KARACHI: Pakistan Solar Association (PSL) Senior Vice-President Mohammad Zakir Ali, who was part of Prime Minister Shehbaz Sharif’s recent delegation to China, said, “I do not think the government will impose any new taxes and duties on solar panels, which already have zero per cent general sales tax. Only inverters carry 18pc GST.”

He said the government has been trying to lure Chinese manufacturers of different products to relocate their units in Pakistan after reports of some restrictions or curbs imposed on China by various countries.

Mr Zakir said that despite the government’s strong commitment to promoting solarisation in the country, “no memorandum of understanding (MoU) had been signed, though multiple agreements had been inked between Chinese and local entrepreneurs in different sectors.”

He added that this would also promote fresh investment in the solar industry.

He added that when Chinese companies export to Pakistan or other countries, they get a rebate, which is the same as what they want from Pakistan after investing in the solar sector.

He was of the view that after a recent hue and cry, the government may not take any negative measures on net-metering, like reducing the power purchase rate from the current Rs21 to Rs12 per unit.

He said Chinese investors, in interactions during the visit, had said that Pakistan needed to impose an import duty on the arrival of completely built-up (CBU) solar panels so that the local panel manufacturers could work in a healthy environment.