Pakistan’s solar industry is gradually moving toward a future where compliance, transparency, and responsible sourcing are becoming increasingly important alongside pricing and technology. The recent introduction of SRO 704(I)/2026 by the Ministry of Commerce marks a significant step aimed at strengthening oversight of imports linked to forced labour while encouraging stronger supply chain governance across industries.
The regulation comes at a time when Pakistan’s renewable energy sector is witnessing substantial growth. Rising energy demand and increasing solar adoption across residential, commercial, and industrial segments have accelerated the need for sustainable and reliable energy solutions. Alongside efficiency and affordability, businesses and consumers are increasingly paying attention to how products are sourced and whether global compliance standards are being met.
Globally, solar supply chains have come under greater scrutiny in recent years, particularly regarding labour rights, sustainability governance, and responsible sourcing practices. Governments, financial institutions, and international buyers are placing growing emphasis on Environmental, Social, and Governance (ESG) standards to ensure products are manufactured and procured through transparent and ethical systems.
Industry observers believe Pakistan’s latest regulation reflects this broader global shift. The policy is expected to gradually increase the importance of traceability, supplier due diligence, and responsible procurement practices within the local solar ecosystem.
Historically, solar purchasing decisions have often focused heavily on pricing and performance. However, changing compliance expectations may encourage greater market attention toward governance systems, sustainability commitments, and supply chain visibility.
Globally recognized Tier-1 solar manufacturers have increasingly strengthened ESG-focused initiatives to align with emerging international requirements. These efforts include supplier due diligence mechanisms, sustainable procurement standards, human rights governance frameworks, and supplier ESG development programs.
For example, industry-leading solar manufacturer LONGi has expanded its sustainability and human rights governance initiatives through supplier due diligence systems, ESG audits, and sustainable procurement standards aligned with international frameworks. The company’s policies prohibit forced labour, child labour, and discrimination, while its supplier due diligence initiatives are aligned with the UN Guiding Principles on Business and Human Rights (UNGPs). LONGi has also introduced supplier ESG capacity-building programs focused on labour rights, governance, and responsible procurement practices. Its ISO 20400 Sustainable Procurement Certification, along with MSCI ESG and EcoVadis recognitions, reflects the broader industry shift toward more transparent and responsible supply chains,” industry observers note.
As Pakistan’s solar market continues to evolve, stronger compliance frameworks and responsible sourcing practices are expected to play an increasingly important role in building transparency, strengthening customer confidence, and supporting long-term industry growth.
