Private sector accelerates solar adoption despite tax pressures and policy debates
Ecopack Limited, a major player in Pakistan’s plastic packaging industry, has announced the installation of a 2.03-megawatt solar power facility. This move highlights the growing shift of local industries towards clean energy solutions. The company’s board approved the capital investment to purchase 3.63 acres of land and develop the project, which aims to reduce power costs and carbon emissions.
Ecopack, known for manufacturing PET bottles and preforms, joins a rising number of companies tapping into solar energy. Just last week, Gharibwal Cement Limited completed a 12.5MW solar addition, showcasing a wider trend of solar expansion in Pakistan’s industrial sector. Businesses are finding renewable energy not only environmentally beneficial but also economically strategic.
Despite financial pressures and tax changes, solar energy adoption is on the rise. According to the Global Electricity Review 2025, Pakistan imported a massive 17 gigawatts of solar panels in 2024, placing it among the world’s top photovoltaic buyers. Net metering capacity also reached 2,813MW by March 2025, showing increasing participation from residential, commercial, and industrial users.
However, this rapid growth has brought challenges. The government now faces pressure to manage grid stability and avoid extra payments to idle power producers due to flat electricity demand. In response to rising imports, the government proposed an 18% GST on imported solar panels. The move was met with criticism from industry stakeholders over cost concerns.
After consultations, Finance Minister Muhammad Aurangzeb announced a revised plan. The GST has been reduced to 10% and will apply to just 46% of imported components, limiting the overall price impact to about 4.6%. Still, the solar sector is urging for long-term, clear policies that balance consumer needs, local manufacturing goals, and national grid demands.
Ecopack’s new project shows that corporate confidence in solar energy remains strong. As energy-intensive sectors struggle with inflation and unreliable power supply, switching to solar continues to be a smart and sustainable solution, regardless of shifting government policies.