By Faiza Tehseen ISLAMABAD, Feb. 18 (INP-WealthPK): Pakistan is currently generating only 4% electricity from renewable energy sources and aims to take this percentage to 60% by 2030, but the imposition of tax on import of equipment used in solar panels has put a question mark on the achievability of this target.           Pakistan’s geographical position and climatic conditions are ideal to generate solar energy. Installation of 14% efficient solar panels at an area of 100km² only covers 0.01 percent of total land area of Pakistan. Panels erected at the said area can produce equivalent energy produced by using 30 million tons of oil, which consumes a lot of foreign exchange. Solar energy is an environment-friendly generation source and totally non-pollutant. Pakistan is generating 64% electricity through fossil fuels, 27% from hydel power, 5% from nuclear power and only 4% from renewable sources. Solar electricity generation is not given preference at a large scale. Mostly it is generated in the private sector or by households independently. Now Pakistan envisions to generate 60% of its electricity through renewable sources by 2030. The installation of at least 24,000 megawatts capacity panels will enable Pakistan to generate more than 2,900 gigawatts solar power capacity (1 gigawatt can power 110 million LED lights). Investment of $10 billion in solar power is enough to generate 50 to 60 gigawatts electricity capacity. It is 10 times more than the power generation of Tarbela and Mangla dams — two large hydel power projects of Pakistan. During more than 300 sunshine days in a year, every part of Pakistan receives 8-10 h day high solar radiation which makes the situation favourable concerning solar power generation farms. It is described in the following table depicting the minimum and maximum range of solar radiations in different areas of Pakistan: Source: https://energsustainsoc.biomedcentral.com/articles/10.1186/s13705-016-0082-z Faheem Ashraf, Executive Member of Pakistan Solar Association (PSA), in an interview with WealthPK stated that during the year 2021, it was estimated that about 2.3 gigawatts solar energy were generated in Pakistan (including almost all private and commercial users). In far-off areas where power transmission lines are not available, solar energy is a sustainable source of electric power generation. According to Faheem Ashraf, an official of the National Electric Power Regulatory Authority (NEPRA), at least 9 million workplaces or households are deprived of electricity due to lack of transmission lines. People living at such places are now trying to use solar panels for energy generation by leaving the typical fuel generators. Solar panels are considered cost-effective as well. But, the recent addition of taxes on the import of solar panels is making the situation difficult. Now additional sales tax has increased the price by 25-27% for the end-user, WealthPK reported. This situation is troublesome for both importers, traders and end-users at well. Faheem said that in other countries, solar energy is consumed as a cheap and sustainable mod for power generation. He said it is the need of time for the Pakistani government to adopt practical measures for solar energy promotion. The representatives of Islamabad Chamber of Commerce & Industry (ICCI), Pakistan Solar Association (PSA) and Renewable Energy Association (RES) held a meeting to review the situation after imposition of taxes. Before the mini-budget, there was no duty or additional tax on import of solar panels equipment. But now, after the mini-budget, the tax subsidy is discarded for solar inverters and other technical equipment related to solar energy generation. More than 20% sales tax will affect the development of this sector badly. The consumer is now forced to pay 21-25% additional tax. Shakeel Munir, Chairman of ICCI, in his address said the withdrawal of subsidies on solar energy equipment will create difficulties for economic growth. “The government should review the situation and provide relief for the development of renewable energy sector,” he said. Shakeel said solar energy sector was earlier exempted from all taxes due to which local and foreign investors were keen to invest in this sector. He said solar energy is the best way to provide electricity in far-off and underdeveloped rural areas. He said the imposition of tax will make it difficult for domestic consumers and small and medium enterprises (SMEs) to keep their business on track. During the year 2021, more than 1,600 megawatts solar equipment was imported, and 130-160MW was net metering equipment mostly used by farmers to water their agricultural lands. It is important for the government to withdraw taxes for the better promotion of its “Green Economy Vision”. At least one million tube wells are installed in Pakistan, and most of these are shifted to solar energy. The government must fix areas for solar farms and make electricity selling rates to the national grid more attractive. It will attract investors to this sector.