Solar panel prices in Pakistan have seen a considerable decline in the past six months, with expectations of further reductions due to recent tax relief introduced in the 2024–25 budget.
On Friday, Parliament passed a new financial bill that includes tax exemptions on the import of solar panels and associated equipment.
These incentives encompass complete solar panels, machinery, raw materials, and components essential for solar energy systems. This comprehensive initiative aims to bolster Pakistan’s domestic solar industry.
Previously, consumers faced an 18% sales tax on inverters, posing a substantial financial burden.
The newly introduced tax relief measures are anticipated to alleviate these costs, enhancing the affordability and attractiveness of solar energy for Pakistanis.
Chinese investors have proposed imposing import duties on fully assembled solar panels to encourage local manufacturing. This approach could stimulate local production, generate employment opportunities, and fortify Pakistan’s solar sector.
Experts posit that tax exemptions on solar panels and related equipment will drive down prices, while local production could potentially revolutionize green energy solutions.
However, attracting foreign investment to bolster the solar panel manufacturing industry will require sustained efforts and time.
