Zero customs duty retained as regulatory framework tightened under Finance Bill 2026
ISLAMABAD: The Federal Board of Revenue (FBR) has announced new regulatory conditions for solar panel imports effective from July 1, 2026, while maintaining a zero per cent customs duty on imported solar equipment under the Finance Bill 2026.
Although the tariff structure remains unchanged, the updated framework introduces additional compliance requirements aimed at improving transparency, strengthening oversight and ensuring proper end-use verification of imported solar products.
Officials said the measures are designed to prevent misuse of duty-free imports and ensure that solar equipment is imported strictly for approved projects under Pakistan’s renewable energy expansion framework.
Regulatory Framework Introduced for Solar Imports
Under the revised system, importers of solar panels will be required to follow strict procedural conditions before clearance of goods.
The FBR said the new rules focus on project-based imports and aim to eliminate the possibility of commercial resale or diversion of duty-free solar equipment into the open market.
Authorities believe the updated mechanism will help streamline monitoring while supporting Pakistan’s growing solar energy sector.
EDB Certification Made Mandatory
A key requirement under the new rules is certification from the Engineering Development Board (EDB).
The EDB will be responsible for verifying that imported solar panels are intended for bona fide project use. Certified officers will upload relevant import details into the Pakistan Customs Computerised System using authorised credentials under Section 155D of the Customs Act, 1969.
This step is expected to improve documentation and reduce irregularities in duty-free solar imports.
Restrictions on Sale and Disposal
The FBR has also imposed strict restrictions on the sale, transfer or disposal of imported solar equipment.
Any such activity will require prior approval from the tax authority, and applicable customs duties and taxes will be charged if goods are diverted from their declared use.
Officials said this condition is aimed at ensuring imported solar panels remain within their intended project scope.
Compliance with Existing Import Laws
The imports will continue to be governed by existing regulatory provisions, including Condition (iv) of the applicable customs framework.
The FBR stated that all imports must comply with prevailing legal and procedural requirements, even under the duty-free regime.
Renewable Energy Oversight Strengthened
Officials said the updated policy reflects a balanced approach of maintaining incentives for solar energy adoption while strengthening regulatory control over imports.
Industry stakeholders are expected to review the new compliance obligations ahead of implementation, particularly project developers and renewable energy importers who rely on duty-free solar equipment.
The move comes as Pakistan continues to expand its renewable energy capacity amid rising demand for alternative power sources.
