IMF Agrees to Withdraw Proposed Tax Increase on Solar Panels in Pakistan

Islamabad:The International Monetary Fund (IMF) has reportedly agreed to withdraw a proposed increase in taxes on solar panel products following discussions with the Pakistani government.

According to sources, the IMF accepted Pakistan’s request not to impose additional taxes on solar panels and stationery items after efforts led by Prime Minister Shehbaz Sharif.

The development is being viewed as a significant achievement for the government as it prepares the Federal Budget for the 2026–27 fiscal year. Officials believe the decision will help protect public interests, particularly at a time when demand for renewable energy solutions is increasing across the country.

Meanwhile, negotiations between the government and the IMF are continuing over proposed tax concessions for Pakistan’s real estate sector. Both sides are reportedly discussing possible measures aimed at balancing economic reforms with support for the property market.

Further details are expected as budget consultations between Pakistan and the IMF progress.