Pakistan’s gradual transition toward domestic sources of electricity marks a turning point in the country’s energy landscape. For decades, dependence on imported fuels left the economy vulnerable to global price shocks, foreign exchange pressures, and recurring shortages. Now, with nearly three-quarters of electricity generation coming from indigenous resources, and the government aiming for more than 96 percent by 2034, the shift represents a significant stride toward energy security. Power Minister Awais Leghari has described this transformation as a “people-led solar revolution,” underscoring the role of households and communities in reshaping the sector.

Early investments in nuclear power, hydropower, and local coal also laid the foundation for this transition. These decisions helped reduce reliance on imported oil and gas, which for years kept tariffs high and exposed the economy to external volatility. The crisis following Russia’s invasion of Ukraine highlighted the dangers of this dependence, as soaring global energy prices drove inflation close to 40 percent and drained foreign reserves. By strengthening domestic generation, Pakistan is better positioned to shield itself from such shocks in the future.

Yet, the challenges facing the power sector remain complex. While the reliance on local resources has increased, structural issues such as unaffordable tariffs, frequent outages, system losses, theft, and the burden of circular debt continue to weigh heavily on consumers and the economy. In fact, the rapid growth of rooftop solar installations—estimated at more than 12,000 MW out of 20,000 MW—has created new complications. Daytime demand from the national grid has fallen sharply, leaving surplus generation capacity underutilized and worsening the financial strain on the system.

The government’s recent decision to replace net-metering with net-billing is expected to accelerate behind-the-meter solar adoption. Consumers are increasingly optimizing systems for self-consumption rather than exporting surplus electricity to the grid, given the limited incentives. While this empowers households to reduce dependence on the grid, it also deepens the financial imbalance for those who remain reliant on conventional supply. The sustainability of the transition will therefore depend not only on the sources of electricity Pakistan produces but also on how effectively the system delivers power to consumers and how policies address the growing divide between grid-connected and off-grid users.

The broader lesson is that energy self-reliance cannot be measured solely by generation figures. It requires a holistic approach that ensures affordability, reliability, and financial sustainability across the supply chain. Pakistan’s progress in boosting domestic generation is commendable, but without reforms to address circular debt, improve transmission efficiency, and incentivize balanced participation in the grid, the sector risks remaining unstable.

The promise of self-reliance lies in combining indigenous generation with sound governance. If Pakistan can align its policies to strengthen both supply and delivery, the country will not only secure its energy future but also provide a more resilient foundation for economic growth. In an era of global uncertainty, building a power system that is both locally anchored and financially sustainable is essential for national stability and prosperity.