KARACHI (May 25, 2026) — Pakistan can enter a new phase of capital market development by channeling investments in renewable energy and mineral resources into structured financial instruments, according to a new study released by the Institute of Cost and Management Accountants of Pakistan (ICMA).
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The research, published in ICMA’s Chartered Management Accountant Journal, argues that Pakistan’s expanding solar energy sector and vast mineral reserves can be leveraged to deepen financial markets, mobilize domestic savings, and reduce reliance on external borrowing.
Solar Boom and Energy Savings Highlight Structural Shift
The study notes that Pakistan has imported more than 51 gigawatts of solar capacity since 2018, including around 17 gigawatts in 2024 alone, with total installed solar capacity estimated at 32–34 gigawatts.
It states that this rapid adoption reflects a major structural shift, where households and businesses are increasingly investing directly in productive energy assets.
According to ICMA, solar adoption has generated over $12 billion in savings on oil and LNG imports between 2021 and early 2026, with further savings expected by the end of the year.
Proposal for Green Financial Instruments
The report recommends converting renewable energy cash flows into investable products such as:
- Green bonds
- Infrastructure REITs
- Green sukuk
These instruments, it says, could attract institutional investors while supporting sustainable development and energy transition goals.
Untapped Mineral Wealth and Investment Potential
The study also highlights Pakistan’s vast mineral resources, including:
- 6 billion tons of copper ore
- 1.5 billion tons of iron ore
- Significant gold deposits
Despite this resource base, the mining sector contributes only around 3% to GDP, indicating major untapped potential.
Large-scale projects such as Reko Diq are expected to generate significant export revenue and long-term investment inflows once operational.
New Financial Instruments for Resource Sector
ICMA recommends developing:
- Commodity-linked securities
- Mining investment trusts
- Exchange-traded mineral instruments
It notes that countries such as Chile and Australia have successfully used similar frameworks to strengthen capital markets and attract institutional investment.
Low Market Participation a Key Challenge
The report highlights that retail participation in Pakistan’s capital markets remains below 1% of the population.
It suggests expanding digital investment platforms, improving financial literacy, and linking financial products to tangible assets to increase investor confidence.
Pakistan’s mobile ecosystem, with over 190 million connections, is identified as a major opportunity for scaling digital investment and fractional ownership models.
Shift Toward Asset-Backed Financial System
ICMA concludes that integrating renewable energy and mineral assets into structured financial instruments could shift Pakistan from a debt-driven model to an asset-backed investment system.
Such a transformation, it argues, would strengthen economic resilience, attract ESG-focused global investment, and support long-term sustainable growth.
