Page 30 - CMA Journal (Nov-Dec 2025)

Green Technology Pathway for
Focus Section

Pakistan’s Energy Future

Author: Co-Author

Afia Malik Shafqat Hussain
Researcher and Memon
Energy expert
Sustainable Energy
Research and Policy Expert

Economic managers in Pakistan are dealing with a tough fossil fuel consumption (EMBER, 2025; IRENA, 2025). These
set of challenges: heavy reliance on imports and limited green technologies are helping them to achieve their set
foreign exchange reserves are straining the economy; climate goals and transform their economies. The same
rising debt-to-GDP ratio caused by fiscal deficits, high approach should be adopted by Pakistan for energy
interest payments, and currency fluctuations; the security and to steer economic growth.
ongoing 25th IMF program and its conditions are adding Moreover, the energy transition in Pakistan is rolling fast.
pressure; and climate-related vulnerabilities are further Yet, it ranks 101 out of 118 in the World Economic Forum's
complicating matters.
2025 Energy Transition Index. Its ranking is well below
Energy-sector issues are central to these economic and that of regional peers: Bangladesh is at 86, India at 71,
environmental challenges. The country is dependent on Vietnam at 49, Cambodia at 73, and Indonesia at 58. Not
imported fossil fuels. There are governance issues, to mention China, which is at 12. Against the global
technical and non-technical inefficiencies, and a surplus average of 56.9, Pakistan's score is 48.5.
of installed capacity with a capacity payment burden. Pakistan has vast potential for renewable energy sources,
Above all, there is the long-standing issue of circular debt but what is missing is its readiness for the future, which
(PKR 1.7 trillion as of September 2025), which has led to we will discuss in this article.
higher tariffs that consumers ultimately have to shoulder.
Pakistan adds little to global greenhouse gas emissions, Renewable Energy Adoption–Current Status
but it is highly susceptible to climate change. This year, Pakistan has rapidly become one of the world's top 10
the government submitted the third version of solar markets, fueled mainly by market forces and some
Nationally Determined Contributions (NDC 3.0), government policies. Solar photovoltaic (PV) provided
voluntarily promising to cut emissions by up to 50% by about 25.3% of the country's utility-supplied electricity
2035. A window of great opportunity is available for in FY2025. This has made Pakistan one of the few
Pakistan: adopting green energy technologies, such as countries generating over a quarter of its energy from
solar, wind, biogas, green hydrogen, energy storage, and solar sources (Maguire, 2025). An estimate from a study
smart grids, can help the country meet its NDC 3.0 conducted by Renewable First suggests that Solar-PV
targets, provide reliable, affordable energy, and ease
economic burdens. Therefore, charting a green attracted $17 to $19 billion in private investment from
technology pathway is highly imperative for Pakistan’s FY2017 to FY2025 (Ayub, 2025).
energy future. As of September 2025, the government reported that
In the Green Future Index (2023) released by MIT renewable energy sources — hydro, wind, solar, and
Technology Review, which assesses countries across five bagasse — accounted for over 46% of the energy mix,
areas: carbon emissions, energy transformation, a green surpassing this year's target (Energy Update, 2025). Now
society, clean innovation, and climate policies, Pakistan is there are operational wind farms in Sindh and
at the 67th position out of 76 countries, down from 55th Baluchistan, and a growing capacity for net-metering
in 2022 (Memon, 2023). (NM) (on-grid rooftop solar). NM capacity has reached 5.7
gigawatts (GW) as of June 2025, as households and
Countries like China and Denmark are investing in green businesses are increasingly opting for solar PV to
innovations. They are creating new industries, increasing minimize the impact of rising grid tariffs (Malik, 2025).
exports, improving energy security, and lowering their
28 ICMA’s Chartered Management Accountant, Nov-Dec 2025