ISLAMABAD: Punjab Chief Minister Maryam Nawaz Sharif has invited China’s Jinko Solar Company to set up a manufacturing plant in Pakistan’s most populous province, according to televised comments by the provincial chief executive released on Friday.

Pakistan’s energy sector has long struggled with financial strain due to circular debt, power theft and transmission losses, leading to blackouts and high electricity costs. 

Experts say Pakistan has ideal climatic conditions for solar power generation, with over nine hours of daily sunlight in most parts of the country. According to the World Bank, utilizing just 0.071 percent of the country’s area for solar power generation would meet Pakistan’s entire electricity demand.

Currently, only 5.4 percent of Pakistan’s installed power generation capacity of 39,772 megawatts comes from renewables like wind, solar and biomass, while fossil fuels still make up 63 percent of the fuel mix, followed by hydropower at 25 percent, according to the National Electric Power Regulatory Authority.

“I think it’s high time that you set up a manufacturing unit in Pakistan,” CM Sharif said in televised comments during a factory visit to Jinko Solar Company in Shanghai.

“Pakistan has abundant solar resources. It’s a country that has sun all the time.”

She said Pakistan, with a population of around 240 million people, was a huge market where the demand for solar power was increasing, with the potential to make it Jinko Solar’s fourth biggest market.

“The cost of the energy power in Pakistan’s electricity is coming down and there is no dearth of workforce in Pakistan which should not be a problem,” Sharif added. “Then we have the infrastructure that is required to set up a factory, we’ve got tax-free zones where we have all the facilities available.”

Sharif said the Punjab government was incentivizing the use of solar power and launching two projects where free solar panels would be given out to users of 200 or fewer units.

“We are also providing long-term loans with easy instalments without interest for a huge, huge population that consumes electricity between 200 to 500 units,” she said. “And this is an upcoming project, we haven’t yet started it but we’re working on it, it’s been finalized and we will be launching it in a week.”

According to a World Economic Forum report last month, Pakistan was now the sixth-largest solar market in the world.