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
‘Beyond imagination,’ Pakistani PM says as November inflation slows to 4.9% year-on-year
- Sharif says inflation rate lower than the government’s forecast and the lowest in nearly six years
- Last year Pakistan struggled through inflation as high as 38%,historic depreciation in currency
ISLAMABAD: Prime Minister Shehbaz Sharif said it was “beyond imagination” that Pakistan’s annual consumer inflation had slowed to 4.9% in November, lower than the government’s forecast and the lowest in nearly six years.
The finance ministry had projected inflation would slow to 5.8%-6.8% in November and ease to 5.6%-6.5% in December, it said in its monthly economic report published last week. The South Asian country slashed interest rates by 250 basis points earlier in November to help revive a sluggish economy amid a big drop in the rate of inflation.
Consumer inflation cooled from 7.2% in October, a sharp drop from a multi-decade high of nearly 40% in May 2023. Consumer prices in November rose +0.5% from October, according to the Pakistan Bureau of Statistics.
“After 70 months, the inflation rate in Pakistan in November is at its lowest level. In 2018, it was 3.5% during the era of [Prime Minister] Mian Mohammad Nawaz Sharif, this month, it has reached 4.9%,” Sharif told his cabinet in televised comments.
“This is a great grace of God. It is beyond imagination. Because inflation is the only tool that increases poverty or brings relief. This is a record after 70 months, this decrease will reduce the burden on the poor.”
Pakistan's annual consumer price inflation rate slowed to 9.6% in August, the first single-digit reading in almost three years.
A last-minute IMF rescue package last summer had helped Pakistan avert a sovereign default but, to secure it, the country had to revise its budget, and raise interest rates, taxes, and electricity and gas prices.
As a result, during the period, Pakistan struggled through inflation as high as 38%, historic depreciation in its currency, and contraction of the economy.
A new 37-month $7 billion loan bailout was approved for Pakistan by the IMF in September.
Pakistani squash legend Jansher Khan inducted into PSA Hall of Fame
- World No.1 for 97 months through his career, Khan’s final professional title count of 99 is the greatest of any player since records began
- Khan won the World Championships eight times, a record in the men’s game, and added six British Open titles to a glittering trophy haul
ISLAMABAD: Malaysian retired squash player Nicol David and Pakistani great Jansher Khan have been honored this week as the newest members of the Professional Squash Association (PSA) Hall of Fame at a ceremony held in Hong Kong, the body said on X.
David and Khan became the third and fourth members of the PSA Hall of Fame, which was launched earlier this year to recognize the achievements of the game’s most influential characters, past and present. David and Khan have joined inaugural inductees Susan Devoy from New Zealand, and Jahangir Khan, another Pakistani legend, in the PSA Hall of Fame as the association continues to celebrate its greatest icons.
“Congratulations to Nicol David and Jansher Khan,” PSA said in a social media post showing a picture of the two receiving the honor on the eve of the Hong Kong Squash Open.
A key part of the Pakistani dominance of the sport throughout the 1980s and 1990s, Jansher Khan won the World Championships eight times – a record in the men’s game – and also added six British Open titles to a glittering trophy haul.
A World No.1 for 97 months throughout his career, Khan’s final professional title count of 99 is the greatest of any player since records began.
“I feel very happy … I’m very happy to come to Hong Kong, see my old friends. It’s an honor to get this award,” Khan said in a statement released by PSA.
David is widely regarded as one of the greatest players in the history of squash, with her career including an unprecedented eight World Championship titles and an unmatched 108-month reign as the World No.1. She also took home five British Open titles and won two Commonwealth Games gold medals.
Since retiring, David has founded the Nicol David Organization, one of the Squash for Development programs that the PSA Foundation supports. The 41-year-old was announced as a member of the Laureus World Sports Academy – a recognized group of 69 sporting legends – in 2021.
“After doing so much in my squash career, you sometimes don’t realize how much you’ve done until the moment when you are given this opportunity to be recognized in a hall of fame,” David said in a PSA statement. “That’s when you you go ‘This is it!’ And I I feel amazing, it’s such an honor and I would like to thank PSA for honoring me.”
PSA Chief Executive Alex Gough said: “Nicol and Jansher are two of the most iconic figures in the history of squash and have both left a lasting legacy in the sport.
“Nicol inspired so many squash players – in Malaysia and across the globe – and her record of nine unbroken years at the summit of the world rankings will surely never be bettered. She is a fantastic ambassador for the sport and it was fantastic to see her honored with the title of Deputy Chef de Mission at the Paris 2024 Olympic Games this summer.
“Like Nicol, Jansher’s name will forever be linked to squash and the records he has amassed across the men’s game are nothing short of incredible. We are pleased to have had the opportunity to celebrate both players.”
Pakistan moves to enhance trade with Uzbekistan amid investment push in Central Asia
- Pakistan wants to consolidate its role as a pivotal trade and transit hub for landlocked Central Asian states
- In recent weeks, there has been flurry of visits, investment talks, economic activity between Pakistan and CARs
ISLAMABAD: The Ambassador of Uzbekistan to Pakistan, Alisher Tukhtayev, and Pakistani Federal Minister for Commerce, Jam Kamal Khan, on Monday discussed avenues to enhance business opportunities and trade relations as Islamabad seeks to enhance investment ties with the Central Asian Republics (CARs).
Pakistan is pushing to consolidate its role as a pivotal trade and transit hub connecting the landlocked Central Asian states with the rest of the world, leveraging its strategic geographical position. In recent weeks, there has been a flurry of visits, investment talks and economic activity between officials from Pakistan and the Central Asian nations.
Pakistan and Uzbekistan signed a $1 billion deal to increase bilateral trade in February 2023 at the eighth meeting of the Inter-governmental Commission on Trade-Economic and Scientific-Technical Cooperation in Tashkent. The agreement was aimed at encouraging the exchange of goods and services. The outgoing Uzbek Ambassador to Islamabad, Oybek Usmanov, said in September this year the countries were aiming to announce a $1 billion trade and industrial cooperation roadmap in the near future.
“Both sides agreed to work closely to unlock the full potential of their relationship,” a statement from the Pakistani commerce ministry said after Khan’s meeting with Tukhtayev, who was appointed in October.
During the discussion, Khan expressed his admiration for Uzbekistan’s infrastructure and rapid development.
“The progress in Uzbekistan is remarkable, and I was particularly impressed by its railway system,” the minister said, underscoring the importance of learning from Uzbekistan’s advancements.
Khan also highlighted newly launched flights between Pakistan and Uzbekistan, noting that their high occupancy rates were a “sign of significant potential for collaboration.”
“He identified religious tourism and other sectors as areas ripe for growth and called for further efforts to facilitate travel. Stressing the need for a streamlined visa process, he advocated measures to ensure genuine visitors while maintaining rigorous scrutiny,” the commerce ministry said.
Khan proposed partnerships with local airlines to boost trade and travel connectivity and suggested organizing business-to-business (B2B) interactions during Prime Minister Shehbaz Sharif’s upcoming visit to Uzbekistan, the dates of which have not yet been confirmed.
“The idea of holding a business forum during the visit also featured prominently in their discussions,” the commerce ministry added.
“Ambassador Tukhtayev agreed on the untapped potential of bilateral trade, emphasizing sectors like agriculture, food, pharmaceuticals, and tourism. He reassured the minister of the Uzbek Embassy’s round-the-clock availability to facilitate coordination and promote business ties,” the statement added.
Pakistan and Uzbekistan established diplomatic relations in May 1992.
Uzbekistan is the largest consumer market and second biggest economy in Central Asia. It was the first Central Asian country with which Pakistan signed a bilateral Transit Trade Agreement (UPTTA) and bilateral Preferential Trade Agreement (PTA) on 17 items.
Bilateral trade with Pakistan (Jan-Dec 2021) amounted to $126.05 million, with $88.18 million exports to Pakistan and $ 37.87 million imports from Pakistan, according to the website of the Pakistani foreign office, which did not provide updated figures.
Traders welcome decision to keep Khunjerab Pass linking Pakistan, China open year-round
- High-altitude Khunjerab Pass is closed from Nov. 30 to Apr. 1 each year due to harsh weather
- This year, border crossing has been opened from Dec. 1 for all kinds of trade and transportation
KHAPLU, Gilgit-Baltistan: In a first, the high-altitude Khunjerab Pass, the only land-connected route between China and Pakistan and a major trade station between the two nations, will remain open year-round for all types of trade and transportation, officials confirmed on Monday, with businesses welcoming the move.
At over 4.600 meters above sea level, Khunjerab, which connects Gilgit-Baltistan with China’s Xinjiang region, is the highest paved international crossing in the world and an important gateway to South Asia and Europe.
The pass is located in the Karakoram and holds a significant strategic position on the northern border of Pakistan, specifically in Gilgit-Baltistan’s Hunza and Nagar Districts. China mainly imports textiles, agricultural products and daily commodities through the pass, and exports plants and herbs.
Due to high altitude and harsh weather conditions, the border was previously open only between April to November and remained closed from December to March. Last October, however, Caretaker Prime Minister Anwaar-ul-Haq Kakar said at the Belt and Road Forum in Beijing that the pass would be converted into an all-weather border.
“The Government of the People’s Republic of China has formally concurred to the year-round opening of the Khunjerab Pass,” a latest notification from Pakistan’s Ministry of Foreign Affairs said.
“Consequently, operation of the Khunjerab-Sost border crossing are hence forth expanded from 1st April – 30thNovember each year to year-round operation,” the statement said, instructing all relevant agencies and government departments to continue their operations at the port from Dec. 1.
Confirming the development, Faizullah Faraq, the spokesperson for the Gilgit-Baltistan regional government, said authorities were “utilizing all resources” to clear the roads of snow on the Pakistani side to ensure smooth functioning of trade and transport activities.
The Gilgit-Baltistan region in northern Pakistan, flanked by soaring mountain ranges and glaciers, is also a major tourist destination in the country.
“The year-round opening of the border will also help in the promotion of tourism,” Faraq added. “The economic engagement of people of both regions [China and Pakistan] is associated with this border. So the local economy will be uplifted.”
Speaking to Arab News, Muhammad Iqbal, the president of the GB Importers and Exporters Association, welcomed the decision.
“The historic decision to keep the border open for the whole season will help boost import and export trade, and commerce between Pakistan and China,” he said. “For traders, this decision will ensure uninterrupted access to the Chinese market. This route will also give access to Central Asian and other countries and people-to-people contact between Pakistan’s G-B and China’s Xinjiang province will be enhanced.”
Imran Ali, the president of the Gilgit-Baltistan Chamber of Commerce, said “new avenues of development” would be opened by keeping the border open throughout the year.
“More than 20,000 people, including traders and laborers, are associated with this border, and due to this decision, business activities will be increased and traders and locals will directly get benefits,” he added.
According to APP, Pakistan’s state-run news agency, Khunjerab Pass recorded over 50,000 inbound and outbound passengers between Apr. 1 and the end of October, while import and export cargo volume reached 40,900 tones, up 42.6 percent and 72.7 percent year-on-year respectively.
China is a major ally and investor in Pakistan. The two countries collaborate on the China-Pakistan Economic Corridor, a flagship project under China’s Belt and Road Initiative, with more than $65 billion pledged for road, rail, and other infrastructure developments in the South Asian nation.
Pakistan sectarian clashes toll reaches 133 since Nov. 21 — provincial government
- A tribal jirga, or council of elders, had been formed to ensure a truce that has remained elusive so far
- Government says bunkers set up by armed groups to be dismantled and heavy weaponry confiscated
PESHAWAR: The death toll from sectarian clashes in northwest Pakistan has risen to 133, the provincial government said Monday, as tribal elders failed to ensure a truce between the feuding Sunni and Shiite Muslim communities.
Pakistan is a Sunni-majority country, but Kurram in Khyber Pakhtunkhwa province, near the border with Afghanistan, has a large Shiite population and the communities have clashed for decades.
At least “133 precious lives have been lost, and 177 people injured” in sporadic clashes since November 21, said a statement issued after a provincial cabinet meeting.
A tribal jirga, or council of elders, had been formed to ensure a truce that had remained elusive so far, it said.
“Bunkers set up by armed groups in Kurram will be dismantled and heavy weaponry ... will be confiscated,” the statement added.
The latest fighting broke out last Thursday when two separate convoys of Shiite Muslims traveling under police escort were ambushed, killing more than 40.
Since then days of fighting with light and heavy weapons have brought the region to a standstill, with major roads closed and mobile phone services cut as the death toll surged.
Anfal Hussain, who owns a pharmacy in Parachinar area, said “2024 has been extremely tough for Kurram” with dozens killed in clashes.
“I’ve been running this pharmacy for 11 years, but during the recent clashes the highway has been practically closed since October. This has caused significant shortages of food supplies and medicines,” Hussain, 36, told AFP.
“Many major illnesses cannot be treated in Parachinar’s hospitals, but they remain helpless due to the road closures,” he added.
A senior security official in the provincial capital Peshawar, speaking on condition of anonymity, on Friday told AFP that officials with the help of tribal elders were “close to achieving a truce,” after two earlier deals had failed to stymie the fighting.
“There are only two villages now where the sporadic firing is still taking place,” he said.
Police have regularly struggled to control violence in Kurram, which was part of the semi-autonomous Federally Administered Tribal Areas until it was merged with Khyber Pakhtunkhwa in 2018.
The Human Rights Commission of Pakistan said 79 people had been killed in the region between July and October in sectarian clashes.
The feuding is generally rekindled by disputes over land in the rugged mountainous region, and fueled by underlying tensions between communities from different sects.
