ISLAMABAD: The prices of solar panels and internet services in Pakistan may rise in the coming months as the government and the International Monetary Fund (IMF) consider new tax measures to tackle a possible revenue shortfall.
Reports suggest that these proposed “emergency tax measures” will be included in the IMF’s second review report, which is expected to follow the Executive Board’s approval of the next $1 billion loan installment.
These taxes would come into effect if the government’s revenue falls below target during the first half of the fiscal year (July to December) or if the Finance Ministry fails to cut spending.
Increase in Tax on Solar Panels
One of the key proposals from the Federal Board of Revenue (FBR) is to raise the Goods and Services Tax (GST) on imported solar panels from 10% to 18%, starting January 2026.
The IMF and FBR are also reviewing a plan to increase the withholding tax on internet services from 15% to between 18% and 20%.
According to FBR estimates, imported solar panels could generate between 25,000 and 30,000 megawatts of electricity in the coming years.
At present, rooftop solar systems are producing about 6,000 MW, with the potential to double that output in the near future.
Officials, however, remain cautious about promoting large-scale solar installations too quickly, as they reduce reliance on the national grid, which is already burdened with capacity payments estimated at Rs1.7 trillion for the current fiscal year.