Pakistan emerged as second-largest market for Chinese photovoltaic products

Pakistan emerged as second-largest market for Chinese photovoltaic products as its journey towards green energy continues.

Pakistan has become a key market for Chinese photovoltaic (PV) companies, aligning with the country’s energy transformation goals.

According to data from the China Photovoltaic Industry Association (CPIA), Asia surpassed Europe as the leading export destination for PV products in early 2024, with Pakistan becoming the second-largest market for PV modules, following Europe.

During this period, China exported RMB 1.714 billion worth of inverters to Pakistan, with a significant spike in August, reaching 326 million yuan—a 429.04% year-on-year increase. Solar panels now prominently feature on various buildings across Pakistan.

This sharp rise in PV exports underscores Pakistan’s growing shift towards renewable energy, driven by increasing electricity prices, as noted by Abbas, a Pakistani trader at a China trade forum. As of June 2023, solar power constituted just 1.4% of the nation’s energy capacity, highlighting significant growth potential.

Natural conditions in Pakistan, particularly in Balochistan, are ideal for solar energy. According to the World Bank’s Global Solar Atlas, the region’s photovoltaic output and Global Tilted Irradiance (GTI) surpass those of India and China, indicating a stronger potential for solar power.

On the policy front, Pakistan has strongly supported renewable energy development, setting a target to increase the share of renewables to 20% by 2025 and 30% by 2030.

NEPRA’s IGCEP2047 outlines a dramatic increase in Pakistan’s PV capacity in the coming years, projecting 12.8GW by 2030 and 26.9GW by 2047. To meet these targets, the country will need to install an average of 1.65GW of new PV capacity annually by 2030.

Furthermore, Pakistani businesses are rapidly adopting solar power by installing Chinese panels on factory rooftops. For example, Khawaja Masood Akhtar, CEO of Forward Sports, has already increased solar energy use to 50% and aims to raise it to 80% by importing more Chinese solar panels.