ISLAMABAD: Pakistan’s federal government, in a bid to promote locally produced solar panels, has decided to impose an 18% sales tax on imported solar panels in the budget for the fiscal year 2025-26.
According to the budget document, this initiative aims to create a level playing field between domestically produced and imported solar panels.
The goal is to support Pakistan’s solar panel manufacturing industry and promote the production of renewable energy equipment locally.
Officials explained that the domestic industry has been under pressure from inexpensive imports in the global market, which has posed challenges for small and medium-sized manufacturers producing solar panels in Pakistan.
Through this measure, the government aims to boost employment opportunities, reduce reliance on imports, and safeguard the interests of the local industry.
Earlier in the day, Pakistan’s Finance Minister Muhammad Aurangzeb unveiled the federal budget for the fiscal year 2025–26, with a total outlay of PKR 17.573 trillion, down 7% as compared to the PKR 18.9 trillion budgeted outlay of FY25.
The Finance Minister said the IMF has shown trust in the reforms undertaken by the incumbent government, and those claiming about the minibudget have turned silent now.
The minister highlighted that economic stability has been achieved through structural reforms, noting, “several measures have been implemented to improve the economy.”
He credited recent policy actions for bringing “economic stabilisation through reform measures”.
Referring to the recent economic situation, Aurangzeb noted that inflation has come down significantly, while remittances were $36 billion in 10 months.
