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July 1, 2025
Pakistan Cuts Solar Panel Tax to Boost Renewable Energy Sector
July 1, 2025Gharibwal Cement Limited has made a notable advancement in its sustainability journey by commissioning an additional 12.5 megawatt (MW) solar power system at its manufacturing facility. The development was officially shared with the Pakistan Stock Exchange (PSX) in a notice issued on Monday.
“We are pleased to inform the PSX and our stakeholders that Gharibwal Cement Limited has successfully completed the installation and commissioning of an additional 12.5MW solar power system at its plant site,” the company stated.
This new installation complements the company’s existing 12MW solar infrastructure, bringing the total installed solar capacity to 24.5MW. The newly added system began commercial operations on June 16, 2025, and is now actively meeting a portion of the company’s internal energy demands.
The company emphasized that this initiative supports its long-term sustainability goals and energy cost optimization strategy. By increasing its reliance on renewable sources, Gharibwal aims to reduce fossil fuel consumption and promote environmental responsibility.
Pakistan’s solar energy sector has been gaining momentum despite economic challenges. According to the Global Electricity Review 2025 by UK-based energy think tank Ember, Pakistan imported 17 gigawatts (GW) worth of solar panels in 2024—positioning itself among the top global solar markets.
However, this growth has raised questions about the impact on the national grid, particularly as overall electricity consumption remains relatively flat. In response, the federal government announced plans in its 2025–26 budget to introduce an 18% sales tax on imported solar panels—a move aimed at supporting domestic solar manufacturing.
Finance Minister Muhammad Aurangzeb, during his budget address to the National Assembly, stated that the proposed tax would encourage the growth of the local solar industry.
This development comes as net-metering capacity in Pakistan has surged to 2,813MW as of March 31, 2025, according to the Pakistan Economic Survey 2024–25, highlighting the rapid expansion of distributed solar generation in the country.