Chinese solar panel imports to Pakistan are soaring this year
Data DiveChinese solar panel imports into Pakistan in 2025 are set to exceed last yearâs record-breaking total, per new data from Islamabad-based think tank Renewables First.
These panels have been flooding Pakistani markets in recent years as the country copes with rolling blackouts from its fossil-fuel dominated power grid and a 155% jump in electricity bill prices since 2021.
Solar panel imports from China more than quadrupled to 16.6 gigawatts (GW) in 2024 from 2.5 GW in 2021, making Pakistan one of the worldâs top destinations for Chinese panels, according to the think tank.
And it’s showing up in the power supply: Solar has accounted for a quarter of Pakistan’s utility-supplied electricity so far this year, Reuters reported Tuesday based on data from nonprofit Ember.
The South Asian country has imported 10 GW of solar panels from China already this year â almost 60% of the total imported last year, the data shows.
âThis trend suggests that 2025 is on track to surpass last yearâs solar imports,â Rabia Babar, data manager for Renewables First, told Cipher.
Solar panels have become increasingly attractive and affordable for Pakistanis as prices have plunged, according to the International Energy Agency.
China produces far more solar panels than it needs and has been selling them at low cost around the globe, targeting Asian markets. It has invested $60 billion in energy and infrastructure projects in Pakistan, where it doesnât face the kind of anti-dumping tariffs levied by the United States and the European Union.
But the availability of cheap solar panels has a price. While consumers are benefiting from lower electricity bills, Pakistanâs fledgling solar manufacturing sector canât compete because they had to pay import duties on solar panel components until last year, which contributed to the domestic sectorâs demise. Last year, the government lifted the levy for manufacturers that met certain conditions, but developers say the relief came too late.
Last week, the countryâs ruling party proposed an 18% sales tax on imported panels in its upcoming budget to boost domestic manufacturing. But the levy may run into trouble because the partyâs coalition partner in the government opposes the measure. Â
The Pakistan Solar Association said the claim the measure will boost local manufacturing is flawed âbecause there is no large scale or high efficiency solar panel manufacturing facility in Pakistan today,â Waqas Moosa, head of the solar group and co-founder of Lahore-based Hadron Solar, said in a statement.Â
For example, Pakistan-based Tesla Industries (an engineering firm incorporated in 1992 and unrelated to Elon Muskâs company) made mainstream solar panels over a decade ago but, after running into competition from cheaper Chinese alternatives, pivoted to making panels just for small-scale applications.