By Muhammad Anwar
The global conversation on climate change is increasingly shifting from diagnosis to solutions. Among these, green energy stands out as the most practical and immediate pathway. For Pakistan, transitioning to a sustainable energy model is no longer merely an environmental choice or a luxury of the developed world; it has become a fundamental economic necessity. The country’s growing energy demand, a staggering fuel import bill, and an inherent vulnerability to global geopolitical shocks make renewable energy, particularly solar, central to its future survival and prosperity.
Recent global developments reinforce this direction, providing a roadmap for what is possible when policy aligns with natural potential. Denmark stands as one of the world’s leading examples of a successful energy transition. Today, it generates over 90 percent of its electricity from renewable sources, primarily wind, with solar playing an increasing role. On particularly windy days, the country even produces enough clean electricity to meet all its demand and export surplus power to neighboring countries. This progress is not accidental; it is the result of decades of consistent policy, aggressive investment in technology, strong grid integration, and regional cooperation. Similarly, Germany has expanded its share of renewables beyond 40 percent, while China leads globally in solar capacity. Even our neighbor, India, has made rapid progress, surpassing 70 gigawatts of installed solar capacity. These examples demonstrate that large-scale energy transitions are not only possible but are already fundamentally reshaping global economies.
Pakistan stands at a critical crossroads. Despite possessing some of the highest solar irradiation levels in the world and powerful wind corridors, the national energy mix remains dangerously tethered to fossil fuels. As of early 2026, thermal sources, including imported coal, LNG, and oil, account for approximately 66 percent of electricity generation. While hydropower contributes significantly during the peak summer months, its share often drops to around 10 percent in winter due to reduced water flows. Notably, nuclear energy has emerged as a vital stabilizer, providing roughly 17.5 percent of the base load at the most economical rates available to the grid.
Currently, grid-connected solar and wind energy account for roughly 5 percent of the official mix. However, this figure does not tell the full story. When rooftop solar installations and off-grid systems are included, solar’s actual contribution to Pakistan’s energy needs is estimated to reach between 8 and 12 percent. This reflects a massive, decentralized movement driven by citizens and businesses seeking relief from high tariffs, yet it remains a largely underestimated factor in official policy planning.
The economic implications of this imbalance are severe. Pakistan spends billions of dollars annually on fuel imports to sustain its energy needs, straining foreign exchange reserves and exposing the entire economy to global price volatility. Every time regional tensions flare or global supply routes are constrained, the cost of lighting a home in Karachi or powering a factory in Faisalabad skyrockets. Renewable energy, particularly solar, acts as a critical buffer against these external shocks. The cost disparity is now impossible to ignore: while nuclear energy remains the cheapest indigenous source at approximately Rs 2.62 per unit, RLNG-based generation has reached roughly Rs 19.93 per unit. Each unit of electricity generated by a solar panel does not require the use of precious foreign exchange.
Pakistan’s geographic advantage further reinforces the case for a solar revolution. The country receives sunlight for nearly 300 days a year, with high solar irradiation levels across almost every province. Similarly, the wind corridors in Sindh, particularly in Jhimpir and Gharo, offer substantial untapped potential. Yet, despite these natural gifts, renewable energy remains underutilized due to structural constraints within our existing energy system. Long-term agreements with conventional power producers require fixed “capacity payments,” which must be paid regardless of whether the electricity is actually consumed. As more consumers shift toward self-generated solar energy, these financial obligations place immense pressure on the state, leading to a paradoxical resistance toward renewable expansion.
This tension is visible in recent policy shifts, such as the reduction in net-metering buyback rates, which has discouraged many potential solar users. While these measures might be intended to manage short-term fiscal pressures, they risk sabotaging the country’s long-term sustainability goals. At a time when solar energy is actively reducing the national import bill and stabilizing the economy, sending contradictory signals to the market is counterproductive.
Instead of slowing the transition, our policy direction must focus on integrating renewables more effectively into a modern grid. This requires a comprehensive and coordinated approach in which green energy is treated as a central pillar of economic policy, not merely a secondary environmental concern. Grid modernization is essential; we must invest in transmission infrastructure, smart grid systems, and large-scale energy storage solutions to handle the variability of wind and solar. Without these investments, even our current renewable capacity cannot be fully utilized.
Furthermore, there is a transformative opportunity in the rural and agricultural sectors. Solar-powered irrigation systems can free farmers from rising diesel costs, lower input costs, and improve national food security. In remote communities, off-grid solar solutions can provide reliable electricity for the first time, supporting education, healthcare, and local entrepreneurship. The private sector has already shown a hunger for solar energy; with clear regulatory signals and expanded “green financing” from financial institutions, this momentum can be accelerated to a national scale.
Green energy is about more than just reducing carbon emissions. It is about economic stability, energy security, and ultimately, national independence. Our current reliance on imported fuels leaves us vulnerable, while renewable energy offers a pathway toward resilience and self-reliance. The data is clear: increasing Solar’s total share to 20 percent in the coming years would fundamentally transform Pakistan’s energy landscape and save the national exchequer billions.
The global transition is already underway, and the question is no longer whether Pakistan can adopt renewable energy, but how quickly we can scale it to save our economy. With our abundant natural resources and growing public awareness, we are well-positioned to lead this change. The time for gradual, incremental change has passed. What we require now is decisive policy direction, institutional alignment, and sustained investment. By placing solar and other renewable sources at the heart of our national strategy, Pakistan can turn its current energy crisis into an opportunity for long-term growth, resilience, and lasting prosperity.
Muhammad Anwar is a development professional and CEO of Freedom Gate Prosperity with over three decades of experience in governance and civic engagement. He is a regular writer on public policy and social issues, and a social entrepreneur committed to peace, democratic values, and sustainable development in Pakistan.
