Pakistan Sets Target of 95% Renewable Electricity by 2040

Pakistan aims to generate 95% of its electricity from renewable sources by 2040, while achieving a 60% clean energy share by 2030, according to an official document outlining the country’s long-term energy transition strategy.

The document, available with Wealth Pakistan, sets out an ambitious roadmap to transform Pakistan into a majority-renewable energy economy by 2050, powering industry, households, and transport with clean and affordable energy. As part of this transition, the country plans to raise renewable electricity generation to 50% by 2035 and phase out or convert 14,000 megawatts of fossil fuel-based power plants by the same year.

It also targets a sharp reduction in transmission and distribution losses from 19% to 8%, alongside achieving 100% electricity access across the country. The plan further includes installing rooftop solar systems in all government secondary schools by 2035 and investing in small businesses and entrepreneurs to promote job creation and skill development in solar, wind, and hydrogen technologies.

The document highlights that although Pakistan contributes only about 1% to global greenhouse gas emissions and has per-capita emissions of 2.3 tons of CO2 equivalent, it continues to face significant economic pressure due to reliance on imported fossil fuels. This dependence has strained foreign exchange reserves, widened the balance of payments gap, and contributed to a circular debt exceeding Rs1.66 trillion in the power sector.

It notes that volatile global fuel prices and currency fluctuations have driven up electricity generation costs, resulting in higher consumer tariffs and financial inefficiencies, including payments for underutilized capacity.

The shift to indigenous renewable energy sources such as solar, wind, hydro, and biomass is seen as critical to reducing import dependence, lowering power costs, and improving energy security, while also cutting emissions and air pollution.

According to the document, investment in large-scale renewable projects, energy storage systems, and grid modernization will be essential to support this transition and ensure system reliability, particularly as the country moves toward electrification of transport.

Citing an April 2025 report, the document notes that Pakistan imported 17 gigawatts of solar power systems in 2024, double the previous year, making it the world’s third-largest importer of solar panels, driven by rising electricity tariffs and declining panel prices.