After the IMF’s new demands, there is a possibility of an increase in internet and solar panel prices, while this development has emerged after the proposals to raise taxes on fertilizers and agricultural pesticides were rejected.
According to details, the government has begun considering imposing alternative taxes on sectors such as solar panels and internet services to offset the shortfall in government revenue.
A report quoting sources claimed that these “emergency tax measures” will be included in the IMF’s upcoming second review report, which will be issued after the Fund’s Executive Board approves a $1 billion tranche.
These measures will only be implemented if revenue targets for the first half of the fiscal year (July to December) are not met or if the Ministry of Finance fails to control expenditures.
According to proposals presented by the Federal Board of Revenue (FBR) to the IMF, if necessary, the general sales tax (GST) on imported solar panels could be increased from 10% to 18% starting January 2026.
In addition, the government is also considering raising the withholding tax on internet services from 15% to 18% or even 20%.
According to FBR estimates, imported solar panels have the potential to generate 25,000 to 30,000 megawatts of electricity in the coming years. Currently, rooftop solar installations are producing 6,000 megawatts, which could double rapidly.
Officials said the government is exploring ways to limit the rapid expansion of solar energy, as reduced reliance on the national grid is increasing capacity payments, which are projected to reach Rs1.7 trillion in the current fiscal year.
