As electricity prices continue to soar, Pakistan has rapidly established itself as a major player in the global solar market.

Over the past few years, the country has become one of the largest importers of solar panels, importing 13 gigawatts during the first half of the current fiscal year, according to the World Economic Forum.

This positions Pakistan as the third-largest importer of Chinese solar panels.

Solar panel imports now account for over 30% of Pakistan’s total power production capacity, which reached 46 gigawatts in 2023.

The increasing demand for alternative energy sources, driven by high electricity costs, has fueled this growth.

Additionally, the price of solar panels has plummeted by 90% over the past decade, making solar energy more accessible to consumers.

Government initiatives, such as the removal of a 17% sales tax on solar equipment and the introduction of net metering, have further accelerated the adoption of solar technology.

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Experts attribute the high cost of electricity in Pakistan to unfavorable agreements with Independent Power Producers (IPPs), which have led the country to spend approximately PKR 6 trillion (around $21.5 billion) on capacity payments from 2019 to 2024.

With solar energy emerging as a viable solution to the country’s energy challenges, it offers both economic and environmental benefits, positioning Pakistan for a more sustainable energy future.