BMPP leader calls for greater reliance on renewable energy to strengthen Pakistan’s energy security and reduce dependence on conventional fuels
KARACHI: Khurram Ijaz, General Secretary of Businessmen Panel Progressive (BMPP) and former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has highlighted a significant shift in Pakistan’s energy mix and urged the government to accelerate the adoption of renewable energy to ensure affordable and sustainable electricity for consumers and industry.
Ijaz said that amid ongoing tensions in the Middle East and persistent challenges associated with petroleum-based energy, Pakistan urgently needs viable alternatives to meet the growing demand for affordable electricity.
He said Pakistan’s continued reliance on petroleum and other thermal sources exposes the economy to international energy price volatility, while the rapid expansion of renewable energy, particularly solar power, provides an opportunity to reduce this dependence and improve energy security.
“The changing composition of Pakistan’s installed electricity capacity clearly shows that renewable energy is becoming an increasingly important part of the national energy mix,” Ijaz said.
According to the Economic Survey of Pakistan 2025-26, Pakistan’s total installed electricity generation capacity increased from 45,380 megawatts (MW) in FY2024-25 to 49,651 MW in FY2025-26, representing an increase of 4,271 MW or 9.4%.
The survey showed that thermal power remained the largest component of installed capacity at 24,405 MW, but its share declined from 60.6% to 49.2%.
In contrast, renewable energy capacity increased sharply from 2,782 MW to 10,101 MW during the year, raising its share in total installed capacity from 6.1% to 20.3%.
Ijaz said the rapid expansion of renewable capacity was particularly encouraging, with 7,319 MW of the renewable total attributed to net-metering installations.
He said the increasing use of rooftop solar demonstrated that consumers and businesses were already responding to the need for cheaper and more reliable energy by investing in alternative power sources.
“Pakistan cannot afford to ignore this transition. The government should facilitate renewable energy investment, improve grid integration and create a predictable policy environment for solar, wind and other clean energy projects,” he said.
The Economic Survey reported that hydropower capacity stood at 11,615 MW, accounting for 23.4% of total installed capacity, while nuclear power capacity remained unchanged at 3,530 MW, or 7.1%.
Although renewable energy capacity expanded rapidly, thermal power continued to dominate actual electricity generation during FY2025-26. Pakistan generated 92,835 gigawatt-hours (GWh) of electricity during the year, compared with 89,809 GWh in the previous fiscal year.
Thermal power contributed 43,581 GWh, or 46.9%, of total generation, followed by hydropower at 27,961 GWh, or 30.1%. Nuclear power contributed 17,133 GWh, or 18.5%, while renewable energy accounted for 4,160 GWh, or 4.5%.
Ijaz noted that the relatively lower contribution of renewable sources to actual generation compared with their share of installed capacity indicated the need for further investment in grid infrastructure, storage technologies and efficient integration of intermittent renewable power.
He also highlighted the changing pattern of electricity consumption, particularly the increasing share of industry.
According to data from the Ministry of Energy (Power Division) and the Hydrocarbon Development Institute of Pakistan, industrial electricity consumption during July-March FY2025-26 reached 26,205 GWh, compared with 21,083 GWh during the corresponding period of FY2024-25.
The industrial sector’s share of total electricity consumption consequently increased from 26.3% to 31.52%.
Ijaz said the substantial increase in industrial electricity consumption was a positive indicator for economic activity but also underscored the need to ensure competitive energy prices for businesses.
He said expensive electricity remained a major challenge for Pakistan’s industrial sector and called for a comprehensive energy strategy focused on reducing generation costs, improving transmission efficiency and promoting renewable energy.
He urged the government to encourage industrial consumers to shift towards solar and other renewable sources through supportive policies, easier financing and streamlined regulatory procedures.
“The future of Pakistan’s energy sector should be based on affordability, reliability and sustainability. Renewable energy can reduce pressure on foreign exchange reserves by lowering dependence on imported fuels while also providing cheaper electricity to households and businesses,” Ijaz said.
He stressed that the current geopolitical environment made diversification of energy sources even more important, adding that Pakistan should use the rapid growth in solar and other renewable capacity as an opportunity to build a more resilient energy system.
Ijaz further called for long-term policies that encourage private-sector investment in renewable energy, battery storage, modern transmission networks and energy-efficient technologies.
He said a balanced transition towards renewable energy would not only strengthen Pakistan’s energy security but also support industrial growth, reduce production costs and improve the competitiveness of Pakistani exports in international markets.
He urged the authorities to develop a coordinated renewable energy roadmap that protects existing investments while creating sufficient space for new clean-energy projects and technologies.
Ijaz said Pakistan’s growing renewable capacity was a positive development, but the country needed to convert this capacity into greater actual generation and affordable electricity through better planning, grid modernisation and investment in energy storage.
He concluded that accelerating the transition towards renewable energy was no longer merely an environmental objective but an economic necessity for Pakistan.