By Irfan Haroon.
The world is passing through an era in which energy is no longer merely a symbol of development; it has become the backbone of economic stability, industrial growth, environmental protection, and national sovereignty. The progress of every nation today depends largely on how effectively it can meet its energy demands through
affordable, sustainable, and secure sources. Unfortunately, Pakistan remains trapped in an expensive, import-dependent power structure that continues to burden both the public and the national economy.
Across the globe, renewable energy is rapidly replacing conventional fossil fuels.
According to the International Energy Agency (IEA), nearly 80 percent of newly installed global power capacity by 2025 came from renewable sources. Solar energy alone has now crossed the milestone of 2 terawatts in worldwide installed capacity, while China, the United States, Europe, and India are leading this global transition.
Energy experts predict that by 2030, nearly half of the world’s new electricity generation will come from solar and wind power.
Solar energy has already emerged as one of the cheapest sources of electricity in the world. The International Renewable Energy Agency (IRENA) reports that the cost of solar power has fallen by nearly 85 percent over the past decade. What was once considered an expensive technology in 2010 has now become cheaper than coal
and furnace oil in many countries. As a result, solar panels are increasingly being installed in homes, factories, farms, educational institutions, and government buildings around the world.
The United States added approximately 43 gigawatts of new solar capacity during 2025 alone, accounting for nearly 54 percent of all newly added electricity generation in the country. More than five million American homes are now equipped with solar systems. The U.S. government estimates that by 2035, nearly 40 percent of the
nation’s electricity could come from solar energy. This transition has not only reduced electricity costs but also generated millions of employment opportunities. Today, nearly half a million people are directly employed in the American solar industry.
China, meanwhile, dominates the global solar market by producing almost 80 percent of the world’s solar panels. By 2025, China’s solar power generation capacity had exceeded 900 gigawatts, greater than the total electricity production capacity of many countries combined. Several Chinese cities have already made solar systems mandatory for new buildings. Through this policy, China has not only achieved energy self-reliance but has also earned billions of dollars through the export of affordable solar technology to the rest of the world.
Germany provides another powerful example through its ambitious “Energiewende” policy, under which renewable energy became a national priority. Today, nearly 52 percent of Germany’s electricity comes from renewable sources. Millions of German citizens generate their own electricity by installing solar panels on rooftops. The government supports this transition through low-interest loans, subsidies, and tax incentives aimed at encouraging clean energy adoption.
India is also advancing rapidly in the renewable energy sector. The country has set a target of achieving 500 gigawatts of renewable energy capacity by 2030. Through its rooftop solar schemes, the Indian government has provided subsidies of up to 40 percent for residential consumers. India’s solar capacity has now crossed 100
gigawatts, and many rural regions have already shifted schools, hospitals, and agricultural tube wells entirely to solar energy.
Perhaps the most inspiring regional example is Bangladesh. Despite limited resources, the country successfully transformed rural electrification through solar home systems. In collaboration with the World Bank and local institutions such as IDCOL, Bangladesh installed more than 4.1 million solar home systems, benefiting
nearly 20 million people. Millions of rural families gained access to electricity for the first time, while the country also reduced annual carbon emissions by hundreds of thousands of tons. Equally important, the initiative eased pressure on the national grid and enabled industries to receive more reliable electricity supplies.
In sharp contrast, Pakistan’s energy situation remains deeply concerning. Although the country’s installed electricity generation capacity exceeds 46,000 megawatts, actual production often remains significantly lower. Despite this, load-shedding, power shortages, and soaring electricity prices have become routine realities for
ordinary citizens and businesses alike. Pakistan also loses nearly 16 to 18 percent of its electricity through transmission and distribution inefficiencies, causing losses worth billions of rupees annually.
Pakistan’s circular debt has now surpassed Rs. 2.6 trillion, posing a serious threat to the national economy. Under agreements signed with Independent Power Producers (IPPs), the government is required to make massive capacity payments regardless of whether electricity is consumed or not. Consequently, electricity tariffs continue to rise, placing a direct financial burden on consumers and industries.
In many parts of Pakistan, the average electricity price has reached nearly Rs. 60 per unit, while industrial electricity rates remain far higher than those in competing regional economies. This has significantly weakened the competitiveness of Pakistani industries in international markets. In comparison, countries such as Bangladesh and India have strengthened their textile and export sectors by ensuring relatively affordable electricity for manufacturers.
Ironically, while official policies remain inconsistent, the people of Pakistan themselves are driving a quiet solar revolution. During 2024 and 2025 alone, thousands of megawatts worth of solar panels were imported into the country. Major cities including Karachi, Lahore, Islamabad, Hyderabad, and Faisalabad are witnessing a rapid increase in solar installations across homes, factories, shops, hospitals, and educational institutions.
Yet a troubling contradiction persists. Although solar technology is becoming cheaper globally, solar systems in Pakistan are becoming increasingly expensive due to import duties, sales taxes, cu rrency depreciation, policy instability, rising dollar exchange rates, and the absence of large-scale local manufacturing. A standard 5-
kilowatt residential solar system, which was relatively affordable just a few years ago, is now moving beyond the reach of many middle-class families.
Pakistan’s net metering policy initially encouraged widespread adoption of solar energy by allowing consumers to sell excess electricity back to the national grid.
However, recent uncertainty and proposed changes in net metering regulations have created concerns among both consumers and investors. Energy experts believe that if the government strengthens and stabilizes the net metering framework, the growth of solar energy in Pakistan could accelerate dramatically.
One of Pakistan’s greatest natural advantages is its climate. The country receives nearly 300 sunny days annually, making it highly suitable for solar power generation.
Several areas in Sindh and Balochistan possess solar radiation levels comparable to some of the best solar regions in the world. Similarly, Sindh’s wind corridor alone is estimated to have the capacity to generate nearly 50,000 megawatts of electricity, yet only a small fraction of this enormous potential has been utilized so far.
Renewable energy is not merely a source of electricity; it is a driver of economic growth, employment generation, and environmental sustainability. If Pakistan seriously shifts toward solar, wind, and hydropower on a large scale, the country could save billions of dollars currently spent on imported fuel while simultaneously creating millions of jobs. Such a transition would also significantly reduce air pollution, smog, and carbon emissions.
The global shift toward clean energy is accelerating rapidly. Countries such as China, United States, Germany, India, and Bangladesh made timely decisions that strengthened their economies and improved energy security. Pakistan too possesses abundant sunlight, wind, and water resources. What the country urgently needs is serious long-term planning, interest-free financing for the public, reduced taxes on solar products, encouragement for local manufacturing, and a gradual reduction in dependence on outdated and expensive power plants.
If Pakistan fails to move decisively toward renewable energy today, the country may face an even deeper energy crisis in the coming years. However, with timely and visionary decisions, Pakistan can not only overcome load-shedding and expensive electricity but also lay the foundation for a stronger, self-reliant, and environmentally
sustainable economy.
