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Business Recorder
22-07-2025
- Business
- Business Recorder
Customs' value fixed on solar panels import
ISLAMABAD: The Directorate General of Customs Valuation, Karachi, has fixed customs value $0.08/Watt to $0.09/Watt on the import of solar panels of all origin. According to a valuation ruling (2012 of 2025) issued by the directorate on Monday, several representations were received by the Directorate of Customs Valuation, Karachi, emphasising the need for re-determination of customs values for the aforementioned goods, citing that their prices have changed and decreased in the international market. Accordingly, the directorate undertook an exercise to re-determine the customs values of the said goods in line with prevailing international market trends. Tax on imported solar panels: what does it mean for Pakistan's renewable energy future? Analysis to determine Customs Values: An initial meeting was convened on 19.02.2025 following the receipt of a representation from the Pakistan Solar Association (PSA) dated 21.01.2025, wherein, a revision of the existing valuation ruling No 189412024 dated 04-07-2024 was requested. The representation cited a significant decline in international prices of solar panels, noting that the values prescribed in the prevailing valuation ruling were comparatively on the higher side. It was also highlighted that several importers were facing difficulties with banks, as the declared transaction values were lower than the existing customs values, resulting in delays in clearance of goods due to banking compliance issues. During the initial meeting, the majority of stakeholders/importers expressed unanimous support for the continuation of the tier-based categorisation of solar panels as prescribed in the previous valuation ruling. Furthermore, they collectively emphasised that global market prices of solar panels had declined since the issuance of the last ruling in July, 2024. The stakeholders also requested that market verification be conducted from local distributors and ongoing solar exhibitions in Pakistan to corroborate prevailing prices. It is pertinent to mention that several key importers could not participate in the initial meeting due to their attendance at an ongoing international annual exhibition in China, which spans approximately two months. In the subsequent meeting, a majority of the attending stakeholders reiterated their stance on the downward trend of market prices, requesting a downward revision in customs values. In support of their position, relevant commercial invoices, Goods Declarations (GDs), and other documentary evidence reflecting the current transaction values of various Tier-based solar panels were submitted. Additionally, clearance data for the preceding 90 days was retrieved and thoroughly scrutinised to facilitate an informed and fair re-determination of customs values. Method(s) adopted to determine Customs values: Valuation methods specified in Section 25 of the Customs Act, 1969, were duly considered in sequential order to arrive at the customs values of subject goods. The transaction value method as provided in sub-section (l) of Section 25 of the Customs Act, 1969, was found inapplicable due to absence of information as required under sub-section (2) of Section 25 of Customs Act, 1969. The identical goods value method as provided in Section 2-5(5) was examined, some applicable values were found but that the same could not be solely relied upon due to absence of absolute demonstrable evidence of quantities and qualities. Copyright Business Recorder, 2025
Business Recorder
23-06-2025
- Business
- Business Recorder
PSA seeks exemption to green energy from SIC
LAHORE: Pakistan Solar Association (PSA) has asked the government of Sindh to exempt the green energy sector from the Sindh Infrastructure Cess (SIC), aligning with the Pakistan People's Party's (PPP) broader environmental vision. Leading industrialist and member of PSA Mian Faraz Aslam who is renewable energy advocate Mian Faraz Ala while speaking at the energy stakeholders' roundtable stressed that the renewable energy industry— especially solar— should be given strategic support through policy incentives, including tax and cess exemptions, to accelerate Pakistan's transition toward sustainable energy. He made a direct appeal to the Chief Minister of Sindh to support green energy sector. 'If we truly aim to implement the vision of PPP Chairman Bilawal Bhutto Zardari, who has repeatedly emphasised the importance of green and clean energy for Pakistan's future, we must remove bottlenecks like the Sindh Infrastructure Cess (SIC) on renewable energy equipment,' Alam stated. Mian Faraz, who leads the Alam Group of Companies and one of Pakistan's largest importers of Tier-1 solar panels pointed out that the SIC adds an additional financial burden on companies already investing in sustainable infrastructure. Copyright Business Recorder, 2025
Business Recorder
20-06-2025
- Business
- Business Recorder
Taxing solar panels to backfire as Pakistan needs time to bolster manufacturing: Experts
Energy experts believe that the imposition of General Sales Tax (GST) on the import of solar panels, regardless of the final tax rate decided by the federal government, will not slow down Pakistan's accelerating transition to renewable energy. 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.
Business Recorder
12-06-2025
- Business
- Business Recorder
PSA opposes 18pc GST on imported solar panels
LAHORE: The Pakistan Solar Association (PSA) has voiced strong opposition to the proposed imposition of 18% General Sales Tax (GST) on imported solar panels, as outlined in the Federal Budget 2025–2026. In a formal representation submitted to the Ministry of Power, the PSA cautioned that the move could significantly derail Pakistan's progress in renewable energy adoption at a critical juncture. According to the PSA, the imposition of this tax risks reversing the positive momentum built over the past several years, which has enabled widespread access to clean, affordable energy and contributed to national energy security. The association argues that the GST will increase the upfront cost of solar installations, making the technology less affordable for households and small businesses already grappling with high electricity prices. PSA Chairman Waqas Moosa emphasised, 'At a time when the world is accelerating toward clean and renewable energy, this tax may inadvertently discourage solar adoption and undermine our collective climate and energy goals.' The association challenged the rationale that the tax would protect local manufacturing, stating that Pakistan currently lacks a large-scale or high-efficiency solar panel manufacturing base. Local units mostly produce low-wattage panels that do not compete with imported technologies, making the protectionist impact of the tax marginal at best. In its letter, the PSA proposed alternative solutions such as phased incentives for local solar assembly, R\&D support, and GST exemptions for residential and small-scale solar buyers to strike a balance between industrial policy and clean energy access. The Association urged the government to reconsider the proposed GST, warning that higher costs could make solar less competitive than fossil fuels — which are not only environmentally harmful but also strain Pakistan's foreign exchange reserves. The PSA reaffirmed its commitment to collaborate with policymakers on sustainable, forward-thinking strategies to achieve energy independence and ensure long-term energy security for Pakistan. Copyright Business Recorder, 2025
Business Recorder
29-05-2025
- Business
- Business Recorder
Jinko Solar launches Tiger Neo X20 Panel
LAHORE: Jinko Solar, one of the leading solar brands has launched its latest innovation — the Tiger Neo X20 panel — at a ceremony held at a local hotel. In his opening remarks, Faraz Muhammad Khan, Business Development & Sales Manager, emphasized Jinko Solar's global leadership with a presence in over 200 countries and over 350 GW of modules shipped worldwide. 'Jinko has held the #1 global ranking for six consecutive years, and in Pakistan, it remains the most trusted solar brand,' he noted. Shehan Talagala (Sales Director) and Faizan Hashmi (Key Account Head North) introduced the Tiger Neo X20, powered by HOT 3.0 N-type TOPCon technology. The guest speaker Waqas Mossa, Chairman of the Pakistan Solar Association, praised Jinko's continued support for Pakistan's energy goals. 'This launch shows Jinko's dedication to bringing world-class solar solutions and driving the country toward a sustainable, energy-secure future,' he said. Copyright Business Recorder, 2025
