Pakistan’s solar manufacturing needs more incentives than tax exemption

Facebook
Twitter
LinkedIn
Reddit
Email

Pakistan’s attempt to support manufacturing of solar and wind energy components through a five-year tax exemption is not enough and more incentives are needed to encourage such investments in the south Asian nation, according to the director of a local firm that is planning to set up its own domestic solar module assembly production facility.

In his budget speech back in January, finance minister Asad Umar announced that Pakistan’s long experience of high energy costs, which had hit competitiveness and progress in its industrial sector, meant that renewable energy sources – now often cheaper than fossil fuel technologies – must be promoted. The five-year income tax exemption would be for newly-established industrial units involved in the solar and wind equipment manufacturing.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Asad Iqbal, director of Pakistan-based conglomerate ACT Group, which plans to set up 1GW of solar PV module assembly capacity in Pakistan by the summer of 2021, told PV Tech: “The government is trying to get out of the vicious cycle of periodic balance of payments crises by encouraging manufacturing in Pakistan so the trade deficit can be reduced to manageable levels. This is one of their plans to encourage manufacturing of renewable energy equipment in Pakistan.”

However, he noted that the move was not enough – adding: “This alone, of course, is not the answer and the government needs to provide some more incentives to encourage people to invest in Pakistan.”

Only yesterday, prime minister Imran Khan, addressing the World Government Summit in Dubai, told the international community that now is the time to invest in Pakistan – adding “Don't miss the boat”.

7 October 2025
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 7-8 October 2025 is our third PV CellTech conference dedicated to the U.S. manufacturing sector. The events in 2023 and 2024 were a sell out success and 2025 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

June 26, 2025
A group of minority shareholders in Norwegian silicon firm REC Silicon has triggered an investigation into the circumstances surrounding the closure of the company’s US polysilicon production site.
June 24, 2025
Chinese solar manufacturing giant LONGi has signed an agreement with Indonesia’s Pertamina New & Renewable Energy to build a 1.4GW module assembly plant in West Java, Indonesia.
June 24, 2025
The Chinese polysilicon industry could face a shortage by 2028, despite persistent overcapacity in recent years, according to polysilicon market analyst Bernreuter Research.
June 18, 2025
The US Senate Finance Committee draft bill is a “stake in the heart” of US solar manufacturing, according to Democrat senator, Ron Wyden.
June 17, 2025
New solar manufacturing facilities show higher rates of product defects, PV Tech has heard from Joerg Althaus of Clean Energy Associates.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico