ISLAMABAD, May 31: Pakistan plans to generate 95% of its electricity from renewable sources by 2040 as part of a long-term strategy aimed at reducing dependence on imported fuels, lowering power costs and improving energy security.
According to an official energy transition document reviewed by Wealth Pakistan, the country aims to achieve a 60% clean energy share by 2030 and transform into a predominantly renewable-powered economy by 2050. The plan outlines targets for electricity generation, infrastructure upgrades and energy sector reforms intended to support growing demand while reducing emissions.
The strategy calls for increasing renewable electricity generation to 50% by 2035 and phasing out or converting 14,000 megawatts of fossil fuel-based power plants during the same period.
Focus on energy access and grid improvements
The document sets a target of reducing transmission and distribution losses from 19% to 8% while expanding electricity access to the entire population.
It also proposes installing rooftop solar systems in all government secondary schools by 2035 and supporting small businesses and entrepreneurs involved in solar, wind and hydrogen technologies to encourage job creation and skills development.
According to the document, Pakistan contributes about 1% of global greenhouse gas emissions, with per-capita emissions estimated at 2.3 tonnes of carbon dioxide equivalent.
Reducing reliance on imported fuels
The strategy notes that dependence on imported fossil fuels has placed pressure on foreign exchange reserves, widened the balance of payments deficit and contributed to circular debt exceeding Rs1.66 trillion in the power sector.
It states that fluctuations in global fuel prices and exchange rates have increased electricity generation costs, resulting in higher consumer tariffs and payments for underutilised power generation capacity.
Officials view greater use of domestic renewable resources, including solar, wind, hydropower and biomass, as a way to reduce import dependence, strengthen energy security and lower long-term electricity costs.
Investment and sector reforms
The document identifies large-scale renewable energy projects, energy storage systems and grid modernisation as key requirements for maintaining reliability as renewable generation expands and transport becomes increasingly electrified.
It also highlights rapid growth in solar adoption. Citing an April 2025 report, the document states that Pakistan imported 17 gigawatts of solar power systems in 2024, twice the volume imported a year earlier. The increase made Pakistan the world’s third-largest importer of solar panels, driven by rising electricity prices and lower solar equipment costs.
The strategy further recommends renegotiating high-cost power purchase agreements, introducing cost-reflective tariffs and retiring inefficient fossil fuel plants. It states that expanding lower-cost renewable energy capacity could help address circular debt challenges while meeting future electricity demand through cleaner sources.
Also Read: Pakistan Targets 95% Renewable Electricity by 2040 Under Long-Term Energy Transition Plan
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