Pakistan solar tax slammed as imports left stranded

July 18, 2014
Facebook
Twitter
LinkedIn
Reddit
Email

A former Pakistani technology minister has attacked a new tax that has left containers full of imported solar equipment reportedly stranded at ports in the Asian country.

Pakistan's new Financial Act 2014 came into force 1 July, implementing a 30% tax policy for solar panel imports, which were previously exempt from the duties because of their importance in combatting Pakistan’s energy crisis.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The imposition of the tax has led to an estimated 70 containers of solar panels becoming stranded at the port of Karachi.

According to local reports, the tax for the imported containers has gone from zero, to as much as PKR5.5 million (US$55,000) in owed tax per container. The tax could add up to a 35% increase on panel prices.  

Atta-ur-Rahman, Pakistan’s former technology minister and a leading scientist told PV Tech: “This is a wrong policy decision by the government. They should have made it tax free and offered a 30% subsidy on import of solar panels.”

“The world over, solar and other alternative forms of energy have been promoted through incentives, not through additional taxes,” said Rahman.

Before the Financial Act came into force, for a tax exemption, solar importers had to write a letter to the national Alternative Energy Development Board (AEDB) for approval.

Local reports from Custom Today in March suggested that complaints had been made by customs officials over the alleged misuse of the tax exemption by importers. According to The News Pakistan’s Engineering Development Board (EDB) proposed an end to the tax exemption, but quoted a source from AEDB claiming the latter was not informed of any changes. 

The source said the AEDB was pressing for the tax to be overturned.

Previously, the government had pushed solar projects to meet urgent energy demands, with an estimated shortage of 6GW. The government scrapping import duties for solar panels, inviting energy and infrastructure investment from China, introducing a feed-in tariff and building up a 700MW-plus pipeline of PV projects, were supposed to be underline a pledge made by Nawaz Sharif, the pro-solar prime minister elected last year, to end the energy crisis by the end of his five-year term.

Read Next

Premium
November 7, 2025
The increasing technical complexity of the renewable energy space has increased the demands on capital raising for those in the sector.
November 7, 2025
JA Solar has signed a module supply agreement with EPC contractor Larsen & Toubro (L&T) for two utility-scale projects in Uzbekistan. 
November 7, 2025
Saatvik Green Energy, through its subsidiary Saatvik Solar Industries, secured solar PV module orders worth INR2.99 billion (US$33.7 million). 
November 7, 2025
The US Geological Survey (USGS) has released the 2025 List of Critical Minerals, which includes silicon and tellurium.
November 7, 2025
Members of the European Parliament are urging the European Commission to restrict Chinese solar inverter manufacturers’ access to the bloc’s energy infrastructure, due to cybersecurity concerns.
November 7, 2025
Renewables asset fund Alantra Solar has secured €355 million to support the development and construction of five solar PV projects in Italy.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 12, 2025
10am PST / 1pm EST
Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Lisbon, Portugal