Pakistan’s 2025-26 Budget Likely on June 10: Focus on Solar Panel Industry Sparks Interest

Islamabad:Pakistan’s upcoming **federal budget for fiscal year 2025-26**, expected to be announced on **June 10**, is anticipated to play a crucial role in shaping the country’s economic direction, with **renewable energy—especially solar power—at the forefront** of strategic priorities.

Public attention, as always, remains fixed on possible **tax hikes or relief** on essential items, particularly in the energy sector. According to industry experts, the **solar panel sector**, already critical to Pakistan’s shift toward sustainability, is unlikely to face significant new financial burdens in the upcoming budget.

**Afaq Ali Khan**, Vice Chairman of the **Pakistan Solar Association**, stated that **solar inverters already carry a 21% GST**, while **batteries are subject to taxes and duties of around 24%**. He does **not foresee any additional taxes** being imposed on these items.
“There is a slight possibility that GST could be applied to solar panels,” he said, “but even if it happens, it will only cause a **minor price difference of around PKR 5 to 6 per watt**, which is unlikely to affect affordability due to already low panel prices.”

Khan emphasized that due to **high supply and stabilized prices**, the solar market is expected to remain relatively unaffected, calling this a **positive indicator** for the solar industry’s sustainability and growth.

Similarly, **Sharjeel Ahmed Silhari**, Director of **Re-Nergy Solutions**, predicted that the **government may retain or even reduce existing import duties and sales taxes** on solar-related equipment.
“The objective is to keep solar system costs affordable for the general public,” he said. “This would encourage wider adoption of clean energy and reduce financial pressure on consumers.”

He also pointed out that **tax relief for local manufacturers** might be extended to promote **domestic solar production**, which could include **tax exemptions, concessional loans**, and **technology transfer incentives**.

Silhari further suggested the government may **relaunch or expand solar subsidy programs** and introduce **new financing models** through banks, especially to benefit **small and medium-sized users**. These steps would be vital in ensuring access to affordable solar energy and supporting Pakistan’s long-term clean energy goals.

Overall, industry stakeholders expect a **favorable outlook for the solar sector** in the 2025-26 budget, aligning with Pakistan’s ongoing efforts to address energy shortages and transition toward **renewable power solutions**.