Pakistan likely to see rise in solar panel and internet prices from Jan 2026

ISLAMABAD: The prices of solar panels and internet services in Pakistan are expected to increase in the coming months as the government and the International Monetary Fund (IMF) consider new tax measures to deal with a possible revenue shortfall.

According to reports, these “emergency tax measures” will be part of the IMF’s second review report, which will be released after the approval of the third $1 billion loan tranche. The additional taxes would only be implemented if government revenue falls short or if spending isn’t reduced during the first half of the fiscal year (July to December).

Proposed Tax on Solar Panels

The Federal Board of Revenue (FBR) has proposed increasing the Goods and Services Tax (GST) on imported solar panels from 10% to 18%, starting January 2026.

Tax Increase on Internet Services

The government is also considering raising the withholding tax on internet services from the current 15% to between 18% and 20%.

Impact on Solar Power

According to FBR data, imported solar panels could help Pakistan produce 25,000 to 30,000 megawatts of electricity in the coming years. At present, rooftop solar systems generate around 6,000 MW, with the potential to double soon.

However, officials are cautious about rapid solar growth because it reduces dependence on the national power grid, which already faces a capacity payment burden of Rs1.7 trillion this fiscal year.

If implemented, these tax hikes could make solar energy and internet services more expensive for consumers in 2026, affecting both households and businesses.

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