The government has decided to drastically reduce the import duty on solar energy equipment by 75 percent. The import duty on solar energy equipment is currently 25 per cent. This move is set to stimulate interest among the business community and other enterprises, who would want to reap benefits of the scheme considering the huge potential of alternate energy in Pakistan. The decision is likely to be given a final nod in the Economic Co-ordination Committee’s (ECC) next meeting.

The decision is in line with the government’s resolve to harness the potential for Clean Development Mechanism (CDM). Energy produced by these efficient and cleaner methods can offer lucrative returns to investors in the industrial sector and also earn carbon credits.

The use of solar energy has been practiced for a long time in other countries that are blessed with abundant sunlight throughout the year. Even in Pakistan, smaller villages, such as Narian Khorian, are prime examples of the success of solar energy projects. Pakistan can immensely benefit from the potential of solar power due to its long summer season.