Pakistan quickly became one of the major solar energy markets within just a few years.
According to the World Economic Forum, the country imported 13 gigawatts of solar panels in the first half of this fiscal year, ranking it as the third-highest importer of Chinese solar panels worldwide.
These imports have substantially enhanced Pakistan’s renewable energy sector, with imported panels now representing over 30% of the country’s total 46-gigawatt production in 2023.
Domestic and business demand for cost-effective electricity solutions has driven this growth.
Moreover, solar panel prices have plummeted by 90% over the past decade, catalyzing a shift to solar energy.
Government initiatives have facilitated this transition, including removing a 17% sales tax and adopting net metering policies.
Rising electricity costs, worsened by unfavourable agreements with Independent Power Producers (IPPs), have intensified the search for alternative energy sources.
#Pakistan is rapidly embracing solar energy! Did you know Pakistan ranks among the top 10 countries in the world for solar panel installations? As we move towards a cleaner, greener future, Pakistan is leading the way in South Asia #SpotifyWrapped #ChampionsTrophy2025 #Bitcoin pic.twitter.com/SIqkONKgJe
— سرکاری ملازم (@HimayatReborn) December 6, 2024The Institute for Energy Economics and Financial Analysis reports that Pakistan paid 6 trillion rupees ($21.5 billion) in capacity payments from 2019 to 2023.
The move towards solar power has eased economic burdens from coal imports and yielded environmental benefits.
Consequently, solarization has enhanced energy security, created jobs, drawn foreign investment, and supported environmental sustainability.
Read: Government Plans to Slash Solar Net Metering Rates, Threatening Growth
