ISLAMABAD: A Chinese clean energy technology company AIKO has signed an agreement with the Punjab government to set up a solar panel manufacturing and assembly plant in the province to boost Pakistan’s renewable energy sector.
The agreement, facilitated by the Special Investment Facilitation Council (SIFC), will see AIKO set up a solar panel manufacturing and assembly plant in Punjab.
The agreement was formalized in a ceremony attended by Punjab’s Minister of Industries and Commerce, Chaudhry Shafay Hussain, and AIKO’s South Pacific Region President, Alex Heng. The new plant will not only serve the local market but is also expected to contribute to Pakistan’s export sector.
In his remarks, Minister Hussain emphasized the strategic importance of the new facility. “AIKO’s solar panel factory will cater to the local market and also contribute to exports,” he stated.
The provincial government is also planning initiatives to leverage solar technology more broadly. This includes converting 7,000 tube wells to solar energy and distributing solar panels to low-income households to increase access to affordable energy.
AIKO, a leading player in the clean energy sector, will bring significant technological expertise to Punjab. The establishment of the plant is expected to reduce Pakistan’s reliance on imported solar panels, which has been a significant aspect of the country’s renewable energy landscape. Currently, Pakistan imports most of its solar panels from China.
The shift towards renewable energy is critical for Pakistan, where only 5.4 percent of the installed power generation capacity of 39,772 megawatts comes from renewable sources, including wind, solar, and biomass. The majority of the power mix is still dominated by fossil fuels at 63 percent, with hydropower contributing 25 percent, according to data from the National Electric Power Regulatory Authority (NEPRA).
Last year, the Alternate Energy Development Board finalized a 10-year policy aimed at boosting the manufacturing of solar panels and related equipment. With support from Chinese partners like AIKO, the government hopes to install approximately 9.7 gigawatts (GW) of renewable energy power generation systems across Pakistan by 2030.
Chaudhry Shafay Hussain also noted that the investment from AIKO represents just one part of a larger strategy to enhance the province’s solar energy infrastructure. “Many other foreign companies have shown interest in investing in Punjab’s solar energy sector,” he added.
