Senate committee deliberates local manufacturing of solar panels

ISLAMABAD: The Senate Standing Committee on Industries and Production was briefed about the solar policy today.

The meeting was led by Ministry of Industries and Production (MoIP) standing committee chairman Aon Abbas Buppi. The officials informed the committee that the work on solar policy had started as per the instructions of the Special Investment Finance Council (SIFC).

Also read: Solar prices plummet in Pakistan due to oversupply, rising tariffs

It was told that the progress summary had been shared with the stakeholders four times. “The issue of sales tax had arisen, which has also been resolved,” they said.

The ministry officials also dispelled the notion that independent power producers (IPP) were lobbying against the solar policy.

Local manufacturing policy of solar panels

The MoIP officials also submitted a policy brief for locally manufacturing solar panels. Some important recommendations of the policy are as follows:

• A permanent 10-year policy framework to enable long-term investment by domestic and global companies
  
• Exemption from all duties and taxes on import of plant, machinery and equipment
  
• Exemption from duties and taxes on import of inputs
  
• Equal treatment with sales tax
  
• Roadmap for increasing duties and taxes on finished products/solutions
  

Discussions on manufacturing policy yield no outcome

Senator Saifullah Niazi stressed that wishful thinking would not help in advancement rather solid steps must be taken to promote the industry.

Senate Committee Chairman Aon Abbas queried, “Who determines the prices of solar panels?”

“The price of solar panel depends on the market and imports,” the ministry officials said.

The chairman then asked, “Why has a quota been kept for overseas Pakistanis?” The officials informed the committee that the quota was added on the instructions of SIFC. Aon Abbas replied that SIFC is not a technicality that all of their recommendations need to be followed.

Also read: Punjab gets free solar panels; Karachi misses out on power price cut

Senator Saleem Mandviwala then asked about the policies in place before the new policy. The committee chairman also asked if any work was being done on local solar manufacturing in Pakistan in the near future.

The ministry officials said that this can only be answered by the Federal Board of Revenue (FBR).

The committee chairman then suggested to invite FBR officials for a briefing. To this Senator Mandviwala responded, “FBR will not be able to give a clear position in this regard.”