ISLAMABAD:

The Federal Board of Revenue (FBR) has given its consent for the distribution of confiscated solar panels in Gilgit-Baltistan (G-B) to overcome electricity outages in the region.
G-B government has proposed a strategic distribution and transportation plan for 144,875 solar panels with a cumulative production capacity of 58.8 megawatts. The capacity is being divided into four primary streams.

During discussions in a recent meeting of the Economic Coordination Committee (ECC), the Ministry of Kashmir Affairs, Gilgit-Baltistan and States and Frontier Regions shared the background of the proposal. G-B chief secretary supported the plan, citing unprecedented load-shedding and environmental concerns as the justification. FBR says as per provisions of the Customs Act, 1969, the confiscated goods become the property of the federal government, therefore, these can be distributed with approval of the government. The economic decision-making body decided that the consolidated transportation and handling cost of Rs240.1 million would be borne by the G-B government and it would be subsequently recovered from the beneficiaries.

The Ministry of Kashmir Affairs & Gilgit-Baltistan briefed the meeting that the G-B Water & Power Department had conveyed the prime minister’s directive for the distribution of confiscated solar panels by the FBR in G-B to mitigate electricity shortages. It requested the ministry to take up the matter with the FBR for handing over the solar panels lying at Karachi ports.

In that context, the ECC was informed, the Ministry of Kashmir Affairs and Gilgit-Baltistan held detailed deliberations with the G-B government, Finance Division, FBR and Customs Karachi on various aspects of the proposal, including the technical condition of the solar panels, transportation and logistics arrangements (including handling at Karachi ports and in G-B), mode of transportation, generation capacity, distribution mechanism, eligibility and distribution criteria, revenue implications and legal requirements under Customs laws.

Pursuant to the deliberations, a technical committee constituted by the G-B government conducted a comprehensive inspection of the solar panels and assessed their technical feasibility and transport modalities. Accordingly, G-B submitted a detailed solar distribution plan.

The ECC was apprised by the ministry that G-B had proposed a strategic distribution and transportation plan for 144,875 solar panels with a cumulative capacity of 58.8MW. The capacity is being divided into four primary streams – domestic use (63.7%), business entities (30.6%), AKRSP collaboration (3.9%) and off-grid population (1.7%). Within the business sector, 40% of the capacity is reserved for IT enterprises, while the remaining 60% supports essential services like health facilities, educational institutions and small livelihood units. The allocation for domestic households is governed by a weighted average formula with focus on population density and load-shedding severity.

The ministry told the ECC that the transportation plan and cost estimates from the G-B government would be completed within 80 days. The consolidated transportation and handling cost was estimated at Rs240.1 million, with per-panel cost at Rs1,623.

During the ninth PSDP (Public Sector Development Programme) Steering Committee meeting on solar panels held in G-B on January 20, 2026, the regional government stressed that they could self-finance the requirement of Rs240.1 million for transportation and installation.

The Finance Division said that the G-B government had sufficient fiscal space and cash balance to bear expenses from its own resources. The ECC was requested to approve the proposal seeking authorisation for the FBR. Approval was also sought for the transportation and distribution plan with timelines.

The ECC considered a summary and approved the proposal.