Proposals made by the federal government in budget for next fiscal year 2025-26, including imposition of 10 percent tax on imported solar panels, will come into effect from July 1 that marks the start of the new financial year.

The Finance Bill 2025-26 will officially become law once President Asif Ali Zardari signs it today, June 30.

Earlier, Finance Minister Muhammad Aurangzeb had proposed an 18% tax on imported solar panels, but the business community strongly opposed the idea and urged the government to either remove the tax or reduce it.

Following the reaction, the government has decided to reduce the tax on solar panels to 10% and it will come into effect from July 1, 2025.

New Solar Panel Prices from July 2025

The current price of solar panels in Pakistan is between Rs28 and Rs38 per watt, depending on the brand and quality. With a new 10% tax, the prices of imported solar panels will go up, and dealers will announce the new rates in July 2025.

Meanwhile, Prime Minister Muhammad Shehbaz Sharif said on Sunday that the government will not discourage the growing use of solar energy in the country, calling it the cheapest way to generate electricity in the world.

He said this while speaking at the launch ceremony of ‘Apna meter; Apni reading’, a smart mobile app developed by the Ministry of Energy Power Division.

Prime Minister said that Pakistan is one of the few countries where solarization is happening quickly. He also called the new mobile app a revolutionary reform in the power sector that will help consumers. He said the app, available in five languages, will help improve coordination and harmony among provinces. Ministers, parliamentarians and relevant authorities also attended the event.