The cost of solar panels in Pakistan has increased sharply following the introduction of an 18% general sales tax (GST) in the 2025–26 federal budget.
According to reports, prices have risen by Rs5.5 per watt, raising the rate from Rs30 to Rs35.5 per watt. A 585-watt panel, previously priced at Rs17,550, now costs approximately Rs20,767—an increase of nearly Rs3,200.
This development is expected to substantially raise the overall cost of solar power system installations for households across the country.
In response, the Pakistan Solar Association (PSA) has urged the government to reverse the decision. The association emphasized that the solar sector has played a critical role in providing cost-effective and environmentally sustainable electricity, while reducing the country’s dependence on fossil fuels.
The PSA warned that the tax would discourage solar adoption, inflate costs for consumers, and undermine investor confidence.
A senior PSA representative criticized the rationale behind the tax, which the government claims is intended to support domestic manufacturing.
The official said that Pakistan lacks large-scale or high-efficiency solar panel production facilities, and the few local manufacturers that exist produce low-wattage panels that do not directly compete with imported technology.
