Pakistan to offer tax relief for solar energy: Federal Minister

The Federal Minister for Industries and Production Makhdoom Syed Murtaza Mahmood has stated that the government is granting specific financial benefits and permitting the duty-free import of inputs, equipment, and machinery in order to boost the use of solar energy.

Speaking at a workshop hosted by the Engineering Development Board and titled “Solar panel and related equipment manufacturing policies,” he was delivering the following speech.

The minister highlighted that Pakistan possessed stockpiles of fundamental raw material for generating solar wafers and could commence local assembly in the first phase. This could be accomplished by rationalizing charges and taxes on solar panel imports, as the minister stated.

After that, he saw that a five-year plan was required in order to further rationalize the tax and tariff system in order to provide local producers with a fair playing field.

The minister was of the opinion that taking a step-by-step approach would be most effective in luring both international and domestic investors to establish solar panel assembly facilities, as well as solar cell manufacturing and conversion operations for the production of ingots.

According to what he indicated, the same tactic needs to be utilized for the manufacturing of ancillary items like solar inverters and batteries/storage systems.

The minister made the observation that “the formation of a solar strategy is the need of the hour in the wake of the energy crisis,” and he requested the EDB to produce a sustained policy within three months’ time.

According to what he mentioned, obstacles will be removed for the regional businesses, and the private sector needs to be competitive in the global market.

In order to alleviate the current energy crisis, the Prime Minister has already granted his approval to a proposal to create 10,000 megawatts of electricity from the sun’s supply.

The demand for solar power in Pakistan (including off-grid and on-grid) is expected to reach around 6-7 gigawatts during the next two years, having been estimated at approximately 4 gigawatts in 2022.

“With this demand, there is an urgent need to look for opportunities for promoting and incentivising the local manufacturing of solar panels and allied equipment,” he emphasised. “There is an urgent need to look for opportunities for promoting and incentivising the local manufacturing of solar panels.”

The minister emphasised the need of encouraging international investment in the development of the solar sector through the establishment of technology tie-ups and joint ventures with other nations that have a strong technological foundation.

The world’s largest Chinese corporations are looking for possibilities to set up production facilities in South Asia, from which they can ship their goods to other parts of the world.

The minister stated that “this might be a tremendous chance for them if Pakistan affords them timely assistance and an atmosphere that is conducive to their success.”

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