Prices of solar panels have increased sharply in Karachi, weeks before the government’s 18 percent sales tax on solar panel imports takes effect on July 1—pending final budget approval.
At Karachi’s Regal Chowk in Saddar, shopkeepers attributed the price hike to importers, claiming many customers were shocked by the sudden surge. Some buyers proceeded with purchases despite the uncertainty, while others left without buying due to the unexpected jump in prices.
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Traders reported new rates for complete solar systems, including inverter, water-based battery, iron frames, wiring, and installation. A 5kW setup is now priced between Rs. 600,000 and Rs. 700,000, a 3kW system costs Rs. 400,000 to Rs. 500,000, and a 6kW setup ranges from Rs. 700,000 to Rs. 800,000.
One trader suggested the government impose a 5 percent protective duty on finished imported panels instead and called for tax-free zones, better access to technology, skilled workforce development, and easier financing options for investors.
He warned that without such support, the 18 percent tax could push buyers toward the grey market, fueling smuggling and market instability.
Currently, two to three local solar panel manufacturers exist, but their production is too limited to meet demand. “It will take another one to two years to set up local assembly lines,” said trader Zakir, adding that once operational, they could also pave the way for exports
