According to the World Economic Forum, Pakistan imported 13 gigawatts of solar panels during the first six months of the current fiscal year, making it the third-largest importer of Chinese solar panels. The volume of imported panels now exceeds 30% of the country's total power production capacity, which stood at 46 gigawatts in 2023.
The growing demand for alternative energy sources due to high electricity costs is a key driver behind this shift. Additionally, a 90% drop in solar panel prices over the past decade has made solar energy more accessible. Government policies, including removing the 17% sales tax and introducing net metering, have further accelerated solar adoption.
Experts attribute Pakistan's costly electricity to irresponsible agreements with Independent Power Producers (IPPs). The Institute for Energy Economics and Financial Analysis reports that Pakistan paid PKR 6 trillion (approximately $21.5 billion) in capacity payments from 2019-20 to 2023-24, exacerbating the energy affordability crisis.
Solarization continues to gain momentum as an effective solution to Pakistan's energy woes, providing both economic and environmental benefits.
