ISLAMABAD – A question was raised in the Senate Standing Committee meeting regarding whether the government will purchase electricity from solar users at a rate of Rs9 per unit. The Ministry of Industry and Production stated that work on the solar policy has begun following the SIFC’s guidance, and the sales tax issue has been resolved.
According to reports, the meeting of the Senate Standing Committee on Industry and Production was chaired by Committee Chairman Aoun Abbas Papi. Officials from the Ministry of Industry and Production briefed the committee on solar panels.
Officials mentioned that work on the solar policy had started under the direction of SIFC, and the summary had been shared with stakeholders four times. The sales tax issue had arisen but has now been resolved.
The Committee Chairman asked if IPPs were lobbying against the solar policy. The officials replied that no such lobbying was taking place. The Chairman then inquired about who determines the prices of solar panels, to which the officials responded that prices depend on the market and imports.
The Chairman also asked why a quota for overseas Pakistanis had been established. The officials explained that the quota was set under the guidance of SIFC. The Chairman remarked that SIFC is not technical and questioned the implementation of their recommendations.
The Chairman further asked if any local solar manufacturing efforts were underway in Pakistan. The Ministry of Industry and Production officials said that the FBR officials would be in a better position to answer this question. The Chairman suggested inviting FBR officials for a briefing, to which Senator Mandviwala responded that FBR would not be able to provide a clear stance on the matter.
The CEO of the Engineering Development Board, while briefing on the solar policy, stated that SIFC had directed the creation of the solar policy during its fifth meeting. After extensive consultations with working groups, the solar policy was developed, proposing several recommendations. The policy framework for solar over ten years was suggested, along with proposals for duty exemptions on machinery imports for solar plants to boost local production. A proposal for establishing an international certification lab for solar was also made, and the Ministry is sending a summary regarding this. The FBR will include solar panels in tax exemptions in the next finance bill.
Senator Saleem Mandviwala asked what happened to the previous solar policy. The CEO of the Engineering Development Board explained that the Energy Development Board had been working on solar imports, but there was no policy for local solar production. Mandviwala asked whether local companies would also manufacture solar cells, to which the CEO replied that companies would manufacture solar panels, but making solar cells was not feasible.
Mandviwala also inquired whether 4,500 MW of electricity would be added to the system from solar, and the Chairman asked whether there were plans to purchase electricity from solar users at Rs9 per unit. The CEO of the Engineering Development Board responded that Power Division officials would be better positioned to answer this question.
