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ISLAMABAD: The government is likely to exclude solar equipment from all taxes in order to meet the goal of 10,000 MWp from solar plants and support local business.
Ministry of Industries and Production (MoI&P) has drafted “Solar Panel and Allied Equipment Manufacturing Policy 2023” to be presented to the Economic Coordination Committee (ECC) of the cabinet, Business Recorder reported on Friday.
According to the draft policy the current acute energy crisis, the global increase in fossil fuel prices, the ensuing explosion in the cost of energy imports, have put strain on the county’s balance of payments (BoP). As a result, as part of the Indicative Generation Capacity Expansion Plan (IGCEP), the government has focused on expanding the share of indigenous energy resources from the current 40% to 90.2% by 2031, which will be accomplished mostly through Renewable Energy (RE) sources. To address energy difficulties, the prime minister has authorized the production of 10,000 MW of solar energy. The last few years have already seen a rise in solar energy consumption across the country.
The expected demand is expected to create huge potential market of solar modules and allied equipment as investors (local as well as foreign) are showing interest in investing in installing solar PV Panels and ancillary equipment manufacturing facilities in Pakistan. To make local manufacturing feasible, policy intervention from the government is needed.
According to the report, the planned strategy aims to support regional business. The adoption of this strategy is anticipated to assist the government in addressing climate change challenges, lowering CO2 emissions, saving foreign currency, and supporting export growth through domestic and international investments. Additionally, the planned program will boost business activity in previously established industrial areas including aluminum, frame, tempered glass, cable, etc.