Solar panel prices have sharply increased in local markets as anticipation builds around the proposed 18% sales tax on imports, expected to be implemented from July 1 pending budget approval.
At Karachi’s Regal Chowk in Saddar, traders blamed importers for the sudden spike, saying many customers were either shocked by the new prices or rushed to buy out of fear of further hikes. Some walked away without purchasing anything.
One shopkeeper noted that a 5kW solar system complete with an inverter, water-based battery, iron frame, wiring, and installation now costs between Rs600,000 and Rs700,000. A 3kW system is being sold for Rs400,000–500,000, while a 6kW setup is priced at Rs700,000–800,000.
Another trader said the cost of a 5kW system with a lithium battery has risen to Rs800,000–850,000, up from Rs700,000–750,000 before the budget announcement.
A 3kW setup with a lithium battery is now Rs750,000, while the same system using a water battery goes for Rs350,000–400,000.
Traders cautioned that if the government doesn’t take steps such as introducing tax-free zones, the 18% tax could drive a rise in smuggling through unofficial channels.
One seller recommended a 5% protective duty on finished panels and urged the government to back local production and offer financing support to keep the market stable.