Pakistan does not face any serious limitations in the choice of new technologies or their deployment. It must reflect the new market realities—small, distributed, and renewable—in its policies and plans. Treading the traditional path—centralised supply, transportation, and distribution systems, albeit at slightly greater efficiency and with a small share of renewables—would be financially suicidal.
Pakistan needs a new strategic energy vision from its political leaders and a strong belief in that vision. It must have at least the following strategic strands.
This includes the deployment of clean, renewable, modular, and sustainable technologies dispersed around the country. It also requires the development and deployment of energy storage technologies, particularly those based on pumped-hydro and compressed-air storage concepts.
There must be a gradual shift of fuel-based transport towards renewable-derived electricity, along with the development of complementary charging infrastructure and facilities. In parallel, the country should pursue the production of alternative fuels from sustainable energy resources, particularly hydrogen.
The electrification of as many industrial processes as practicable is essential, alongside the elimination of any cross-subsidies by industrial consumers to other consumer categories. At the same time, Pakistan should interconnect its electric grid with those of its neighbours to benefit from reserve capacity sharing, economic trade, and to manage the uncertainty and variability of solar and wind generation.
A reduction in the country’s energy intensity, particularly in industry, is also critical. This can be achieved through energy conservation, efficiency improvements, and fuel switching. Furthermore, the country must build a flexible, modular, and enabling energy transportation and delivery system, primarily through an intelligent and smart electric grid.
Strengthening existing and building additional R&D capacity is vital to inform energy-related policy, decision-making, and planning. Equally important is the reinforcement and unification of energy-related data collection, with the creation of a national databank that is easily accessible to academics, researchers, planners, and investors.
There is nothing novel in the above list. Our leaders may already be aware of these global trends and the options before them. The real and critical issue, however, is how quickly and effectively we can implement them on the ground. The following enabling and complementary efforts will help manage the desired transition.
It would be beneficial to consolidate existing data collection and repository practices into a single entity, such as the Pakistan Bureau of Statistics, to ensure consistency, accuracy, and uniformity
The transition to distributed energy supply and delivery systems—particularly those based on renewable resources—should be prioritised. This will enhance the “security” of energy supplies by reducing risks of sabotage and terrorism generally associated with mega projects. It will also contribute to energy “sustainability” through reliance on natural energy flows and technologies, including skills and support that can be developed domestically.
An umbrella legal framework must be provided to steer and guide this transition. Such a framework should lay down national strategic priorities and establish ground rules to encourage schemes aligned with the country’s energy vision. Future decisions must not be based solely on least cost in any single subsector, but on a broader value-addition perspective, including security (national and cyber), affordability, and sustainability.
The existing energy policy formulation process should be critically reviewed and made transparent, objective, and consultative. Pakistan does not suffer from a lack of policies, but from having too many—most of which are disjointed, fragmented, and inconsistent, often at odds with one another. Energy policy must be integrated not only within the sector but also with other sectors of the economy.
Efforts should aim to establish a clear hierarchy among policies, from overarching national strategies down to local frameworks. Consistency across major sectors must be ensured, along with long-term policy stability.
A concrete roadmap is needed to define the ultimate shape and structure of the energy sector. This roadmap should clearly outline the various building blocks and how they interconnect, while setting out clear, concrete, and time-bound strategies to achieve national objectives.
There must be a shift from the present “top-down” approach to a “bottom-up” model of energy planning and development. Policymakers and planners should aim to meet future energy demand at the point of end use, preferably from nearby sources.
The institutional structure of the energy sector, which has become dysfunctional, must be recast. Pakistan requires a system that is lean, agile, organic, and responsive to evolving market trends. This may involve merging existing entities into a new body—such as a National Energy Commission (NEC)—entrusted with strategic planning, policy formulation, and regulation.
A strong domestic modelling capacity should be developed, preferably within this new entity, to regularly assess global trends, emerging threats, and their implications over different time horizons. Local planning capacity for efficient, clean, and renewable energy systems will be essential.
This requires the acquisition of appropriate planning and design tools, along with comprehensive databases, enabling a cradle-to-grave approach in evaluating the viability of new options on both the supply and demand sides.
Suitable financial mechanisms must be devised to encourage investment in small-scale and distributed energy systems, as well as demand management projects that may otherwise appear high-risk or unattractive to private investors. Public utilities could play a role in covering or sharing initial costs, with gradual recovery through consumer billing.
A supportive R&D ecosystem, developed in collaboration with universities and research centres, is also essential. These programmes should explore the feasibility of various energy strategies, identify barriers, propose solutions, and evaluate cost-effectiveness.
The development of a comprehensive and centralised national databank is critical. This should include accurate and realistic data on the rapidly growing adoption of renewable technologies, including solar and wind, whether standalone or grid-connected.
It would be beneficial to consolidate existing data collection and repository practices into a single entity, such as the Pakistan Bureau of Statistics, to ensure consistency, accuracy, and uniformity.
A recent study by Renewables First—a local think tank focused on energy and environmental challenges—revealed that the rapid growth of distributed and behind-the-meter photovoltaic installations is not adequately reflected in current reporting systems. The study estimates that these installations generated approximately 19,000 GWh, accounting for nearly 14% of Pakistan’s gross electricity generation last year.
This represents a serious gap that must be urgently addressed. Reliable and accurate data is fundamental to effective policy formulation, decision-making, and planning. To this end, Pakistan’s data custodians could adopt established guidelines from institutions such as the IEA or the Latin American Energy Organization (OLADE).
While new threats continue to emerge within and around our borders, new opportunities are also arising that can help reduce dependence on imported fossil fuels. Pakistan must be prepared to reassess its energy security challenges regularly, recognising their critical link to national security and sovereignty.
As Thomas Jefferson aptly remarked, “The price of liberty is eternal vigilance.” Pakistan must be willing to pay this price.