Chinese Company AIKO to Establish Solar Panel Manufacturing Facility in Punjab

A Chinese clean energy technology firm, AIKO, has entered into an agreement with the Punjab government to establish a solar panel manufacturing and assembly plant in the province, aiming to enhance Pakistan’s renewable energy sector.

The agreement, facilitated by the Special Investment Facilitation Council (SIFC), will enable AIKO to set up the facility in Punjab. The agreement was formalized at 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 cater to the local market but is also anticipated to boost Pakistan’s export sector.

Minister Hussain highlighted the strategic significance of the new facility, stating, “AIKO’s solar panel factory will serve the local market and also contribute to exports.” The provincial government is also planning broader initiatives to leverage solar technology, including the conversion of 7,000 tube wells to solar power and the distribution of solar panels to low-income households to increase access to affordable energy.

AIKO, a leading figure in the clean energy industry, will bring valuable technological expertise to Punjab. The plant’s establishment is expected to reduce Pakistan’s dependence on imported solar panels, which currently dominate the country’s renewable energy landscape. At present, Pakistan imports most of its solar panels from China.

The shift towards renewable energy is crucial for Pakistan, where only 5.4 percent of the installed power generation capacity of 39,772 megawatts comes from renewable sources, such as wind, solar, and biomass. Fossil fuels still dominate the power mix at 63 percent, with hydropower contributing 25 percent, according to the National Electric Power Regulatory Authority (NEPRA).

Last year, the Alternate Energy Development Board finalized a 10-year policy aimed at boosting the domestic manufacturing of solar panels and related equipment. With support from Chinese partners like AIKO, the government aims to install around 9.7 gigawatts (GW) of renewable energy power generation systems across Pakistan by 2030.

Chaudhry Shafay Hussain also noted that AIKO’s investment is just one part of a broader strategy to enhance the province’s solar energy infrastructure. “Several other foreign companies have expressed interest in investing in Punjab’s solar energy sector,” he added.