Pakistan’s solar surge lifts it into rarefied 25% club

A visitor looks at solar panels exhibited during the International Solar Energy Meet (ISME) Pakistan in Lahore on May 24, 2025. (AFP/File)
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Updated 17 June 2025
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Pakistan’s solar surge lifts it into rarefied 25% club

  • Pakistan has boosted solar power generation by over three times global average so far this year, solar capacity imports up more than fivefold since 2022
  • Solar power made up 25% of utility-supplied electricity in 2025, making Pakistan among 20 nations sourcing quarter or more monthly electricity supplies from solar 

LITTLETON, Colorado: Pakistan is rapidly emerging as a key leader in solar power deployment, and not just within emerging economies.

The South Asian country has boosted solar electricity generation by over three times the global average so far this year, fueled by a more than fivefold rise in solar capacity imports since 2022, according to data from Ember.

That combination of rapidly rising capacity and generation has propelled solar power from Pakistan’s fifth-largest electricity source in 2023 to its largest in 2025.

What’s more, so far in 2025 solar power has accounted for 25% of Pakistan’s utility-supplied electricity, which makes it one of fewer than 20 nations globally that have sourced a quarter or more of monthly electricity supplies from solar farms.

EXCLUSIVE CLUB

Over the first four months of 2025, solar farms generated an average of 25.3% of Pakistan’s utility electricity supplies, Ember data shows.

That average compares with a solar share of 8% globally, around 11% in China, 8% in the United States, and 7% in Europe.

And while the average solar shares in the Northern Hemisphere will climb steadily through the summer months, very few countries will even come close to securing a quarter of all utility electricity supplies from solar farms any time soon.

Indeed, only 17 countries have ever registered a 25% or more share of monthly utility electricity supplies from solar farms, according to Ember.

Those nations are: Australia, Belgium, Bulgaria, Chile, Cyprus, Denmark, Estonia, Germany, Greece, Hungary, Latvia, Lithuania, Luxembourg, the Netherlands, Pakistan, Portugal and Spain. That list is heavily skewed toward Europe, where the power sector shock from Russia’s full-scale invasion of Ukraine in 2022 sparked urgent and widespread power-sector reform and the rapid roll-out of renewable generation capacity.

Indeed, Australia and Chile are the only nations aside from Pakistan that are outside Europe, and all included nations boast a far higher gross domestic product (GDP) per capita than Pakistan.

IMPORT DRIVE

The chief driver of Pakistan’s solar surge has been an accelerating import binge of solar capacity modules from China.

Between 2022 and 2024, Pakistan’s imports of China-made solar components jumped fivefold from around 3,500 megawatts (MW) to a record 16,600 MW, according to Ember.

Pakistan’s share of China’s total solar module exports also rose sharply, from 2 percent in 2022 to nearly 7 percent in 2024.

And that import binge has continued into 2025.

Over the first four months of the year, Pakistan imported just over 10,000 MW of solar components from China, compared with around 8,500 MW during the same period in 2024.

That rise of nearly 18% in imported capacity has lifted Pakistan’s share of China’s solar exports to new highs too, with Pakistan accounting for around 12% of all of China’s solar exports so far this year.

SOLAR-CENTRIC

The frantic deployment of imported solar modules across Pakistan in recent years has upended the country’s electricity generation mix.

So far in 2025, solar is by far the single largest source of electricity, followed by natural gas, nuclear reactors, coal plants and hydro dams.

As solar farms were the fifth-largest supply source for electricity just two years ago, solar’s pre-eminence so far this marks a sharp swing toward renewables within the country’s utility network.

In addition, the country is committed to much more growth in renewable energy generation capacity through the rest of this decade.

Pakistan is targeting 60% of electricity supplies to come from renewable sources by 2030, according to the International Trade Administration.

Through the first four months of 2025, renewable energy sources generated 28% of the country’s electricity, so energy planners are aiming for a more than doubling in that share by the end of the decade.

With solar modules representing the quickest and cheapest means to meet those goals, further rapid build-out of the country’s solar farm system looks likely, which will cement Pakistan’s status as a global solar superpower.


Pakistan drops 8,000 MW power procurement, claims $17 billion savings amid IMF-driven reforms

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Pakistan drops 8,000 MW power procurement, claims $17 billion savings amid IMF-driven reforms

  • Government says decision taken “on merit” as it seeks to cut losses, circular debt, ease consumer pressure 
  • Power minister says losses fell from $2.1 billion to $1.4 billion, circular debt dropped by $2.8 billion

ISLAMABAD: Pakistan has abandoned plans to procure around 8,000 megawatts of expensive electricity, the power minister said on Sunday, adding that the decision was taken “purely on merit” and would save about $17 billion.

The power sector has long been a major source of Pakistan’s fiscal stress, driven by surplus generation capacity, costly contracts and mounting circular debt. Reforming electricity pricing, reducing losses and limiting new liabilities are central conditions under an ongoing $7 billion IMF program approved in 2024.

Pakistan has historically contracted more power generation than it consumes, forcing the government to make large capacity payments even for unused electricity. These obligations have contributed to rising tariffs, budgetary pressure and repeated IMF bailouts over the past two decades.

“The government has abandoned the procurement of around 8000 megawatts of expensive electricity purely on merit, which will likely to save 17 billion dollars,” Power Minister Sardar Awais Ahmed Khan Leghari said while addressing a news conference in Islamabad, according to state broadcaster Radio Pakistan.

He said the federal government was also absorbing losses incurred by power distribution companies rather than passing them on to consumers.

The minister said the government’s reform drive was already showing results, with losses reduced from Rs586 billion ($2.1 billion) to Rs393 billion ($1.4 billion), while circular debt declined by Rs780 billion ($2.8 billion) last year. Recoveries, he added, had improved by Rs183 billion ($660 million).

Leghari said electricity tariffs had been reduced by 20 percent at the national level over the past two years and expressed confidence that prices would be aligned with international levels within the next 18 months.

Power sector reform has been one of the most politically sensitive elements of Pakistan’s IMF-backed adjustment program, with higher tariffs and tighter enforcement weighing on households and industry. The government says cutting losses, improving recoveries and avoiding costly new capacity are essential to stabilizing public finances and restoring investor confidence.