PM Approves Use of Seized Solar Panels for Gilgit-Baltistan, Gwadar Power Projects
Pakistan’s Prime Minister has given the go-ahead to repurpose confiscated solar panels for power projects in Gilgit-Baltistan and Gwadar, aiming to address ongoing grid vulnerabilities while expanding access to renewable energy.
The decision comes as the Federal Board of Revenue (FBR) reported a significant Rs102 billion revenue loss in FY 2023-24 due to sales tax exemptions on solar panel imports. The exemptions, granted under the Sixth Schedule of the Sales Tax Act, were designed to promote renewable energy adoption.
In the latest budget for FY 2025-26, the government introduced an 18% general sales tax (GST) on solar panel imports, which sparked pushback from stakeholders. Following consultations, the rate was revised down to 10%, in recognition of the 54% partial taxation already applied to solar components.
To ease affordability further, the Directorate General of Customs Valuation in Karachi lowered the customs value of solar panels to between USD 0.08 and USD 0.09 per watt, depending on their origin.
Analysts believe the move to redeploy seized panels could be a game-changer for energy equity in Pakistan. By supplying clean and reliable power to underserved regions
Pakistan to Repurpose Confiscated Solar Panels for Remote Energy Needs
