ISLAMABAD: The price of solar panels has plummeted by over sixty percent in Pakistan in recent weeks due to bulk imports from China because of lower rates, importers said this week, with more consumers switching to the renewable source of power to reduce electricity bills.
The cost of producing solar panels in China, which accounts for about 80 percent of global consumption, plummeted by 42 percent in the last year, giving manufacturers there an enormous advantage over rivals in places like the United States and Europe. Multiple European solar manufacturers have announced plans to close factories in recent months, under price pressure from Chinese imports. China accounts for 80 percent of solar module production capacity after years of subsidies.
Pakistan has ideal climatic conditions for solar power generation, with over nine hours of sunlight in most parts of the country. Utilizing just 0.071 percent of the country’s area for solar photovoltaic (solar PV) power generation would meet Pakistan’s electricity demand, according to the World Bank.
But currently, only 5.4 percent of Pakistan’s installed power generation capacity of 39,772 megawatts comes from renewables like wind, solar and biomass, while fossil fuels still make up 63 percent of the fuel mix, followed by hydropower at 25 percent, according to the National Electric Power Regulatory Authority (NEPRA).
But this may change with an acute drop in the price of panels, importers said.
“A solar plate of 580 watts that I bought [last year] for 75,000 rupees [$270] has dropped to 25,000 rupees [$90] now,” Muhammad Yahya, a solar importer in Islamabad, told Arab News on Thursday. “That means it’s one-third of [earlier price].”
“The rates of the inverters are the same and keep fluctuating, but the main thing is solar panels and the rates of the solar panels are now 33 percent lower.”
Prices of solar panels dropped in China following import curtailment from major buyers including India, US and Europe while the Pakistani government had abolished a 17 percent sales tax to encourage solar imports, Yahya said, explaining the reduction in panel prices:
“People who would import through illegal channels, they [the government] blocked them, this helped stop the illegal import, and led to a bulk import, and secondly the rates [of solar panels] have dropped in China.”
Another solar panel importer in Islamabad, Abdul Moiz, agreed that the rate drop in China and curtailment of imports to India and other major buyers had led to bulk imports to Pakistan.
“America and India have stopped their imports [from China], that’s why the majority of the imports are now directed toward Pakistan,” Moiz told Arab News.
“CLIMATE CHANGE”
Despite the benefits, including to the environment of zero carbon emissions from solar panels, Pakistan is far behind in meeting its goal of shifting to 60 percent renewable energy by 2030 with 50 percent reduction in projected emissions.
Experts say procedural and bureaucratic delays in construction approvals and unattractive tariffs for selling power to the national grid coupled with a lack of political will and little government investment had blocked the progress of the solar industry in the past. For households, a big impediment, before the Chinese rate cuts, was the steep initial investment.
But that has changed, with electricity consumers describing the drop in solar panel prices as a ‘big relief’ in reducing their electricity bills.
“After its [solar panel] installation, our [electricity] cost has reduced to thirty percent,” Imran Ali Gul, a manager at a local hotel who has installed a 16kw system, told Arab News. “That’s why we preferred to get the solar system installed.”
Aamir Hussain, chairman Pakistan Alternative Energy Association, told Arab News Pakistanis purchased and installed solar panels of around 1800 megawatts last year, which was expected to jump to 3,000 megawatts this year due to the lower prices of the panels and increased customer demand.
“Pakistan will be spending over $3.5 billion [this year] on solar panels imports only as this doesn’t include import of batteries, inverters and other auxiliary items,” Hussain said. “Pakistan needs to follow consistent policies regarding renewable energy to meet its national and international obligations for the greenhouse gas emissions.”
Experts also said Pakistan, one of the most vulnerable nations to climate change impacts, needed to swiftly move to end its reliance on fossil fuels.
“There is no denying of the fact that climate change has wreaked havoc globally, so the studies suggest that in order to meet the global targets of reducing our temperature etc, in addition to transition of existing fossil fuel power plants, we should cap these fossils as well,” Manzoor Ahmed, a researcher at the Policy Research Institute for Equitable Development in Islamabad, told Arab News.
“So, given this roadmap, given our commitments in terms of net zero emissions or COP conferences where we agreed to meet global targets, we have no choice but to shift to renewables and we must do it.”
Demand for solar power rises in Pakistan as import glut crashes panel prices
https://arab.news/wju6g
Demand for solar power rises in Pakistan as import glut crashes panel prices
- Businessmen say solar panel prices have dropped by over sixty percent due to bulk import, rate cuts by China
- Islamabad currently only generates around five percent of its energy from renewable solutions like solar power
Pakistan’s deputy PM speaks with Iranian official as Tehran launches retaliatory strikes on Israel
- Ishaq Dar expresses Pakistan’s support to Iran ‘for achieving peace and stability in the region’
- Air raid sirens sounded across Israel Friday night as dozens of Iranian missiles struck the country
ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar spoke with his Iranian counterpart on Friday as Tehran launched a retaliatory missile strike on Israel following deadly Israeli attacks on nuclear facilities and senior military commanders.
Air raid sirens sounded across Israel on Friday night as dozens of Iranian missiles struck the country in a dramatic escalation of tensions. Explosions were heard throughout Jerusalem and plumes of smoke were seen rising in Tel Aviv after apparent strikes. While no casualties were immediately reported, the Israeli military ordered residents nationwide into bomb shelters.
The latest attacks came after Israel carried out a wave of airstrikes across Iran, reportedly killing at least three top Iranian military officers and targeting nuclear facilities and ballistic missile sites. Israeli military officials said 200 fighter jets were involved in the operation, which struck more than 100 locations in what analysts described as the most significant assault Iran has faced since its war with Iraq in the 1980s.
The Pakistani deputy PM held a phone call with Iranian Foreign Minister Seyed Abbas Araghchi, as the war escalated between the two Middle Eastern rivals.
“Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar @MIshaqDar50, today spoke with the Foreign Minister of Iran, Seyed Abbas Araghchi @Araghchi,” the Pakistani foreign office said in a statement.
“Condemning the blatant Israeli aggression against the Islamic Republic of Iran in total disregard of the UN Charter and international law, DPM/FM reiterated strong support of Pakistan to the Government and brotherly people of Iran for achieving peace and stability in the region,” it added.
Dar also conveyed “deepest sympathies on the loss of many precious lives during Israeli attacks,” according to the statement.
Earlier in the day, the Pakistani foreign office said Israel had violated Iran’s sovereignty and that the attacks were “contrary to the UN Charter and fundamental principles of international law.”
It warned the escalation posed “a serious threat to regional peace and security,” adding that Iran had the right to self-defense under Article 51 of the UN Charter.
Dar, writing on X, described the Israeli strikes as a “brazen violation” of Iranian sovereignty and said they “gravely undermine regional stability and international security.”
“Pakistan stands in solidarity with the government and the people of Iran,” he wrote.
He also said the foreign ministry had established a 24/7 Crisis Management Unit to ensure the safety and security of Pakistani nationals and pilgrims in Iran.
Prime Minister Shehbaz Sharif echoed the condemnation and called on the international community and the United Nations to “take urgent steps to prevent any further escalation that could imperil regional and global peace.”
Israeli military spokesperson Defrin said all air defense systems had been activated in response to Iran’s retaliation and the country expected “difficult hours ahead.”
In Washington, the US administration said it had not been involved in the Israeli operation.
“Israel took unilateral action against Iran,” US Secretary of State Marco Rubio said in a statement released by the White House. “Our top priority is protecting American forces in the region.”
Saudi Arabia’s foreign ministry also condemned the Israeli strikes.
“The Kingdom condemns these heinous attacks and affirms that the international community and the Security Council bear a great responsibility to immediately halt this aggression,” the Saudi statement said.
Airlines cleared out of the airspace over Israel, Iran, Iraq and Jordan on Friday following the strikes, according to Flightradar24 data, as carriers scrambled to divert or cancel flights to ensure passenger and crew safety.
Iran closed its airspace and Tel Aviv’s Ben Gurion Airport was shut down until further notice.
Israeli military Chief of Staff Eyal Zamir said tens of thousands of soldiers had been called up and deployed across all borders.
“We are amidst a historic campaign unlike any other. This is a critical operation to prevent an existential threat, by an enemy who is intent on destroying us,” he said.
With inputs from AP and Reuters
Pakistan warns of ‘first water war’ under nuclear shadow if India cuts off river flows
- Bilawal Bhutto-Zardari calls Indus Waters Treaty ‘gold standard in diplomacy’ at a think tank in Brussels
- He condemns Israel’s military strike on Iran, says the region cannot afford the war to continue for long
KARACHI: The head of Pakistan’s diplomatic mission touring world capitals to explain Islamabad’s position on a recent military standoff with New Delhi warned Friday India’s threat to cut off his country’s water supply could lead to the “first water war” between two nuclear-armed states at a think tank in Brussels.
The warning came after New Delhi announced in April it was suspending the 1960 Indus Waters Treaty, a World Bank-brokered agreement seen as a cornerstone of India-Pakistan water cooperation, following a deadly gun attack in Kashmir, which it blamed on Pakistan.
Islamabad denied any involvement and called for an impartial international probe. However, tensions quickly escalated, with both sides deploying fighter jets, missiles, drones and artillery fire before a US-brokered ceasefire was announced by President Donald Trump on May 10.
Bilawal Bhutto-Zardari, Pakistan’s former foreign minister and the current head of the country’s diplomatic outreach, told the European think tank India’s threat to disrupt river flows affecting 240 million people amounted to a “war crime.”
“It would turn this into an existential crisis, and we would be left with no choice but to embark on the first water war… between two nuclear-armed states,” he said.
Bhutto-Zardari described the Indus Waters Treaty as “the gold standard in diplomacy,” noting it had survived multiple wars and had been replicated in over 40 other international water-sharing agreements.
He said recent Indian actions, such as the delayed or excessive release of water, had already damaged Pakistan’s crops and posed a humanitarian risk.
“Just a few days’ delay in water release can have devastating consequences for our agriculture,” he said. “This is the only water supply into Pakistan. In the context of climate vulnerability, the last thing we need is a fault line developing where cooperation once existed.”
His other delegation members maintained undermining the treaty would set a dangerous global precedent, allowing upper riparian states anywhere in the world to disregard binding water-sharing agreements.
“If this treaty is in abeyance, then no treaty signed after World War II is worth the paper it’s written on,” Musadik Malik, the climate change minister, said. “That threatens the rights of lower riparian countries across Africa, South America and beyond.”
Earlier, in a brief exchange with reporters, Bhutto-Zardari welcomed renewed interest from Washington in mediating between India and Pakistan.
“As you have seen, President [Donald] Trump said once again yesterday that he is ready to mediate on Kashmir,” he noted. “At the moment, Pakistan is talking about peace, America is also talking about peace. If anyone is still talking about war, it is India, and, by the grace of God, they will step back from this position soon.”
Responding to a query, Bhutto-Zardari strongly condemned Israel’s military operations against Iran and its broader regional policies.
“We strongly oppose the attack on Iran and the way the war is being waged in this region,” he said. “No amount of condemnation is enough. We demand that this war be stopped and that the entire world plays its role. Peace is very important in our territory. We cannot afford Israel’s war on Iran to continue for long.”
Pakistan’s top revenue-generating Sindh province unveils $12.4 billion budget with major tax cuts
- Sindh, home to commercial hub Karachi, wants to abolish five taxes to ease pressure on individuals, businesses
- Khyber Pakhtunkhwa, governed by jailed ex-PM Khan’s PTI, presents $7.63 billion budget for FY2025-26
KARACHI: Pakistan’s southern Sindh province on Friday proposed abolishing five taxes as it presented a Rs3.45 trillion ($12.41 billion) new budget for fiscal year 2025-26 to simplify taxation and alleviate financial pressure on people and small businesses.
Friday also saw Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province announcing a surplus budget of Rs2,119 billion ($7.63 billion) for next year, without proposing any new taxes. The province allocated significant financial resources for the militancy-hit tribal districts and social welfare programs, according to the budget document.
SINDH
Sindh’s budget, which carries a deficit of Rs38.46 billion ($138.35 million), includes plans to eliminate professional tax, cotton fee and entertainment duty among other levies as part of broader reforms to support salaried individuals, small businesses, and cultural industries.
“I would like to share some important changes being planned to make our tax system simpler and to reduce the financial burden on both individuals and businesses,” Chief Minister Murad Ali Shah said while presenting the budget in the provincial assembly.
Sindh generates most of Pakistan’s revenues, more than 60 percent, and is the second most populous province ruled by Pakistan People’s Party of President Asif Ali Zardari, a coalition partner of Pakistan Muslim League-Nawaz party which leads the federal government.
Pakistan remains under a $7 billion International Monetary Fund (IMF) loan program approved last year and the Washington-based lender wants Islamabad to broaden its tax base by taxing incomes from agriculture, retail and real estate sectors at the provincial level.
The two provinces announced their new fiscal plans days after Pakistan’s federal government announced its FY26 budget targeting 4.2 percent economic growth, while aiming to arrest fiscal deficit at 3.9 percent of the GDP.
In Sindh, the province’s total revenue receipts are projected at Rs3.41 trillion ($12.27 billion) for FY2025-26, up 11.6 percent from the current fiscal year ending June. Transfers from the federal divisible pool, which account for 75 percent of revenue, are expected to rise 10.2 percent to Rs1.93 trillion ($6.94 billion). With additional grants and straight transfers, total federal receipts are estimated at Rs2.10 trillion ($7.55 billion).
Current Revenue Expenditure (CRE) has been set at Rs2.15 trillion ($7.73 billion), a 12.4 percent increase from the prior year, driven by higher salaries, pensions, and grants to non-financial institutions.
Allocations for key sectors have seen marked increases. The education budget has risen to Rs523.73 billion ($1.88 billion) – a 12.4 percent hike – with major investments in primary and secondary education. New initiatives include hiring 4,400 staff, opening four community colleges, and funding for 34,100 primary schools through cost centers.
The health sector will receive Rs326.5 billion ($1.17 billion), up 8 percent, including Rs19 billion ($68.35 million) for the Sindh Institute of Urology & Transplantation (SIUT) and Rs10 billion ($35.97 million) for a new hospital in Larkana.
Enhanced ambulance and mobile diagnostic services are also planned.
Grants-in-aid total Rs702 billion ($2.53 billion), reflecting allocations for hospitals, universities, and development bodies. A Rs520 billion ($1.87 billion) Annual Development Program (ADP) focuses on 475 new schemes targeting flood recovery, renewable energy, and underserved regions.
Karachi, the provincial capital of Sindh, will see major upgrades in transport and infrastructure. Fifty electric buses will launch this year, with 100 more expected by August. Bus Rapid Transit (BRT) Yellow Line is nearing completion, and the Red Line has passed the halfway mark.
The Karachi Safe City initiative will expand CCTV coverage using artificial intelligence, while blockchain-based land records, a KPI monitoring dashboard, and digital birth registration aim to enhance governance.
In rural areas, Rs20 billion ($71.95 million) has been allocated for pro-poor initiatives, while the new Benazir Hari Card will support 200,000 farmers. The Sindh Cooperative Bank is being explored to provide interest-free loans to progressive farmers.
KHYBER PAKHTUNKHWA
Presenting the new budget, Khyber Pakhtunkhwa’s Finance Minister Aftab Alam said the province achieved a Rs100 billion ($359.71 million) surplus in the outgoing fiscal year despite receiving Rs90 billion ($323.74 million) less in funds from the federal government.
The province is ruled by jailed former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, which is in opposition at the federal level.
“Against all odds and skepticism, we not only met our budget targets but also ensured timely debt repayments of Rs49 billion [$176.26 million],” Alam said.
He added that KP’s own non-tax revenues rose by 74 percent this year, while the KP Revenue Authority collected Rs41.37 billion ($148.79 million) in the first 10 months of the outgoing fiscal year.
The province has set a tax revenue target of Rs83.5 billion ($300 million) and a non-tax revenue target of Rs45.5 billion ($163.71 million) for the next fiscal year, aiming to widen the tax net rather than impose new levies.
Federal transfers, including Rs1,147.91 billion ($4.13 billion) from tax revenues and Rs58.15 billion ($209.17 million) in oil windfall levy, are expected to form the bulk of receipts.
The tribal districts are set to receive Rs292.34 billion ($1.05 billion), including Rs50 billion ($179.85 million) under an accelerated implementation program and Rs39 billion ($140.28 million) for development.
Key initiatives include the expansion of the Sehat Card Plus with life insurance coverage, recruitment of 16,000 teachers, and establishment of new degree colleges.
The province’s police force will receive Rs693.7 million ($2.49 million) for modern arms and Rs1.22 billion ($4.39 million) for vehicles.
IFC to provide $400 million loan for Pakistan’s copper-gold Reko Diq mine
- The loan adds to a $300 million commitment announced in April, bringing the total to $700 million
- Reko Diq, one of the largest undeveloped copper-gold deposits, is being developed by Barrick Gold
ISLAMABAD: The International Finance Corporation will provide a $400 million subordinated loan for Pakistan’s Reko Diq copper-gold mine, according to an IFC disclosure on Friday.
The loan adds to a $300 million commitment announced in April, bringing IFC’s total financing for the project to $700 million. The estimated cost of the mine is $6.6 billion, to be funded through a mix of debt and equity from a consortium of lenders.
“The estimated total Project cost is $6.6bn, and it will be financed using a combination of debt and equity,” the disclosure said, adding that other parallel lenders will provide the remaining debt financing.
This type of loan, known as subordinated debt, is typically repaid after other senior loans and helps absorb more risk, making it easier for other lenders to invest.
Other financiers, including the US EXIM Bank, Asian Development Bank, Export Development Canada, and Japan’s JBIC, are also expected to join the financing package, project director Tim Cribb told Reuters in April.
Term sheets are expected to close by early in the third quarter. IFC chief Makhtar Diop said earlier this year that the institution was “doubling down” on Pakistan, with a focus on infrastructure, energy and natural resources.
Reko Diq, located in Balochistan, is one of the world’s largest undeveloped copper-gold deposits. It is being developed by Barrick Gold, which holds 50 percent, with the remainder split between Pakistan’s federal and provincial governments.
Production is expected to begin in 2028. Barrick has projected the mine will generate up to $74 billion in free cash flow over its estimated 37-year life.
Pakistan stocks drop over 1,900 points amid Israel-Iran tensions
- Analysts cite fears of broader regional escalation following Israeli strikes on Iran
- Israel struck Iran, claiming Tehran was “close” to developing a nuclear weapon
KARACHI: The Pakistan Stock Exchange (PSX) plunged more than 1,900 points on Friday, as investor sentiment soured following Israel’s strikes on Iran, triggering fears of wider regional escalation.
The benchmark KSE-100 index fell 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12.
Shares traded largely in the red, mirroring losses across regional and global markets after the Israeli attacks shook investor confidence, according to a market review by Pakistani brokerage Topline Securities.
“Geopolitical tensions after Israel’s attack in Iran weighed down on world equities, including the KSE100,” Raza Jafri, Head of Intermarket Securities, told Arab News. “In particular, if a geopolitical risk premium gets added to international oil prices on a prolonged basis, it could negatively affect the outlook for the current account deficit and inflation, given more than 25 percent of Pakistan’s import bill comprises of petroleum products.”
He noted that Pakistan was now “much more disciplined” economically, having avoided fuel subsidies and refrained from using foreign exchange reserves to support the currency. This, he said, would help the country better withstand a potential oil price shock than in the past.
Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, said stocks declined across the board in response to the strikes.
“Slump in global equities on geopolitical risks and weakening rupee played catalyst role in panic selling at PSX,” he said.
Israel launched strikes on Iran earlier on Friday, claiming Tehran was “very close” to developing a nuclear weapon. The attacks reportedly targeted nuclear facilities, scientists, and senior military commanders.
