Pakistan, May 31 -- Setting up solar power systems is about to become considerably more expensive for consumers in Pakistan, as the government considers a substantial tax hike on solar panels in the upcoming federal budget for the fiscal year 2026-27.

According to sources close to the development, the International Monetary Fund (IMF) has strongly opposed tax exemptions historically granted to the country's affluent classes and has demanded their immediate withdrawal. As part of its stringent conditions, the global lender has categorized solar panels, along with electric and hybrid vehicles, as luxury items primarily utilized by the elite. In compliance with the IMF's mandate, a proposal is currently under review to increase the sales ta...