Reforms a must to convert Pakistan’s rapid solar uptake into industrial opportunity: Report
Pakistan has spent over $10 billion on solar imports without capturing industrial or economic spillovers.
ISLAMABAD ( WEB NEWS )
Speakers at a report launch said that Pakistan’s solar boom can be a foundation for green industrialization, energy security & sustainable economic growth, however, this boom is import-dominated with China accounting for the bulk of solar equipment imports.
The policy report, titled: “From Solar Boom to Green Industrialization: Policy Pathways to Localizing Solar Value Chains in Pakistan”, was launched by Sustainable Development Policy Institute (SDPI) in collaboration with the University of Bath, here on Monday.
Prof. Dr Yixian Sun from University of Bath, UK said Pakistan has spent over $10 billion on solar imports without capturing industrial or economic spillovers. He warned that decentralized solar growth is also exerting pressure on the national grid, raising costs for consumers unable to afford solar systems. Highlighting global trends, he noted that Chinese companies have invested over $200 billion in solar manufacturing abroad in the last three years, particularly in Southeast Asia, while Pakistan has attracted almost none. “With its large market and low labour costs, Pakistan can become a competitive destination for clean energy manufacturing if the policy and political environment is aligned,” he said.
Dr Khalid Waleed, Research Fellow and Energy Economy Expert at SDPI, said the report aligns closely with Pakistan’s broader economic transformation agenda, including energy, exports, environment and digitalization. “Pakistan has imported $2–3 billion worth of solar panels, representing 22–30 gigawatts of capacity, alongside $9 billion in Chinese financing for utility-scale coal plants, he said, adding that localization does not require reinventing the wheel but smart value addition. He underlined the importance of planning for solar panel recycling in the coming years through joint ventures with China.
Dr Hina Aslam, Visiting Fellow at SDPI, described the report as timely, saying it sheds light on the economic dimensions of Pakistan’s solar boom, an area often overlooked in energy debates. She stressed that clean energy supply chains are increasingly being diversified globally and said Pakistan can leverage this transition to train its youth, build local industries and reduce dependence on imported energy technologies through inclusive and forward-looking policies.
Presenting key policy recommendations, Faisal Sharif, Doctoral Candidate at University of Bath, outlined a “5S Roadmap” for solar PV manufacturing indigenization. The framework includes developing a national strategy, establishing a solar industrialization taskforce, adopting a 10-year policy, creating domestic demand through tailored solutions, and targeting export-oriented niches in the long run. He emphasized tariff rationalization, sales tax harmonization, blended finance, local content requirements, strong standards and certification regimes, and housing solar manufacturing clusters in CPEC-II SEZs.
Engineer Ubaid Ur Rehman Zia, Head of Energy Unit, SDPI, said Pakistan has witnessed an unprecedented surge in solar installations, driven largely by residential and commercial net-metering systems. He noted that Pakistan has already imported solar equipment equivalent to nearly 50 gigawatts, far exceedingly officially installed grid capacity. Though solarization has eased energy costs for many consumers, it has not translated into meaningful local industrial development or human resource capacity,” he said.
Aftab Khan, NPO, Ministry of Industries and Production, raised questions about Pakistan’s current technology readiness and stressed the need to clearly define priority areas for localization based on demand, efficiency and industrial feasibility.
Dr Hassan Daud Butt, Senior Advisor to China Energy Engineering Group, said weak long-term planning has constrained Pakistan’s energy sector. He warned that unchecked solar imports are weakening system stability and called for a clear roadmap for Green SEZs under a reform-oriented CPEC framework.
Dr Omais Abdur Rehman from Renewables First said performance-based incentives, as used in China, India and Japan, are essential to make locally manufactured solar panels competitive. Highlighted ease-of-doing-business challenges, he said, the challenges must be addressed to attract foreign investment.
Afaq Ali Khan, Vice Chairman, Pakistan Solar Association, warned that unplanned solar additions are impacting capacity payments and stressed the need for grid digitalization and workforce training in collaboration with Chinese institutions.
Speaking on market dynamics, Sheeraz Khan from Renewables First said Pakistan has already imported over 50 gigawatts of solar panels, mobilizing nearly USD 17 billion in private capital.