Pakistan’s businesses are rushing to install low-cost Chinese solar panels in response to surging electricity prices, which have made the state-owned grid one of the most expensive in South Asia. Major industries, such as Forward Sports, have dramatically increased their solar capacity to reduce reliance on the costly national power supply.
This rapid switch to solar, driven by Pakistan’s harsh sunlight and financial incentives, has led to a record $1.4 billion worth of Chinese solar panel imports in the first half of 2024. However, this shift is exacerbating Pakistan’s power sector woes, with a debt exceeding $9 billion and falling grid consumption.
Provincial governments, like those in Punjab and Sindh, are now offering free or subsidized solar panels to alleviate the burden on low-income households. Meanwhile, the federal government is renegotiating energy sector debts, with hopes of stabilizing the grid and reducing reliance on fossil fuels.
