Pakistan’s Punjab government signed an agreement with the Chinese solar energy company AIKO to establish the province’s first solar panel manufacturing plant, aimed at enhancing local production and assembly of solar panels within Punjab.
The signing ceremony took place at a local hotel, with Punjab’s Minister of Industries and Commerce, Chaudhry Shafay Hussain, and Alex Hang, President of the South Pacific Region of AIKO, leading the collaboration. The event also saw participation from CEO of Centurain Energy Faisal Javed, officials from the Chinese company, and a significant number of investors.
Speaking at the event, Chaudhry Shafay Hussain highlighted the significance of the agreement.
“The Chinese company, under the agreement, will install a solar panel manufacturing plant in Punjab,” the minister stated. He noted that India is already manufacturing solar panels and earning one billion dollars in exports, adding, “We will collaborate with foreign companies in the solar energy sector.”
The minister also mentioned that there is a plan in place to shift 7,000 tube wells in Punjab to solar energy. Furthermore, he announced that a “Garment City” is under construction on 650 acres in Quaid Azam Business Park, Sheikhupura, which will be powered by solar energy. He reiterated the government’s commitment to providing affordable electricity to homes and institutions across the province.
Chaudhry Shafay also revealed plans to establish a solar panel testing lab in Punjab. He emphasized that with dedicated efforts from all departments, the need to seek loans from financial institutions like the IMF could be eliminated.
Three Memorandums of Understanding (MoUs) were signed between AIKO and local investors.
Over the past five months, Chaudhry Shafay Hussain has reportedly engaged with more than 21 foreign solar energy companies, many of which have shown interest in investing in Punjab’s solar energy sector. The government is also planning to provide solar panels to low-income households, either free of charge or through installment plans.
Pakistan emerges as Asia’s largest market for Chinese solar modules
Pakistan’s market for solar power is booming with the surge in imports from China.
A recent Reuters report suggested that Pakistan became Asia’s largest single market of Chinese solar modules accounting for 10,450 MW in the first half of 2024.
Pakistan remains China’s dominant solar supplier despite ongoing trade disputes in key markets as China adopted classic cutthroat pricing to shift a record 120,427 megawatts (MW) of solar module capacity exports in the first half of 2024.
The first half tally was up 6.3% year-on-year or around 7,150 MW above the previous record half-year period set in the opening half of 2023, which means the country has exported nearly 720,000 MW of solar module capacity since the start of 2020, according to data from think tank Ember. Globally, Europe was the top destination for China’s solar modules, accounting for 43% of the total, or 52,158 MW.