Pakistan's solar imports reach to 32,000 megawatts generation capacity

ISLAMABAD: Pakistan’s solar imports have reached to 32,000 megawatts capacity till now, an official document disclosed.

“The country has so far imported 2.25 billion solar panels,” as per the paper came to the knowledge of the media.

Pakistan has connected 6271MW electricity on net metering, an electricity billing mechanism that allows consumers who generate their own electricity through solar panels.

Moreover, 6506 megawatts of electricity have been installed without the net metering mechanism, as per the official paper.

According to the document, the country has 5521MW off-grid solar and the solar inventory to generate around 13,000 megawatts of electricity.

Concerned sources said that the local industry being damaged owing to absence of tax over the solar imports.

“Tax-free imported solar panels being dumped in the country,” sources added.

“The government intends to promote local solar industry with 18 percent sales tax on the imports, proposed in the budget to help the local industry,” sources said.

It is to be mentioned here that 18 percent GST has already been imposed over the local manufacturing of solar panels.

The National Assembly’s standing committee for finance on Tuesday rejected the budget proposal regarding 18% sales tax on imported solar panels.

Chairman FBR informed the NA body’s session chaired by Naveed Qamar that the sales tax is not imposed over photovoltaic cells. “There is no sales tax over the import of complete solar panels. Tax being imposed over parts being imported to complete them here,” FBR chief said.

“Tax should not be slapped over solar panels if you talk about the renewable energy,” Mirza Iftikhar said. “Imported solar panels are cheaper than the locally manufactured, which are also sub-standard in quality,” he said.

The standing committee’s members rejected the FBR’s proposal with majority vote.

MQM’s Javed Hanif in his note of dissent said that imported solar panels are being dumped in Pakistan and supported budget proposal of imposing 18% general sales tax on solar panels.