A high-level discussion on the energy transition landscape in Pakistan took place at the Regional Climate Foundation Hub, hosted by Dr. Khalid Walid from the Sustainable Development Policy Institute (SDPI).
The experts from the region and beyond shared insights on the complex challenges and opportunities surrounding renewable energy (RE) adoption, decarbonization, and economic transformation.
Prime Minister’s Coordinator for Climate Change, Romina Khurshid Alam said that equitable access to climate finance is critical for the most impacted communities, framing climate resilience and energy transition as collective global efforts.
Dr. Khalid Walid highlighted the significance of Pakistan’s indigenous coal reserves in Thar, noting their comparative potential with the Middle East’s fossil fuel reserves. He pointed out that 100% income tax exemptions for workers in coal mining can serve as a “carrot” solution for energy transition, while emphasizing that Pakistan’s energy narrative needs a competitive angle leveraging these reserves.
With massive rooftop solar expansion underway, Dr. Walid acknowledged inefficiencies due to imported coal reliance, idle power plants incurring capacity charges, and the underutilization of the wind corridor in Thatta. He underscored the necessity for sector coupling and proposed installing hydrogen facilities to attract Chinese investment.
Dr. Walid expressed the challenges in transitioning fiscal benefits from coal to renewables, citing the complexities of Pakistan’s political economy. He called for collaborative leadership from political and private sectors to engage the public on a fair energy transition.
Zainab Naeem, Associate Research Fellow at SDPI, underlined the shared potentials of South Asia and MENA regions, including human resources and RE potential, despite constraints in financing and technical capacity. Ms. Naeem called for regional diplomacy, knowledge sharing, and South-to-South cooperation, particularly with African nations. She stressed the importance of integrating circular economy principles to decarbonize hard-to-abate sectors like steel and cement.
Dr. Tottiana from the EU contextualized the challenge of high carbon pricing in Europe versus developing countries. She emphasized the urgent need to phase out coal, strengthen national grids, and increase political will for fossil fuel phase-out.
Experts from Indonesia and South Africa echoed the need for just energy transition partnerships, while urging inclusive community engagement. Sauleha Qureshi from SDPI noted Pakistan’s data constraints, particularly in sectors like textiles, which need enhanced compliance capabilities for international carbon regulations.
Isabella from the Tara Climate Foundation extended a vote of thanks, noting the potential for community-centric renewable energy initiatives in Pakistan and Indonesia’s labor-intensive industrial sectors.
