Page 32 - CMA Journal (Nov-Dec 2025)

Focus Section

The lack of a clear national innovation agenda has Fourth, the availability of finances is paramount for
led to disjointed efforts by federal and provincial technology transfer and indigenous development.
governments, ministries, regulators, universities, and Global capital is rapidly shifting towards green projects;
private businesses. Pakistan needs to show readiness for innovation through
a cogent strategy and a business plan to attract
4) Structural and Market Challenges - Financial
problems persist in DISCOs and have been doing so concessional finance. A green innovation fund can be a
for years. This is the reason they are showing good option for supporting startups, universities, and
reluctance in the way of the adoption of new research centers.
technologies. The power system is centralized, with The financial industry, especially banks, is a key player in
limited acceptance of distributed generation. the market for green energy projects. However, they are
Consumers currently show little demand for reluctant to participate because of high risks and low
innovation, as there is less awareness about the returns associated with green lending. Experts have
value of energy efficiency and green technology; argued in favor of implementing efficient risk-sharing
customers are embracing solar energy to escape mechanisms and creating formal secondary markets for
higher costs from the energy grid. The absence of green energy products (Jamal, 2024).
widespread certification labs and standards for solar There are several other green financing options, e.g.,
equipment has further undermined quality and green bonds, green sukuks, revolving funds, and
consumer confidence.
specialized models to encourage private investors; they
5) Limited Skilled Professionals - Lack of expertise in require regulatory support from SECP and SBP. There are
AI-enabled grid control systems, renewable energy successful examples of balanced public-private
engineering, energy storage solutions, EV partnerships to learn from, such as the solar home system
infrastructure, and more has impacted innovation in Bangladesh and the Surya Shakti Scheme in India.
capability. Brain drain in engineering and research Pakistan needs more programs like G-TH, with support
talent has diminished innovation. Regulatory from both the government and the private sector;
hurdles, lack of mentorship, and limited incubation international donors should also be approached to help
facilities have constrained entrepreneurship in the grow these initiatives. Pakistan is making progress, but
clean energy sector.
achieving sustainability requires innovation in green
Way Forward technologies suited to domestic conditions; policies
need to evolve to support research and capacity building
The first prerequisite for green energy pathways is to invest for a green transition.
in smart grids along with advanced metering
infrastructure (AMI) and a state-of-the-art Supervisory References
Control and Data Acquisition (SCADA) system at the utility • EMBER (2025). China Energy Transition Review 2025. https://
level. Pakistan’s overall power system needs flexible ember-energy.org/latest-insights/china-energy-transition-review-2025/
transmission systems, real-time data analytics, and battery • Energy Update (2024). K-Electric Secures Lowest Bid for 220MW Hybrid
Wind-Solar Project, Energy Update Magazine, September 25.
storage solutions to maximize the absorption of
• Energy Update (2025). Pakistan Targets 60% Renewable Energy Share by 2030,
renewable energy and to minimize system losses. In National Assembly Informed. Energy Update Magazine, December 06.
parallel, the priority should be to address governance • ET (2025). Pakistan Emerges as One of Region’s Fastest-growing Solar Markets.
inefficiencies. The renewal and implementation of grid The Express Tribune, December 03, 2025.
• IRENA (2025). Renewable energy country profiles. International Renewable
codes is also essential for grid modernization.
Energy Agency, Abu Dhabi.
Second, we need to strengthen our industry. The • Maguire, G. (2025). Pakistan's solar surge lifts it into rarefied 25% club.
https://www.reuters.com/markets/commodities/pakistans-solar-surge-lifts-it-
government should design policies that incentivize into-rarefied-25-club-2025-06-17/
industry to grow, produce high-quality products, and • Malik, A. (2025). Net-metering under pressure. https://www.linkedin.com/
also compete globally. This is the only way to cut imports; pulse/net-metering-under-pressure-afia-malik-f7def/
it will also create jobs in the country. At the same time, • Memon, S.H. (2025). An energy move that’s needed. The News, April 07, 2025.
• NUST (2024).
setting and implementing robust quality standards is
https://www.sgs.com/en-pk/news/2025/07/pioneering-hybrid-renewable-ene
important for building trust in the products made in rgy-in-pakistan-sgs-leads-200-mw-solar-wind-project
Pakistan. Only in this way can we provide better and • PID (2025). MoST and KOICA Launch State-of-the-Art Solar Panel Testing
cheaper options for our consumers and ensure Facility, Islamabad, https://pid.gov.pk/site/press_detail/31243
• Rehan, A. (2025). Pakistan’s solar rush unlocked $17-19bn in private
sustainable economic growth.
investment in 8 years: study - Markets - Business Recorder.
Third, indigenization without innovation is not possible! • Rizvi, J. (2025). Pakistan’s energy future | Political Economy | thenews.com.pk.
• Jamal, N. (2024). https://www.dawn.com/news/1834545.
Develop SEZs with incentives for collaboration between
• Memon, S.H. (2023). Navigating Pakistan’s Energy Transition. Dawn, December
businesses and universities for technology transfer. It is 18, 2023.
equally important to increase government funding for
research and skill development to encourage innovation About the Authors: Afia Malik is a researcher and an energy expert
in renewable energy, energy storage, smart grids, and with more than thirty years of experience at the Pakistan Institute of
clean energy services in universities. Initiatives such as Development Economics, Islamabad.
green skills academies and national technical training Shafqat Hussain Memon is an academic and researcher with over
programs should be established. nine years of experience in sustainable energy research and policy.
30 ICMA’s Chartered Management Accountant, Nov-Dec 2025