In a significant move for Pakistan’s renewable energy sector, the Directorate General of Customs Valuation in Karachi has issued a new ruling revising the customs values of imported solar panels. According to Valuation Ruling No. 2012/2025, the latest import value for solar panels has been set at between US $0.08 and $0.09 per Watt, aligning with the recent decline in international market prices.
Response to Industry Concerns
The decision to reduce the valuation was made after several representations from solar industry stakeholders, including a formal request by the Pakistan Solar Association (PSA). The PSA had raised concerns over the previously enforced Valuation Ruling No. 1894/2024, which was based on higher per-watt prices, causing problems during customs clearance and documentation at banks.
The PSA argued that international prices of solar panels had dropped significantly, and the outdated customs valuation was not only inflating taxes but also triggering red flags from banks when invoice values were lower than the customs benchmark.
Meeting and Review Process
Customs officials held a key consultative meeting on February 19, 2025, in response to the concerns raised in PSA’s letter dated January 21.
After thoroughly reviewing import data, international price trends, and market feedback, customs authorities concluded that the previous valuation no longer reflected market realities. The new ruling, therefore, corrects the valuation gap and supports smoother import procedures.
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Aiming to Ease Import Bottlenecks
This downward revision will ease multiple challenges that solar panel importers face. It will help eliminate customs delays, allow banking transactions to proceed without compliance hurdles, and potentially lower the cost of solar systems for end-users. This aligns with the broader push to make clean energy more accessible in Pakistan.
In Context of Solar Taxation
The valuation update comes shortly after the government imposed a 10% import tax on solar panels in July 2025. While this tax raised affordability concerns, the revised customs valuation could help mitigate its impact by reducing the base value used to calculate duties.
By aligning customs policies with global price trends, Pakistan takes a step forward in promoting renewable energy while maintaining fiscal responsibility.
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