Pakistan boosts solar energy imports to become a top global market

Pakistan has rapidly increased its solar energy use, becoming one of the world's top solar markets. In the first half of 2024, the country imported 13 gigawatts of solar panels, making it the third-largest importer from China. Solar capacity now exceeds 30% of Pakistan's total power capacity. This shift is largely driven by households and businesses seeking affordable energy, aided by a 90% drop in solar panel prices over the past decade. The government has facilitated this growth by removing sales taxes on solar imports and allowing net metering, contrasting with past top-down energy policies that created excess capacity and financial burdens. To further enhance energy security and reduce reliance on fossil fuels, experts suggest adopting a similar bottom-up approach for the transport sector. Allowing duty-free imports of electric vehicles could help Pakistan meet its electrification goals and improve its competitiveness in global markets.