The cost of importing solar panels from China to Pakistan is expected to increase, as Beijing considers abolishing its export rebate on the product.
Muhammad Faaz Diwan, Director of Diwan International Pvt Ltd, said that the rebate on solar panels, currently set at 9%, could be reduced to zero from October 1, according to a report by Business Recorder.
“If the rebate is removed, the price of solar panels in Pakistan could go up by as much as 10%,” he warned.
At present, a 585-watt solar panel costs between Rs. 17,500 and Rs. 19,100, depending on the brand and quality. If the rebate is withdrawn, prices may climb by about 9%.
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He noted that solar panel sales in Pakistan had already slowed due to recent floods, leaving importers struggling to clear consignments. On average, around 2,500 containers are imported every month, each worth roughly Rs. 100 million.
He added that many importers, lacking sufficient funds to pay Customs charges, were selling panels at a loss. “If they cannot clear their containers stuck at Customs, additional charges will apply, forcing them to sell off stock below cost,” he said.
Meanwhile, Inverex CEO Muhammad Zakir Ali also cautioned that if China scraps the rebate, the price of a 16-panel set in Pakistan could rise by around 9%. He added that the solar market has been relatively sluggish this year, and the Chinese government is expected to make a final decision on the rebate later this month.
