The federal government of Pakistan has imposed 10% sales tax on solar panels that led to an immediate surge in the prices of solar panels across the country.
The Pakistan Solar Association (PSA) has strongly opposed the proposed tax and urged the government to review the decision.
The association has taken the stand that the tax could affect the progress made in promoting solar energy, even though the technology has provided affordable and sustainable energy to citizens and reduced the country’s dependence on fossil fuels.
Pakistan’s solar industry has grown rapidly in the last five years, the main reasons for which include increasing electricity tariffs and frequent load shedding. Many domestic consumers, businesses and the agricultural sector have shifted to solar systems, which are considered a one-time investment for long-term financial and environmental benefits.
However, the proposed tax has destabilized market trends.
Here are the latest prices of solar panels after 10 percent GST:
![Local residents at the Swat River, which is overflowing due to pre-monsoon heavy rains in the area on the outskirts of Mingora, the main town of Pakistan's Swat Valley [Sherin Zada/AP]](https://mmnews.tv/wp-content/uploads/2025/06/Flooding-in-Swat-river-120x86.jpg)
