Budget 2026-27: Solar panel prices may not go up as IMF eases condition

ISLAMABAD – Solar panel prices in Pakistan may not see a hike from July 2026 as the International Monetary Fund (IMF) has reportedly agreed to withdraw a proposed 10 percent increase in tax following intervention by Prime Minister Shehbaz Sharif. The development comes as the federal government is set to present the budget 2026-27 tomorrow (Friday). The decision marks a reversal of the earlier proposal, which had suggested raising taxes on imported solar panels. The revised position is expected to provide relief to consumers and stakeholders relying on solar energy solutions. The outcome is being viewed as a positive step in ongoing budget discussions, reflecting efforts by authorities to balance fiscal measures with the promotion of clean and affordable energy options. Earlier this month, it merged that the federal government is considering increasing the tax on solar panels in line with the conditions of IMF. Many households and businesses in Pakistan have been shifting towards solar systems in an effort to reduce electricity costs amid increasing power tariffs. Reports said the government had planned to increase the General Sales Tax (GST) on solar panels from existing 10 percent to 18% in upcoming budget 2026-27. However, the decision has now been reversed as IMF has eased the conditions.