Solar panel prices in Pakistan have seen a sharp increase following the imposition of an 18% general sales tax (GST) in the 2025–26 federal budget.
Reports indicate that the price per watt has surged by Rs5.5, rising from Rs30 to Rs35.5. As a result, a 585-watt panel that previously cost Rs17,550 is now priced at approximately Rs20,767—reflecting a jump of nearly Rs3,200.
This hike is expected to significantly raise the cost of installing solar power systems for households nationwide.
Reacting to the development, the Pakistan Solar Association (PSA) has called on the government to withdraw the tax, stressing that the solar sector plays a vital role in providing affordable, eco-friendly electricity and reducing the country’s reliance on fossil fuels.
The PSA cautioned that the new tax would discourage the adoption of solar energy, drive up consumer costs, and shake investor confidence.
A senior PSA official criticized the justification given by the government—that the tax aims to boost local manufacturing. He argued that Pakistan currently lacks high-efficiency or large-scale solar panel production facilities, and that the limited local manufacturing only caters to low-wattage panels that don’t directly compete with imported ones.
