ISLAMABAD: Prime Minister, Shehbaz Sharif has reportedly approved utilization of confiscated solar panels lying at Karachi Port for public power projects in Gilgit Baltistan (GB) and Gwadar, sources told Newzshewz.
Secretary, Ministry of Planning, Development and Special Initiatives, Secretary Revenue Division/ Chairman FBR, Secretary Maritime Affairs and Secretary Power Division to take following actions immediately ;(i) prior to clearance from port, a quick survey shall be carried out to ascertain quantity, condition and usability of panels;(ii) panels equivalent to 100 MW capacity shall be earmarked for the solar power project in Gilgit ; (iii) the remaining panels shall be utilized for solarization of water supply schemes in Gwadar ; and (iv) transportation shall be arranged through NLC.
In another letter to Chairman FBR, Chief Secretary GB and Secretary Power Division have been directed by the PMO that no further auction of the remaining containers at Karachi Port containing solar panels may be undertaken. It has been further desired that representatives of the Power Division (PPIB and PPMC) and the Government of Gilgit-Baltistan may assess the condition, quality and technical suitability of the panels for development in the Gb solar energy projects.
Meanwhile, Ministry of Planning, Development and Special Initiatives has constituted a Steering Committee headed by Power Minister or supersizing development of 100 MW Distributed Solar Photovoltaic Plants at various sites in GB. The Committee will regularly review and monitor the progress of the project against approved timelines, milestones, and deliverables and identify and resolve key implementation bottlenecks.
It will provide strategic guidance by issuing policy directions to sponsoring and implementing agencies for effective coordination and ensuring timely completion of planned activities, outputs, procurements, and hiring in line with the approved PC-I and ensure technical, design, quality and cost optimisation of the project.
The SC will steer the overall implementation of the project and ensure adherence to Government of Pakistan’s policies, rules, and regulations, including compliance with financial, procurement, and environmental safeguards, while reviewing risks and proposing mitigation measures to avoid delays and cost overruns. It will facilitate coordination among federal Ministries, the Government of Gilgit Baltistan, development partners, and other stakeholders, resolve inter-agency issues, and escalate policy matters for higher-level approval where required.
The Committee will oversee monitoring and evaluation mechanisms to track outputs, outcomes, and impact of the project, submit regular progress reports, and keep the Prime Minister’s Office informed of project progress on a monthly basis and as required.
The Committee will recommend key changes, adjustments implementation strategy for approval of competent Keep the Prime Minister’s Office and Commission, donors) informed of project reviews, and ad-hoc updates on critical issues and actions. The Committee will also keep the Prime Minister Office updated on the project.
FBR has suffered revenue loss of Rs102 billion during 2023-24 on account of sales tax exemption on the import of Photovoltaic cells used in the solar panels for manufacturing sector/general masses.
According to the latest Tax Expenditure Report-2025 issued by the FBR, the sales tax exemption under the Sixth Schedule of the Sales Tax Act (2023-24) caused revenue loss of Rs102 billion during 2023-24 on account of sales tax exemption on the import of Photovoltaic cells whether or not assembled in modules or made up into panels manufacturing sector/general masses.
In last budget (2025-26), the government had imposed 18 percent sales tax on the import of solar panels. The proposal of imposing 18 per cent general sales tax (GST) on solar panels had sparked considerable debate. Upon review, it was revealed that 54 per cent of components used in solarisation were already taxed under the existing regime, and the 18 per cent tax applied only to the remaining 46 per cent. However, after mutual consultations, the government reduced GST from 18 per cent to 10 per cent.
Directorate General of Customs Valuation, Karachi, has reduced customs value upto $0.08/Watt to $0.09/Watt on the import of solar panels of all origin.
Recently, Chairman China Overseas Ports Holding Company, Yu Bo wrote a letter to Secretary MoMA, Zafar Ali Shah that since the commissioning of the feeders’ system by QESCO in August 2024, Gwadar Free Zone has continued to face critical and persistent power supply issues. These include frequent unannounced outages and severe voltage instability, which are causing considerable disruptions to both industrial and port operations.
According to Mr. Bo, the situation has been aggravated by recurring instances of extreme voltage instability, which have rendered the power supply unsuitable for operating sensitive industrial machinery. This has led to frequent malfunctions and increased maintenance costs and financial losses for enterprises operating in the Zone. Additionally, the absence of a formal notification system for both planned and unplanned outages severely limits the ability of businesses to implement timely contingency measures. Compounding these issues is the evident inadequacy of the existing feeder infrastructure, which lacks both the capacity and voltage regulation mechanisms required to meet the industrial load demands of the Free Zone. These persistent power disruptions not only hinder productivity but are also undermining invertor confidence and weakening the region’s appeal as a stable industrial logistics hub.
He requested Secretary MoMA to immediately intervene to address these critical power supply issues, specifically MoMA should coordinate with QESCO to ensure stabilization of voltage levels, upgrade the existing feeder infrastructure to industrial standards, implement real-time monitoring and outage notification systems and establish a formal protocol for advance communication regarding power interruptions. These measures are essential for safeguarding ongoing operations and unlocking the full economic potential of Gwadar Port and Free Zone.
Minister for Maritime Affairs, Junaid Anwar Chaudhry has confirmed the government will establish solar power plant at Gwadar to ensure electricity supply to the Port and Gwadar Free Zone. Ends
