Pakistan’s solar boom continues as govt proposes 18% tax

Cherat Cement Company Limited (CHCC) has further enhanced its renewable portfolio with the commissioning of a 2.935 MW solar power plant at its facility in Khyber Pakhtunkhwa.

The listed company engaged in the manufacturing of cement disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.

“We are pleased to inform that the company has commissioned remaining 2.935 MW solar power plant at its factory site Nowshera, Khyber Pakhtunkhwa on June 11, 2025, out of the total project of approximately 9 MW,” read the notice.

“After commissioning of this project, the total captive solar power generation capacity of the company will become around 23 MW,” it added.

Back in April, the cement manufacturer added 6.065MW to its renewable capacity.

Despite being a low-income country plagued by economic and social issues, a green revolution is taking place in Pakistan, and the South Asian country has quietly emerged as one of the world’s largest markets for the growing solar industry.

According to the Global Electricity Review 2025 by Ember, an energy think tank in the UK, Pakistan imported 17 gigawatts (GW) of solar panels in 2024, joining the ranks of leading solar nations.

This rising trend has left decision-makers grappling with its implications for the national grid and energy sector, as electricity consumption remains stagnant.

In response, the federal government, in its budget for the financial year 2025-26, on Tuesday revealed its intention to impose an 18% sales tax on imported solar panels.

The proposed tax would help the local industry grow, Finance Minister Muhammad Aurangzeb said in his budget speech in the National Assembly.

The development comes amid a solar boom in the country, with net-metering capacity in Pakistan jumping to 2,813 megawatts (MW) as of March 31, 2025, according to the Pakistan Economic Survey 2024-25 released on Monday.