Solar Policy Discussion in Senate Standing Committee Meeting
ISLAMABAD – During a recent meeting of the Senate Standing Committee on Industry and Production, a question was raised about the government’s plans to purchase electricity from solar users at Rs9 per unit. The Ministry of Industry and Production informed the committee that work on the solar policy is underway, guided by the Strategic Investment Facilitation Council (SIFC), with the sales tax issue now resolved.
The meeting, chaired by Committee Chairman Aoun Abbas Papi, saw officials from the Ministry of Industry and Production providing updates on the solar panel industry. They revealed that the solar policy had been developed under SIFC’s direction, with summaries shared with stakeholders multiple times.
When the Chairman inquired about potential lobbying by Independent Power Producers (IPPs) against the solar policy, officials assured that no such lobbying was occurring. He also asked about the determination of solar panel prices, to which they explained that prices depend on market dynamics and imports.
The Chairman raised concerns about a quota for overseas Pakistanis, with officials clarifying that the quota was set under SIFC’s guidance. He questioned the technical capability of SIFC and its ability to implement these recommendations effectively.
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On the topic of local solar manufacturing, officials noted that the Federal Board of Revenue (FBR) would be more suited to provide a stance on this matter. The Chairman suggested inviting FBR officials for a detailed briefing, though Senator Mandviwala expressed doubts about FBR’s ability to provide clarity.
The CEO of the Engineering Development Board outlined that the solar policy was developed after extensive consultations with working groups and recommended a 10-year policy framework for solar energy. The policy also proposed duty exemptions on solar machinery imports to boost local production and the establishment of an international certification lab for solar. The Ministry is also preparing a summary to include solar panels in tax exemptions in the next finance bill.
Senator Saleem Mandviwala questioned the fate of the previous solar policy, to which the CEO explained that while efforts were made on solar imports, there was no policy addressing local solar production. Regarding local companies manufacturing solar cells, the CEO clarified that while local companies could produce solar panels, manufacturing solar cells was not feasible.
Mandviwala also inquired about the addition of 4,500 MW of electricity to the national grid through solar, and the Chairman asked about plans to purchase electricity from solar users at Rs9 per unit. The CEO deferred this question to officials from the Power Division for further clarification.
