Pakistan has emerged as the world s sixth-largest solar market, with its rapid adoption of solar energy, offering valuable lessons for emerging markets. The country s energy sector has long struggled with financial strain due to circular debt, power theft, and transmission losses, leading to blackouts and high electricity costs.

Despite these challenges, Pakistan has ideal climatic conditions for solar power generation, with over nine hours of sunlight in most parts of the country. According to the World Bank (WB), utilising just 0.071 percent of the country s area for solar photovoltaic power generation would meet Pakistan s electricity demand.

The National Electric Power Regulatory Authority (NEPRA) reports that only 5.4 per cent of Pakistan s installed power generation capacity comes from renewable sources of energy like wind, solar, and biomass, while fossil fuels still dominate the fuel mix at 63 per cent.

“The country is now the world’s sixth-largest solar market,” WEF said in its report.

“Declining solar panel prices, coupled with skyrocketing grid electricity tariffs that have increased by 155 per cent over three years, are fueling a rush in renewable energy adoption in Pakistan, with solar power leading the way,” the report revealed.

Pakistan s shift towards solar energy has been driven by external factors, including China s overproduction of solar panels, which has lowered costs and made Pakistan the third-largest destination for Chinese solar exports.