2025/11/14 by Sun, Yixian, Sharif, Muhammad Faisal, Naeem, Ayesha +2 · 1 voice
paper · doi:10.15125/bathro-378187016
openalex publication_date 2025/11/14 · openalex created_date 2025/11/15 · openalex updated_date 2026/07/08
Pakistan’s energy landscape is undergoing a transformation driven by the rapid<br/>uptake of imported solar photovoltaic (PV) systems: as of mid-2025, solar is<br/>expected to contribute over 25% of Pakistan’s power supply (including off-grid<br/>solar generation), surpassing the share of any single fossil fuel and becoming<br/>the second-largest source of generation after hydropower in Pakistan’s energy<br/>mix. However, this solar boom has not benefitted all citizens equally. The<br/>installation of solar systems under net metering remains unaffordable for lowincome<br/>families. The shift to rooftop solar has also reduced demand from the<br/>national grid, which has led to revenue losses for public-sector distribution<br/>companies, increased the financial burden on consumers who rely solely on<br/>grid supply, and posed challenges to overall grid stability. In recent years,<br/>the country has spent over USD 4 billion on imported solar equipment as<br/>it heavily relies on foreign manufacturers, particularly Chinese firms, without<br/>giving sufficient attention to developing local solar manufacturing capacity.<br/>This policy report advocates the localization of solar manufacturing to reduce<br/>import dependence, create jobs, and improve energy security. It explores<br/>key opportunities and challenges in developing a local solar PV value<br/>chain, including the use of special economic zones (SEZs), the provision of<br/>financial incentives, and the establishment of joint ventures with Chinese<br/>manufacturers under the China-Pakistan Economic Corridor. We propose a<br/>“5S” (Strategy, Subsidy, Standards, SEZs, Science & Knowledge) roadmap to<br/>foster a competitive solar industry in Pakistan.