Pakistan solar panel prices surge after proposed sales‑tax hike

Solar system costs in Pakistan have jumped sharply following media reports that the federal budget may raise the sales tax on solar panels from 10 % to 18 %. In Faisalabad, prices for on‑grid solar packages rose by about PKR 150,000‑200,000, with a 5 kW system now costing PKR 650,000 and a 15 kW system reaching PKR 1.45 million. In Karachi, a 585 W panel that previously sold for PKR 21‑22 thousand is now listed at PKR 27‑28 thousand, and larger panels have seen PKR 5‑8 thousand increases per unit.

Dealers report heightened market uncertainty and a slowdown in large commercial orders, as buyers await the final tax decision. Consumers say the rapid price escalation threatens the affordability of solar energy, which had been promoted as a low‑cost alternative to rising electricity bills.