ISLAMABAD: Customs valuation of solar panels imported from any source by the Directorate General of Customs Valuation in Karachi has been increased by 20 percent to 30 percent, which is a major change and will immediately affect the landed cost of solar panels in Pakistan. This will further lead to an increase in prices, making them more expensive for residents, commercial customers, and industries that have fueled the demand for solar power in the country for the last two years. This increase in solar panel customs value in Pakistan occurred under Valuation Ruling No. 2077-2026 announced on Tuesday and replaced the earlier Valuation Ruling No. 2012-2025.
It was found by the directorate that the prior ruling on the valuation was no longer valid due to rising international prices for solar panels over the intervening period, thus leaving room for discrepancies between the customs values used by the importers and the prevailing market price. The solar panel ruling on customs value in Pakistan ensures that the discrepancy is addressed by the systematic re-determination of the value as per Section 25A of the Customs Act 1969.
The increase in prices worldwide prompted the change in the solar panel customs value Pakistan
It can be seen from the above discussion that the directorate of valuation made its decision regarding the change in the customs value for solar panels on account of the fact that the previous decision was very old, and prices of solar panels in the international market had changed over the period. Valuation Ruling No. 2012-2025 was around one year old at the time when this ruling was revised.
In order to set up a baseline for the new customs value Pakistan of solar panel imports, the directorate carried out an initial study on the declarations, assessments, and prevailing prices of the imports before proceeding with the formal procedure under Section 25A of the Customs Act 1969. This information was used as the basis for the formal valuation method adopted to reach the conclusion in ruling 2077 of 2026.
Consultations with stakeholders conducted prior to finalization of the ruling for customs value Pakistan solar panel
The directorate convened a meeting with all relevant stakeholders before coming up with the ruling on the customs value Pakistan solar panel – thus providing an opportunity for all interested parties such as importers and industry players to state their cases and submit any documentation to substantiate their claims.
This is the consultation process, which involves the necessary procedures as provided for in Pakistan’s customs value legislation. This ensures that there is an opportunity afforded to all those affected by the decision to contribute to the decision-making process prior to its implementation.
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Valuation by similar goods value method for final solar panel customs value Pakistan ruling
In accordance with Sections 25 of the Customs Act 1969, the directorate used the valuation methods described therein in a consecutive sequence to determine the customs value of solar panels in ruling 2077 of 2026. However, the transaction value method, as per Section 25(1), was not found appropriate due to the absence of adequate data satisfying the provisions of Section 25(2). Although the identical goods value method, as per Section 25(5), provided some data suitable for use, it lacked sufficient conclusive evidence in terms of quantity and quality.
Ultimately, the directorate depended on the Similar Goods Value Approach under Section 25(6), which used information about customs clearance of imports that were similar in nature to the solar panels to determine the customs values that have been set as the standard under Ruling 2077 of 2026. The increment of 20% to 30% in the new ruling is a true indication of the actual rise in the price of solar panels internationally, based on the data analyzed by the directorate regarding its imports.
Implications of the solar panel customs value Pakistan increment for purchasers
The update to the solar panel customs value Pakistan will have direct effects on all parties involved in Pakistan’s solar chain, from importers determining landed cost to installers offering installation rates to customers buying rooftop solar panels. With a hike of around 20% to 30% in solar panel customs value Pakistan, it becomes more expensive due to the incremental impact on duty and taxation costs.
In a marketplace which has seen exponential growth based on the reduction in prices of solar panels and consumer preference towards energy independence, the increase in the customs value of solar panels for Pakistan is a notable challenge to its progress — especially considering that Pakistan’s solar penetration was poised to move into the middle-income consumer market from its early adopter stage.
