Gharibwal Cement Leads Industry Shift with New 12.5MW Solar Plant
In a major milestone for Pakistan’s industrial sustainability efforts, Gharibwal Cement Limited has successfully commissioned a 12.5MW solar power system at its plant, significantly increasing its renewable energy footprint.
Announced via a formal disclosure to the Pakistan Stock Exchange (PSX) on Monday, the move raises the company’s total installed solar capacity to 24.5MW, following the integration of the new system with an existing 12MW solar array.
“This strategic investment aligns with the company’s sustainability objectives and long-term energy cost optimization strategy,” stated Gharibwal Cement, highlighting its shift toward renewables and fossil fuel independence.
The new system began commercial operations on June 16, 2025, and is now contributing directly to the company’s captive energy needs, enhancing energy security amid rising industrial costs and volatile fuel markets.
Cement Industry Joins Pakistan’s Renewable Push
Cement manufacturing is one of the most energy-intensive industrial processes globally. By adopting solar power, Gharibwal Cement not only reduces its carbon footprint but also shields itself from future energy price shocks—a growing concern for heavy industries in Pakistan.
This development marks a larger shift in the country’s industrial sector, which is now embracing sustainability as a competitive advantage. Other major players, particularly in textiles and fertilizers, are also pivoting to on-site solar generation and energy efficiency upgrades.
Solar Boom Meets Policy Headwinds
Gharibwal’s expansion comes at a pivotal moment. According to the Global Electricity Review 2025 by Ember, Pakistan imported a staggering 17 gigawatts (GW) of solar panels in 2024—placing it among the top solar-importing nations globally.
The country is undergoing a quiet solar revolution, driven by:
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Falling global panel prices
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Frequent grid outages
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Rising cost of grid electricity
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Increased net-metering awareness
As of March 31, 2025, Pakistan’s net-metering capacity reached 2,813MW, as reported in the Pakistan Economic Survey 2024-25. This signals a surge in residential, commercial, and industrial solar adoption—far ahead of previous government targets.
Proposed 18% Sales Tax on Solar Imports: A Step Back?
However, this rapid growth has policymakers caught between fiscal concerns and energy transformation goals.
In the FY 2025-26 federal budget, Finance Minister Muhammad Aurangzeb proposed a controversial 18% General Sales Tax (GST) on imported solar panels, citing the need to support the domestic solar manufacturing industry.
“This move is intended to encourage local industry growth,” he told the National Assembly, justifying the tax as a means of long-term energy sovereignty.
But critics argue the move could cripple the momentum of Pakistan’s solar transition, especially at a time when electricity consumption remains flat and many households and businesses are turning to solar to cut costs.
Implications for the Future of Green Industry in Pakistan
For industrial players like Gharibwal Cement, the tax may have limited impact in the short term—especially for projects already underway. But for future expansion, cost parity could be affected, particularly as imported panels currently offer better pricing and efficiency.
The dual realities of Pakistan’s solar policy—encouraging green adoption while increasing tax barriers—could stall new projects, just as momentum is accelerating.
There’s also concern about the national grid’s ability to manage rising distributed solar generation, with no clear roadmap yet presented on energy storage, peak load balancing, or transmission upgrades.
Conclusion: Industrial Solar Needs Policy Certainty, Not Contradiction
Gharibwal Cement’s solar investment is a model of forward-thinking energy planning, showcasing how industrial players can reduce environmental impact while enhancing operational resilience.
Yet, without clear, consistent policy—particularly around import tariffs, incentives, and infrastructure upgrades—Pakistan risks undermining its own green transition.
The government must balance its fiscal ambitions with the need to accelerate renewable adoption, especially in energy-intensive sectors. At stake is not just the trajectory of one industry, but the future competitiveness of Pakistan’s entire economy.