Pakistan unveils new building efficiency codes to cut summer power demand, boost industrial competitiveness

An aerial view of the commercial district of Pakistan’s port city of Karachi on January 27, 2023. (AFP/File)
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Updated 22 October 2025
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Pakistan unveils new building efficiency codes to cut summer power demand, boost industrial competitiveness

  • Energy-saving insulation models presented to PM’s aide as part of national sustainability push
  • Government says new building codes will help reduce transmission costs, curb peak energy load

ISLAMABAD: Pakistan’s government has rolled out new energy-efficient building codes and insulation models aimed at cutting power demand during peak summer months and improving industrial competitiveness, officials said on Wednesday.

The move comes as Pakistan continues to face chronic energy shortfalls and soaring demand during the summer, when industrial and household electricity use typically overwhelms the grid. The country relies heavily on imported fossil fuels, which contribute to high power generation costs and recurring balance-of-payments pressures. Energy experts have long urged greater investment in conservation and efficiency to reduce dependence on expensive imports and stabilize supplies.

On Wednesday, the National Transmission and Dispatch Company (NTDC) briefed Prime Minister’s Special Assistant on Industry and Production Haroon Akhtar Khan on new energy-saving technologies for homes and factories, underscoring the importance of sustainable building design in lowering national energy costs.

“Modern technology and sustainable energy are the need of the hour for Pakistan,” Khan was quoted as saying in a statement. “Insulation in buildings offers an effective solution to lower transmission costs and energy demand during summer.”

NTDC Chairman told the meeting insulation helps maintain optimal indoor temperatures and significantly reduces electricity consumption. He added that Pakistan has already introduced building energy-use codes, and implementation has begun under federal directives.

Khan said the government’s energy policy was directly linked to the country’s economic growth, noting that “GDP expansion depends on how efficiently we manage energy costs.”

He directed the Engineering Development Board to work with NTDC to monitor progress on the initiative and report developments to the federal cabinet.

Officials said the push for sustainable energy use is part of broader reforms to stabilize Pakistan’s power sector, which faces chronic supply shortages, high costs, and rising summer demand. The initiative also aligns with Pakistan’s commitments to adopt climate-resilient practices and reduce energy waste across industrial and residential sectors.

A delegation from the Lahore University of Management Sciences (LUMS) also invited Khan to attend the upcoming Asia Transit Summit 2025, where energy efficiency and green infrastructure will be key discussion topics. 


Pakistan receives $1.2 billion from IMF under EFF, RSF loan programs— central bank

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Pakistan receives $1.2 billion from IMF under EFF, RSF loan programs— central bank

  • IMF Executive Board approved Pakistan’s second review under EFF, first review under RSF loan programs this week 
  • Disbursements from IMF have been crucial for cash-strapped Pakistan as it tries to recover from economic crisis 

ISLAMABAD: Pakistan’s central bank announced on Thursday that it has received $1.2 billion under the International Monetary Fund’s (IMF) External Fund Facility and Resilience and Sustainability Facility (RSF) loan programs. 

The IMF approved a $7 billion bailout package for Pakistan under its EFF program in September 2024 while in May 2025, it approved a separate $1.4 billion loan to Pakistan under its climate resilience fund. The RSF will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters. 

The global lender approved Pakistan’s second review under its $7 billion EFF program and first review under the RSF loan on Tuesday. As per the State Bank of Pakistan (SBP), the central bank received a combined sum of $1.2 billion under the EFF and RSF on Dec. 10. 

“The amount would be reflected in SBP’s foreign exchange reserves for the week ending on Dec. 12, 2025,” the SBP said in a statement. 

IMF bailouts have been crucial for cash-strapped Pakistan, which has been struggling with a prolonged economic crisis that has exhausted its financial reserves and weakened its currency. Pakistan came to the brink of a sovereign default in 2023 before a last-gasp IMF bailout package helped it avert the crisis. 

Pakistan has had to take tough decisions to comply with the IMF’s loan requirements, which include scrapping subsidies from food and fuel items to trigger inflation. Since then, Pakistan has attempted to regain stability by sharply reducing inflation and recording a current account surplus. 

The disbursement, however, comes at an important time for the South Asian country as it mitigates losses from a deadly monsoon season that killed over 1,000 people since late June and caused at least $2.9 billion in damages to agriculture and infrastructure.