Page 31 - CMA Journal (Nov-Dec 2025)

Focus Section

In addition, there has been a significant increase in Green Innovation Initiatives
off-grid and behind-the-meter solar PV systems. In 2024,
Pakistan imported about 17 GW of solar modules from Some efforts are in progress, for example, the
China; almost 11–12 GW of these were off-grid and establishment of the Green Tech Hub (G-TH) at the
behind-the-meter (Malik, 2025). From July 2024 to March National University of Sciences and Technology (NUST) to
2025, another 12.7 GW of solar PV modules were support green technology startups and innovations
imported. This is enormous given the country's existing (NUST, 2024); completion of resource assessment, turbine
total installed capacity of 46.6 GW (ET, 2025). Solar PV has siting, and design for a 200 MW hybrid project by SGS
increased access and minimized the tariff burden for (SGS, 2025); K-Electric successfully showcased market
innovation in green energy by launching a hybrid project
those who can afford it. Its influx and an increase in NM
capacity have diversified the installed capacity mix. (solar and wind energy) (Energy Update, 2024); and
K-Electric's Energy Progress and Innovation Challenge
Moreover, increasing adoption of solar at the grassroots 2025, which intends to promote localized innovation
level (off-grid and behind-the-meter) is also a positive
(Rizvi, 2025). The Ministry of Science and Technology
sign. In other words, green technology adoption has recently inaugurated a PV Modules Testing Laboratory in
increased, but significant structural and institutional
collaboration with Korea to ensure PV quality in line with
weaknesses remain, particularly in policy, infrastructure, international standards (PID, 2025).
innovation capacity, local production, and the
investment environment. Grid challenges have also Barriers to Green Technology
increased. These factors are responsible for lowering
1) Technological Constraints - Expenditure on R&D
Pakistan's global ranking in transition readiness. has remained extremely low in Pakistan (0.3% of
Localization of green energy technology is a worrying GDP) compared to its regional competitors (Rizvi,
problem. The industry mostly assembles mounting 2025). Labs supporting research in battery storage,
structures, and depends on imports for solar panels, PV power electronics, smart grids, or renewable
resource modeling are either absent or inadequate
cells, wind turbines, inverters, and battery storage. This
dependence has made green technology adoption at universities. The industry-academia disconnect
has led to research that hardly serves a commercial
expensive and susceptible to fluctuations in the rupee's
value, weakening long-term sustainability and increasing purpose.
the risk of disruptions in the supply chain. The local The Alternative and Renewable Energy Policy
industry has been unable to compete with imports; announced in 2019 did supported local manufactur-
insufficient advanced equipment and skilled labor are ing, but weaknesses on the implementation side,
the major constraints. These deficiencies sometimes along with insufficient R&D expenditure by the
result in defective products. The key to improvement is government, have impeded progress. The shutdown
the transfer of technology and expertise to Pakistan, of the Pakistan Council of Renewable Energy
Technologies; the underutilization of SEZs under
which has remained limited (Memon, 2025).
CPEC; ineffective technology transfer agreements,
The current grid infrastructure is not ready for have all deterred innovation (Memon, 2025).
integrating renewables. As the number of NM
consumers has increased, the reverse flow issues in 2) Limited Finance - Green projects have high upfront
costs and low and riskier returns; tight liquidity and
Distribution companies (DISCOs) also increased. the financial sector's preference for conventional
Hosting Capacity Analysis and a transformer monitoring
thermal energy projects are the reasons behind the
system are absent in these DISCOs. Globally, investment limited financing for innovation and technology.
in grid infrastructure touched $390 billion in CY2024
Venture capital investment in green technology is
and is expected to exceed $400 billion in CY2025 (20% also low; the green bond market is underdeveloped
above the past decade). However, financial constraints and import restrictions have made it more expensive
have impeded utilities from investing in grid upgrades to adopt this technology.
(Malik, 2025).
3) Inconsistent Policy and Governance - Some recent
Integrating intermittent renewable energy into developments on the regulatory and policy front,
Pakistan's grid requires improvements in grid such as renegotiations and terminations of power
management, energy storage, forecasting, regulatory purchase agreements, ambiguities about the NM
frameworks, and human capacity development. For policy, and fear of abrupt tariff adjustments, have
years, the grid has suffered from high system losses, discouraged investors. Inconsistencies in policy and
reliance on inefficient thermal power, and inadequate regulations are a significant impediment to
financial discipline. All these factors are delaying the shift innovation in Pakistan. Bureaucratic procedures are
to greener energy. Moreover, installed renewable delaying pilot projects and approvals for green
capacity often underperforms due to transmission technologies. The existing utility staff and other
bottlenecks and scheduling challenges. relevant personnel have little experience with green
technologies.

ICMA’s Chartered Management Accountant, Nov-Dec 2025 29