To Tax or Not to Tax: Pakistan’s Solar Energy Debate

Solar power is an ideal solution for Pakistan’s electricity crisis and is environmentally friendly. This paper highlights the economic development of solar panels, some related environmental factors in Pakistan, and the existing policies on solar panels in Pakistan. By highlighting the benefits of solar industry development in Pakistan and outlining the strategies to achieve the goal of Pakistan’s energy independence using renewable energy sources, this paper aims to enhance the understanding of this subject. The paper highlights the need for policymakers to develop implementable strategies that offer immense returns at the national and business levels. Such incentives would assist in enhancing the efficiency of the installed solar panels in Pakistan with the overall economy and climate change mitigation efforts. The study also reveals the comparative advantage of solar energy in terms of cost, reduction in the emissions of greenhouse gases and the development of green job opportunities, making solar energy inevitable for Pakistan for its energy planning. Therefore, this paper outlines best practices based on global benchmarks and case studies on solar energy policies and enunciates the need to embrace new technologies and funding methodologies for the uptake of solar panels in Pakistan. To successfully implement solar energy in Pakistan, the government needs to collaborate with the private sector and the community through effective planning and integration.