Business Desk 
Oct 17, 2025
As part of the government's attempts to boost revenue under the International Monetary Fund (IMF) programme, Pakistan may increase taxes on solar panels and internet services.
The proposed taxes came after the IMF and the government decided to scrap plans to increase taxes on other industries and look for alternative revenue sources.
In proposals submitted to the IMF, the Federal Board of Revenue (FBR) has proposed raising the Goods and Services Tax (GST) on imported solar panels from 10% to 18%, with effect from January 2026. The 15% withholding tax on internet services might also be increased to 18–20%.
According to FBR estimates, imported solar panels are expected to generate between 25,000 and 30,000 megawatts of electricity in the coming years.
At the moment, rooftop solar panels generate about 6,000 megawatts, but that amount could double. As dependence on the national electrical grid declines, the government is looking into ways to restrict the growth of solar energy.
In the current fiscal year, capacity payments are expected to total Rs1.7 trillion. Together with the International Monetary Fund (IMF), the government is formulating policies aimed at increasing revenue and reducing expenditures.
