By Nazifa Butt, Director Climate Action and Sustainability
Across Pakistan, a fundamental energy shift is underway. But the real question is no longer whether this transition is happening – it is who is actually driving it. Is it policy, planning, or long-term climate frameworks? Or is it rapid economic pressure, technological affordability, and everyday consumer decisions?
The answer increasingly points to the latter.
This change is not being driven mainly by government policy or large-scale planning. Instead, it is coming from ordinary people. Faced with rising electricity costs, frequent power outages, and increasing climate disasters, millions of Pakistanis are finding their own solutions. Across cities like Lahore and Karachi, rooftop solar panels are becoming common. In urban areas, electric rickshaws are replacing older diesel ones. Farmers are switching from expensive diesel water pumps to solar-powered systems. This is not just about going green, it is about survival. And now, this shift is beginning to influence Pakistan’s foreign policy in important ways.
Pakistan produces less than 1% of global greenhouse gas emissions, yet it is one of the countries most affected by climate change. The devastating floods of 2022 affected one-third of the country. Similar flooding in 2025 caused more damage. Heatwaves now often push temperatures above 50°C. Glaciers in the north are melting faster every year. Because of this, people are not waiting for long-term policies to be implemented. They are adapting quickly. When electricity prices increased by over 150% and subsidies were reduced, households and businesses started installing solar systems. In 2024, Pakistan became one of the largest importers of solar panels in the world.
Today, solar energy is estimated to provide about 20–25% of Pakistan’s electricity when off-grid systems are included. This has had a big economic impact. Between 2022 and 2024, the country’s oil and gas import bill dropped by around 40%, saving more than $12 billion by early 2026. These savings are crucial for a country that often struggles with foreign exchange shortages. For many years, Pakistan’s dependence on imported fossil fuels has limited its foreign policy choices. A large portion of the country’s foreign exchange reserves was spent on buying oil and gas. This made Pakistan vulnerable to global price changes and political pressure from supplier countries. Events like the Russia-Ukraine war and instability in the Gulf region have shown how quickly energy prices can rise.
When this happens, countries like Pakistan face serious economic pressure.
Now, the shift toward solar energy and electric transport is slowly reducing this dependence. Even a partial reduction in fuel imports gives Pakistan more economic stability. In foreign policy terms, this means more freedom. A country that depends less on imported energy has more space to make independent decisions without worrying about energy supply risks.
Pakistan has long highlighted its climate vulnerability in global forums like Conference of the Parties (COP). It has strongly argued for climate justice, loss and damage funding, and support for adaptation. These arguments are valid and widely recognized. However, there has sometimes been a gap between what Pakistan says internationally and what it does domestically. This is where the current energy shift offers a new opportunity.
Pakistan’s updated Nationally Determined Contributions (NDCs) under the Paris Agreement aim to reduce projected emissions by up to 50% by 2030, with 15% coming from domestic resources and 35% dependent on international support. The country has also set a target of generating around 60% of its electricity from renewable sources by 2030 and shifting 30% of vehicles to electric. The reality on the ground is already moving in that direction. The rapid growth of solar energy and electric vehicles shows that change is happening faster than expected. For example, electric vehicle numbers grew from just over 500 in 2021 to more than 80,000 by mid-2025, with sales increasing by over 190% in 2025 alone.
This gives Pakistan a stronger position in climate diplomacy. Instead of only asking for help, it can show real progress. This makes its case for climate finance more convincing because it demonstrates that the country is already taking action.
Despite this progress, there are still major challenges. The biggest issue is the lack of clear and consistent policy. Net metering rules for solar energy are uncertain. Grid systems are not fully prepared to handle large amounts of distributed solar power. Electric vehicle charging infrastructure is still limited.
Another important issue is inequality. Wealthier households and businesses can afford solar panels and benefit from lower energy costs. However, low-income families and small farmers often cannot afford the initial investment. This creates a risk that the energy transition will leave behind those who need it the most. This matters for foreign policy as well. If the transition is not inclusive, Pakistan’s argument for international support becomes weaker. But if the country can show that its clean energy shift benefits all segments of society, it strengthens its position in global negotiations.
The theme of Earth Day 2026, “Our Power, Our Planet,” fits Pakistan’s situation very well. The power to change the energy system is already being used by ordinary people. The challenge now is for policymakers to recognize this and build on it.
Pakistan needs to update its NDC targets to reflect the real progress happening on the ground. It should use its growing energy independence to support a more confident and flexible foreign policy. This energy transition did not start as a strategic plan. It started as millions of small decisions made by individuals trying to cope with rising costs and climate stress. But together, these decisions are changing Pakistan’s position in the world.
The transition is already happening. The question is whether policy will catch up in time to make the most of it.
