Mir Khalil-ur-Rehman Memorial Society seminar: Stalled solar project leaves farmers, contractors in crisis

LAHORE:Amid mounting economic and environmental challenges, the Punjab government’s solar tube well project, once heralded as a flagship green initiative, is now at risk of collapse due to policy inconsistency, administrative inertia, and delays in implementation. Stakeholders warn that the impasse has not only eroded trust in government commitments but also pushed farmers and contractors into a deepening financial crisis, raising broader concerns over the province’s approach to climate adaptation and energy sustainability.

These concerns were echoed during a special seminar organised by the Mir Khalil-ur-Rahman Memorial Society (MKRMS) of the Jang Group, titled “Solar Systems for Farmers in Punjab: Why Policy Continuity is Crucial?”. Attended by senior government officials, industry representatives, engineers, and academics, the session painted a sobering picture of stalled progress, unfulfilled promises, and the cascading effects of administrative delays.

Punjab’s Agriculture Secretary, Iftikhar Ahmad Sahoo, while speaking at the seminar, acknowledged that the province faces an unsustainable division in its irrigation system, with nearly half the agricultural output relying on tube wells. With the cost of diesel and electricity steadily rising, the solarisation of tube wells was envisioned as a cost-effective and climate-aligned alternative. According to Sahoo, 8,000 farmers were shortlisted through a government-run draw, with the added flexibility of choosing solar vendors of their own. However, implementation has been marred by lack of subsidies, poor coordination, and bureaucratic delays. He added that a parallel federal programme is under discussion, potentially offering soft-term agricultural loans for solarisation over a five-year period.

President of the Pakistan Solar Association, WaqasMosa, strongly criticised the delay in completing the CM’s Solarisation Programme, stating that Punjab’s small-scale farmers — who form the backbone of wheat production — remain especially vulnerable to climate-induced shocks. He argued that government indecision and new taxation proposals have not only increased costs by nearly 30 percent but have also encouraged avoidance behaviour, undermining transparency efforts. “Tax relief for farmers would immediately reduce system costs and encourage widespread adoption,” he said, adding that overregulation in the name of revenue collection is pushing farmers towards informal systems and unregulated vendors.

Mosa pointed to Punjab’s status as the country's food basket, which now faces recurrent climate stressors — heatwaves, drought, and flooding — with minimal structural resilience. For many smallholder farmers, the financial threshold for transitioning to solar remains prohibitive in the absence of reliable subsidies. The association has repeatedly urged the government to prioritise the continuity and credibility of the programme rather than treating it as an ad hoc political promise.

According to project data shared during the session, the provincial government has reportedly installed 47,000 solar systems thus far. However, approximately 3,000 of the 4,000 selected farmers in the current phase have already submitted their upfront contributions — collectively exceeding Rs1.5 billion — without receiving installations. This has led to growing protests and legal threats from affected stakeholders. Meanwhile, project contractors, having imported high-grade solar PV modules, VFDs, and equipment worth over Rs1 billion (some even by mortgaging private property), now face insolvency due to halted installations.

Dr. Abdul RehmanKashif, from the Department of Electrical Engineering at UET Lahore, stressed that international market volatility, fluctuating exchange rates, and unpredictable import duties have worsened the financial exposure of contractors.

"Rising inflation, coupled with the absence of price escalation clauses in project models, has led to severe cost mismatches. Contractors are now unable to meet overheads including warehousing, payroll, and logistics, with many heading toward bankruptcy,” he noted.

Ehsan Bhutta, Member P&D Board, underscored that infrastructure bottlenecks and land misallocation further hinder solarisation efforts. He pointed out that while over 170 land acquisitions have been recorded in solar project zones, only seven industrial units have materialised, highlighting the speculative nature of such investments in the absence of governance oversight. He also cited the need for improved coordination among provincial and federal entities.

Industry voices further argued that while the economic rationale for solarisation remains robust — with daily savings of over Rs10,000 per tube well and monthly energy cost reductions of up to Rs350,000 — these benefits are currently out of reach due to stalled execution. Afaq Ali Khan, Vice President of the Solar Association, remarked that the programme’s online portal was designed to ensure transparency, but without timely disbursement of funds or active oversight, its utility is severely diminished. He warned that delayed execution is sowing distrust among farmers and opening the door for substandard solar solutions. From a commercial standpoint, stakeholders urged that instead of importing $2.1 billion worth of panels annually, Pakistan should explore localised solar cell manufacturing to reduce import dependency. Mr. Amir Ali from the Lahore Chamber of Commerce suggested that a single solar cell factory would require roughly $200 million in capital investment, a cost easily recoverable through forward-looking public-private partnerships. He advocated for structural reforms that could make local production viable, reduce forex outflow, and bring long-term stability to the sector.

As the project teeters between potential and paralysis, the urgency for the Punjab government to reaffirm its commitment has never been greater.