly focusing on Balochistan. The ISPR director general answered in detail the questions asked by students belonging to Balochistan. To a query, demanding a major operation against terrorism in Balochistan, wherein door-to-door inspection is suggested, Lt Gen Chaudhry said the punishment for one person's terrorism cannot be given to an entire area or village. An operation in any area can only succeed when the public itself identifies terrorists, he said. 'It's not effective for the army to simply clear an area, conduct an operation, and then leave — as terrorists may return afterward. We must expose terrorists, their facilitators, and planners,' he said, adding that everything must be done wisely; 'that's why it's called intelligence-based operations (IBOs)'. The army has no interest in harming innocent civilians under the guise of counterterrorism, he maintained. However, the lieutenant general also warned, any citizen who shelters terrorists or stores explosives in their home will have to face the consequences. 'We are made to believe that something is brewing in the minds of the people and youth of Balochistan against Pakistan.' The people of Balochistan fully understand the relationship between the province and Pakistan, he said. DG ISPR Chaudhry said the local people are standing up and must do so against terrorism and they are now identifying terrorists and their facilitators. 'They are fed up and weary of these terrorists. Visit Balochistan and see how wise and forward-thinking the Baloch people are,' he noted. The DG ISPR reminded that every day, Pakistani officers, soldiers, and civilians are sacrificing their lives to keep the country free. Speaking of an army officer belonging to Balochistan, Major Muhammad Anwar Kakar (Shaheed), he said Kakar was a brilliant officer and a great son of the soil. 'He had earlier sent several terrorists to hell during the PC Hotel Gwadar attack,' he said. Chaudhry highlighted that countless success stories manifested that educated Baloch youth have become masters of their own fate. 'Samad Yar Jung, a renowned scientist from Balochistan, is a graduate of Cambridge University and an alumnus of Buleda School. Karate champion Shahzaib Rind, also from Balochistan, has carved his own destiny. Baloch girls are now serving as deputy commissioners in their districts.'
Business Recorder
9 hours ago
- Business Recorder
People should identify, expose terrorists, their facilitators in Balochistan, says DG ISPR
Inter-Services Public Relations (ISPR) Director General Lt Gen Ahmed Sharif Chaudhry has suggested residents of Balochistan to expose terrorists and their facilitators, adding the security forces must work together with the people and administration of Balochistan in this regard. The military spokesperson said this during a special session with students participating in the ongoing internship programme organised by the ISPR. During the session, an in-depth discussion was held regarding Pakistan, particularly focusing on Balochistan. The ISPR director general answered in detail the questions asked by students belonging to Balochistan. To a query, demanding a major operation against terrorism in Balochistan, wherein door-to-door inspection is suggested, Lt Gen Chaudhry said the punishment for one person's terrorism cannot be given to an entire area or village. An operation in any area can only succeed when the public itself identifies terrorists, he said. 'It's not effective for the army to simply clear an area, conduct an operation, and then leave — as terrorists may return afterward. We must expose terrorists, their facilitators, and planners,' he said, adding that everything must be done wisely; 'that's why it's called intelligence-based operations (IBOs)'. The army has no interest in harming innocent civilians under the guise of counterterrorism, he maintained. However, the lieutenant general also warned, any citizen who shelters terrorists or stores explosives in their home will have to face the consequences. 'We are made to believe that something is brewing in the minds of the people and youth of Balochistan against Pakistan.' The people of Balochistan fully understand the relationship between the province and Pakistan, he said. DG ISPR Chaudhry said the local people are standing up and must do so against terrorism and they are now identifying terrorists and their facilitators. 'They are fed up and weary of these terrorists. Visit Balochistan and see how wise and forward-thinking the Baloch people are,' he noted. The DG ISPR reminded that every day, Pakistani officers, soldiers, and civilians are sacrificing their lives to keep the country free. Speaking of an army officer belonging to Balochistan, Major Muhammad Anwar Kakar (Shaheed), he said Kakar was a brilliant officer and a great son of the soil. 'He had earlier sent several terrorists to hell during the PC Hotel Gwadar attack,' he said. Chaudhry highlighted that countless success stories manifested that educated Baloch youth have become masters of their own fate. 'Samad Yar Jung, a renowned scientist from Balochistan, is a graduate of Cambridge University and an alumnus of Buleda School. Karate champion Shahzaib Rind, also from Balochistan, has carved his own destiny. Baloch girls are now serving as deputy commissioners in their districts.'
