Prices of solar panels, inverters, and lithium batteries have increased sharply across Pakistan ahead of the upcoming federal budget 2026-27, as anticipation builds over higher taxes on imported solar equipment. Market dealers report that solar panel prices have risen by as much as Rs4,000 per unit, with 585W to 720W panels now selling between Rs26,000 and Rs32,000. Inverters have also become costlier by up to Rs20,000, while small residential solar systems have seen an increase of Rs5,000 to Rs10,000. Lithium battery prices have surged by up to Rs20,000, with a 5-kilowatt battery now reaching around Rs260,000 in local markets.
Reasons Behind the Price Hike
Dealers attribute the spike to uncertainty over proposed tax changes in the budget, including a possible increase in sales tax from 10% to 18% on imported solar equipment. Many traders have reportedly withheld stocks, tightening supply and pushing prices further upward. The rising costs come as demand for renewable energy continues to grow amid high electricity tariffs, while concerns persist that additional taxation could slow down solar adoption in the country.
Broader Policy Uncertainty
The International Monetary Fund (IMF) has also reportedly expressed reservations over tax relief measures for imported electric vehicles ahead of the budget, adding to broader policy uncertainty in the energy and transport sectors. This development has further fueled market anxieties, as stakeholders await clarity on the government's fiscal roadmap.
Meanwhile, in other news, a Mi-17 helicopter crash near Muzaffarabad resulted in all onboard being martyred, and four tourists were killed while 10 injured as a passenger van caught fire on Murree Expressway. However, the primary focus remains on the solar equipment market, which is bracing for potential policy shifts that could impact renewable energy adoption in Pakistan.
