Energy Self-Reliance
Energy Self-Reliance: Pakistan is increasing electricity production from its own resources. This change is positive for a country that depended heavily on imported fuels in the past. That dependence made Pakistan vulnerable to global energy price shocks. Power Minister Awais Leghari said that almost three-quarters of Pakistan’s electricity now comes from local sources. The government wants to increase this share to more than 96 percent by 2034. A major reason for this progress is a “people-led solar revolution.” Many households and businesses now install solar panels. Earlier government investments in nuclear power, hydropower, and local coal also helped increase energy independence.
Energy Price Crisis
For many years, Pakistan’s power sector struggled with expensive fuel imports. Electricity prices kept rising and power shortages occurred often. Global events also affected the economy. For example, energy prices increased after the Russian invasion of Ukraine. As a result, inflation in Pakistan rose to almost 40 percent. The country also lost a large amount of foreign exchange reserves. If Pakistan continues using local energy sources, it can strengthen its energy security.
Power Sector Challenges
However, several problems still exist in the power sector. Electricity prices remain high. Power outages continue in many areas. The system also faces electricity theft, technical losses, and circular debt. The shift to local electricity has not solved these issues yet.
Rooftop solar installations have increased rapidly. Pakistan has about 20,000 megawatts of rooftop solar capacity. More than 12,000 megawatts operate “behind the meter.” This means consumers use most of the electricity themselves. They do not send it to the national grid. Because of this, daytime demand from the grid has dropped sharply.
Solar Policy Impact
Solar power helps people who install it. It lowers their electricity costs and reduces outages. However, it creates financial problems for the national power system. The grid now has extra generation capacity at certain times. This situation increases costs for the system. The burden often falls on consumers who still rely on grid electricity.
The government recently replaced net-metering with a net-billing system for rooftop solar. This change may encourage people to use solar power mainly for their own needs. Many consumers may avoid sending extra electricity to the grid. Instead, they will design systems to reduce outages and avoid high electricity prices.
Power System Reform
In the end, Pakistan must do more than produce electricity from local sources. The country must also improve how the power system delivers electricity to consumers. The government should also create policies that bring off-grid consumers back to the national electricity system.
Published in Dawn,16th March 2026
