ISLAMABAD – Pakistani markets witnessed panic buying of solar systems amid fear of big increase in sales tax in Budget 2026-27. But after the official announcement of Finance Bill, there is a considerable drop in prices.
Ahead of the budget announcement, there were reports about a jump in sales tax from 11% to 18%, but speculation spread quickly, prompting masses to buy in advance in an effort to avoid higher costs.
The surge in demand was visible across major solar markets, where buyers scrambled to secure good deals before budget announcement. During this period, prices rose noticeably. In late May and early June, solar panel prices increased by Rs5,000 to Rs7,000, while lithium battery prices jumped by upto Rs2Lac.
For many consumers, the decision to buy was driven by fear of missing out on lower prices. When federal budget was finally presented, it contained no increase in the sales tax on solar systems. The clarification quickly changed market sentiment, and prices began moving downward.
Those familiar with development lamented hype and panic saying market players capitalized the uncertainty. According to solar sector stakeholders, speculation surrounding the budget created an environment where prices could be pushed higher despite no official policy change having been announced.
Market analysts now expect further corrections. Solar panel prices are projected to decline by around Rs2,000 in the coming days, with additional reductions of up to Rs7,000 possible over the next two weeks. Lithium battery prices are also expected to fall significantly, reversing at least part of the recent increases.
The episode has highlighted the challenges consumers face when making major financial decisions amid policy uncertainty. For families already struggling with rising living costs and frequent electricity price increases, solar energy represents a significant investment. Many buyers say they acted quickly to protect themselves from what they believed would be even higher expenses in the future.
Consumer advocates argue that stronger oversight and more transparent communication are needed to prevent misinformation from influencing markets and driving unnecessary price volatility.
With budget now finalized and the tax structure unchanged, the solar market is gradually returning to normal.
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