I don't know if our government is subsidizing solar power, but here is some of the information I could find.
Solar power in Pakistan - Government Policy
Chief Ministers senior advisor Sardar Zulfiqar Khosa has also stated that the Punjab government will begin new projects aimed at power production through coal, solar energy and wind power; this would generate additional resources.
The Government of Pakistan has allowed the provincial government of Sindh to conduct research on the feasibility of solar power. The government is planning to install a water filtration plant to make the seawater sweet through solar energy, said Sindh Minister for Environment and Alternative Energy, Askari Taqvi.
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Stefan Nicola
Jun 4, 2012
Conergy Agrees To Supply Pakistans Largest Solar-Energy Complex
Conergy AG (CGYK), a German solar-panel maker, will plan and supply Pakistans biggest solar-power plant as the country seeks to increase access to electricity.
The 50-megawatt project at Bahawalpur in the Cholistan region is owned by DACC Power Generation Co. and the Pakistani government and will supply 30,500 households with electricity, Conergy said today in an e-mailed statement.
Total investment will probably be about $170 million to $190 million, with Conergys share at about 60 million euros ($75 million) to 70 million euros, said Antje Stephan, a Conergy spokeswoman.
The government is seeking to spur investment, create jobs and expand access to power in a country where some areas can be without energy for as long as 18 hours a day, Conergy said. The company, working with developer Ensunt Inc., will supply 210,000 modules and 140 inverters, the Hamburg-based manufacturer said.
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Masroor Gilani (AFP)
Mar 26, 2012
Energy-starved Pakistan eyes solar power
MUZAFFARABAD, Pakistan From mosques, to homes and streets, Pakistanis are increasingly seeing the light and realising that year-round sun may be a cheap if partial answer to an enormous energy crisis.
"It's the best thing I bought this winter," says Sardar Azam, a former civil servant retired to a river-side home in Pakistani-administered Kashmir, showing off his water-heating solar geyser installed on the terrace.
"The biggest advantage is that you spend money once and it runs on sunlight which is free," Azam added.
Pakistan needs to produce 16,000 megawatts of electricity a day but only manages 13,000 megawatts, according to the Pakistan Electric Power Company.
The shortfall means that millions endure electricity cuts for up to 16 hours a day, leaving them freezing in winter and sweltering in summer while hitting industry hard, exacerbating a slow-burn recession.
Voters say it is their biggest single concern, secondary to the war against Al-Qaeda and the Taliban, and so the government has been increasingly vocal about redressing the problem as it eyes elections within a year.
"I think all our friends are encouraged to understand the real energy crisis that is in Pakistan. We can't afford to be selective of where we receive our energy supply from," Foreign Minister Hina Rabbani Khar said this month.
At the time, she was referring to Pakistan's determination to build a pipeline and import gas from Iran, regardless of US threats of sanctions, but the message was clear: on the energy front, Pakistan needs any help it can get.
Arif Allaudin, who heads the Alternate Energy Development Board, would like to see more of that help coming from renewable sources, saying there was a 2.4 million megawatt potential for solar energy alone in Pakistan.
Niaz Ahmed Kathia, director of private company Alternate Energy Systems, said abundant and free sunshine was the answer to Pakistan's energy woes.
"Energy is our biggest issue, more than terrorism, and if we replace our one million tubewell pumps with solar ones, we can save 7,000 megawatts," Kathia told AFP at the demonstration of a solar well in the capital.
The majority of Pakistan's tubewell pumps, which pump out underground water, run on the strained national grid or on diesel power.
There is no pretence that solar power is the only answer, but this month the prime minister ordered the government to provide solar electricity in remote villages far from the national grid.
The government described renewable energy as the "investor's choice" and said the private sector has offered to produce 1,500 megawatts a day.
In the mountains of Kashmir there is no gas pipeline and in the cold winter months electricity bills are prohibitively expensive.
In Azam's hometown of Muzaffarabad, the capital of Pakistani-controlled Kashmir, solar panels light up a public park and mosques.
Solar street lights are also being installed slowly in cities such as Rawalpindi, Lahore and Karachi.
Pakistan's first on-grid solar power station, capable of producing 178.9 kilowatts, began test operations in Islamabad this month with a grant of $5.4 million from the Japan International Cooperation Agency.
"It is a seed for thousands more solar power plants," Senator Rukhsana Zuberi, a former chairperson of the Pakistan Engineering Council told AFP.
This winter Pakistan suffered a two billion cubic feet a day shortage of natural gas -- usually the mainstay of millions delivered to homes and industry via pipelines -- sparking protests and forcing factories to lay off labourers.
The trouble is remedial plans are only at an embryonic stage.
"We plan to promote the use of solar geysers as the gas shortage is becoming acute," petroleum and natural resources minister Asim Hussain said.
"The gas companies would install solar water heaters at consumer premises and deduct the amount in installments in the gas bills," he added.
Power generated during sunlight hours can be stored in deep cycle lead acid batteries to power lights, radios, televisions and fans at night.
Norwegian company Telenor says it has set up 50 solar-powered cell sites, mostly in remote areas, capable of reducing 2.5 tonnes of carbon dioxide per site by saving over 940 litres of diesel a month.
Traders say demand has certainly risen. A 170-litre (37-gallon) capacity solar geyser starts from 27,000 rupees ($300) and a 218-litre version for 32,000 rupees as a one-time cost.
"Solar geysers can reduce gas bills considerably. The technology is not only environment friendly but also pocket friendly," said vendor Shakil Ahmed.
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I don't recall hearing about it. 
