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Pakistan's import duty adjustment on solar panels—proposed in the 2025-26 fiscal year budget—officially took effect on July 1st. Under the new regulations, imported solar panels are now subject to a 10% duty. This rate represents a reduction from the initial 18% proposal by Finance Minister Muhammad Aurangzeb.

On June 30, 2025, Pakistan President Asif Ali Zardari signed the 2025-26 Finance Bill into law. Prior to this, the Finance Minister's proposal for an 18% duty on imported solar panels had faced strong opposition from the business community. 

Representatives from the Pakistan Solar Industry Association argued that the higher duty would increase end-user costs, dampen consumer enthusiasm for installations, and consequently hinder the country's renewable energy transition. Following multi-party consultations, the government reduced the duty to 10%. The new policy has been in effect since July 1st.

Despite the duty adjustment, the Pakistan government has clearly stated its continued support for the solar industry's development. 

Prime Minister Muhammad Shehbaz Sharif emphasized that solar power is "the most economical method of electricity generation in today's world" and that Pakistan is advancing solar adoption at "one of the fastest rates globally." He asserted that the government will not suppress domestic solar uptake through the duty adjustment. Instead, it will further lower the barrier for public adoption through measures such as streamlining approval processes and promoting smart meter usage.