Pakistan unveils solar credit scheme for flat owners amid looming tax changes

The Pakistani government has introduced a "solar wheeling" policy that lets owners of city apartments install solar panels on land in their villages and apply the generated electricity credit toward their flat’s electricity bills. The scheme, announced by the prime minister and explained by the Rawalpindi Chamber of Commerce president, aims to ease the energy crisis for residents who lack roof space for panels.

At the same time, budget preparations for 2026‑27 show the International Monetary Fund urging the removal or reduction of tax breaks for the solar and electric‑vehicle sectors. Proposed measures include raising sales tax on solar panels, batteries and inverters from 1% to 18% and ending most exemptions for electric‑vehicle components after June 2026, which could increase prices for these products.

Both initiatives are part of the government’s broader effort to address Pakistan’s electricity shortages while balancing fiscal pressures from the IMF.