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Pakistan’s green gamble

By Mansoor Qaisar
03 February, 2025

Pakistan is at a critical juncture where the shift to eco-friendly energy is no longer an option but a necessity.

Pakistan’s green gamble

Pakistan is at a critical juncture where the shift to eco-friendly energy is no longer an option but a necessity.

During a recent meeting of the Senate Standing Committee on Climate Change, Federal Minister for Power Awais Ahmad Khan Leghari revealed that 30 million motorcycles in Pakistan consume more than $1.6 trillion worth of petrol annually, accounting for 40 per cent of the country’s total petrol consumption.

Around 200MW furnace oil power plants are being retired ahead of schedule, and 55 per cent of Pakistan’s electricity currently comes from environmentally friendly sources. By 2030, the country aims to generate 60 per cent of its electricity from renewable sources, with a new wheeling policy set to promote green energy production and sale. These developments underscore Pakistan's commitment to sustainability but also highlight the challenges it faces in implementing large-scale renewable energy transitions.

Pakistan has long struggled with energy shortages, over-reliance on fossil fuels, and increasing electricity demand. Historically, our energy mix is dominated by oil and gas. Now gas resources are depleting, we are increasingly relying on imported LNG. The share of coal has increased (with the retiring of FO-based power plants) in the electricity fuel mix, but it includes both local and imported coal.

However, as climate change intensifies, Pakistan has recognised the need to transition to renewable energy sources. Hydropower, solar, and wind energy are increasingly integrated into the energy grid, with major projects underway in Sindh and Punjab where conditions are favourable for large-scale investments in green energy.

Pakistan is one of the most climate-vulnerable countries in the world. Rising temperatures, erratic rainfall, and devastating floods have displaced millions and caused severe economic damage. The country has witnessed catastrophic floods, heatwaves, and droughts, all linked to global warming and an over-reliance on fossil fuels. The transition to renewable energy is imperative to mitigate these environmental threats and reduce carbon emissions. Investing in clean energy not only secures a sustainable future but also strengthens national resilience against climate disasters.

Apart from its environmental necessity, renewable energy provides economic stability. Pakistan heavily depends on imported fuel, which drains foreign reserves and exposes the economy to global oil and gas price fluctuations. By expanding its renewable energy infrastructure, Pakistan can ensure energy security, reduce its trade deficit, and create thousands of new jobs in the green energy sector. Moreover, renewable energy solutions can support rural electrification, providing electricity to remote areas where conventional grid extension is impractical.

The Pakistan Institute of Development Economics (PIDE) has raised alarms over Pakistan’s vulnerability to climate change. PIDE emphasises that deforestation, unsustainable urbanisation, and unchecked dependence on fossil fuels are worsening environmental challenges. PIDE warns that unchecked deforestation and industrial emissions will result in severe environmental and economic consequences, stressing the importance of climate-resilient infrastructure and stronger governance frameworks.

If effectively executed, the government’s renewable energy initiatives could transform Pakistan’s energy landscape, reducing carbon emissions, stabilising energy costs, and enhancing climate resilience for future generations

In alignment with these concerns, PIDE’s newly appointed vice chancellor, Dr Muhammad Nadeem Javaid, has outlined a comprehensive vision to integrate climate change research into national policy and institutional development. His strategic plan involves the establishment of specialised research centres focused on climate resilience, renewable energy, and sustainability. He also aims to create partnerships with international organisations to co-produce high-impact research on climate change and sustainable development.

Under his leadership, PIDE plans to launch a 'Sustainable Pakistan Initiative' that prioritises green energy solutions and eco-friendly urban planning. Dr Javaid also envisions a 'Policy Lab' that provides real-time advisory services to the government, ensuring that sustainability remains a core focus in national development.

While Pakistan is making progress in green energy, neighbouring countries have already taken significant strides. India, for example, has an installed renewable energy capacity of over 160 GW and aims to reach 500 GW by 2030. Through initiatives like the International Solar Alliance, India has established vast solar parks, becoming a leader in the region. Bangladesh, although lagging in total renewable energy capacity, has successfully implemented off-grid solar power projects to improve rural electrification.

Sri Lanka has also made commendable efforts, with over 50 per cent of its electricity coming from renewable sources. The country has set a target of 70 per cent renewable energy by 2030, surpassing Pakistan’s goal, and is investing heavily in large-scale solar and battery storage systems.

Despite ambitious targets, Pakistan faces several challenges in transitioning to green energy. Experts estimate that around $50 billion will be needed to meet the 60 per cent renewable energy target by 2030. Another challenge, rather more significant is the existing installed electricity capacity with long-term contracts. Existing capacity is much higher than demand.

However, with the decreasing costs of wind, solar and battery storage, their adoption is increasing, creating challenges for the grid. Political instability and inconsistent policy frameworks further impact the pace of renewable energy adoption.

With its vast renewable energy potential, Pakistan has the opportunity to lead South Asia in sustainable energy development. The shift toward solar, wind, and hydroelectric power will not only reduce dependency on costly imports but also contribute to job creation, environmental preservation, and economic growth. To achieve this, the government must strengthen policies, encourage public-private partnerships, and attract foreign investment into green energy projects. Additionally, increased collaboration with global think tanks and research institutions can help bridge knowledge gaps and accelerate the adoption of cutting-edge renewable energy technologies.

Pakistan’s move towards eco-friendly energy is a critical step towards ensuring energy security, economic stability, and environmental sustainability. While challenges persist, the progress in hydropower, solar, and wind energy projects offers hope for a cleaner and more resilient future. Compared to regional counterparts like India, Bangladesh, and Sri Lanka, Pakistan must intensify its efforts in securing investments and implementing long-term policies to stay competitive.

If effectively executed, the government’s renewable energy initiatives could transform Pakistan’s energy landscape, reducing carbon emissions, stabilising energy costs, and enhancing climate resilience for future generations.


The writer is a media and communications expert at the Pakistan Institute of Development Economics (PIDE). He can be reached at: mqaisar@pide.org.pk