Karachi, April 23, 2025 – The Institute of Cost and Management Accountants of Pakistan (ICMAP) has issued an urgent call to action for the fast-tracked adoption of solar energy within Pakistan’s industrial sector.
In its recently published Policy Note, titled “Should Pakistan Expand the Use of Solar Energy in Industries to Reduce Electricity Costs?”, ICMAP outlines a compelling strategy aimed at combating the country’s deepening power crisis and improving export competitiveness.
According to ICMAP’s Research and Publications Department, industrial electricity tariffs have skyrocketed—rising over 100% in just four years, with a 38% increase recorded in FY2023 alone. Industries are now paying upwards of Rs. 54 per unit for electricity, while solar energy offers a drastically cheaper alternative at Rs. 18–20 per unit. This disparity is severely impacting key sectors such as textiles, steel, cement, and fertilizers, all of which are vital to Pakistan’s exports.
To address these challenges, ICMAP has proposed a robust policy roadmap featuring 30 actionable recommendations. These include the elimination of import duties on solar equipment, the launch of concessional green financing through banks and DFIs, and a simplified refinancing framework under the State Bank’s existing facilities. ICMAP has also stressed the urgency of upgrading grid infrastructure and implementing standardized net metering policies across all DISCOs to ensure seamless integration of solar energy.
In a forward-looking approach, ICMAP advocates for the development of a national hybrid energy policy, which would enable industries to blend solar power with grid electricity and third-party sources. Additionally, the creation of solar-ready clusters within Special Economic Zones (SEZs), tax incentives for solar investments, and domestic manufacturing support are key priorities.
To support implementation, ICMAP recommends launching a centralized solar promotion cell under AEDB, facilitating energy audits, and encouraging the use of performance-based energy service companies (ESCOs). Collaboration with universities and technical institutions is also proposed to develop a skilled solar workforce.
ICMAP’s policy push includes the introduction of solar insurance, green bonds, and an Industrial Solarization Fund to boost investor confidence. By revising industrial tariffs, incentivizing energy storage, and optimizing rooftop space, ICMAP believes Pakistan can shift toward a sustainable, cost-effective, and export-driven industrial future.