Pakistan Renewable Energy Spending Trails Fuels
Pakistan renewable energy spending stayed far behind fossil fuel imports between FY20 and FY26, with more than 90 per cent of the country’s $128 billion energy import bill going to oil, gas and coal.
Fossil energy imports accounted for about $117 billion of the total spending, while renewable energy technologies received around $11 billion, according to the “Renewables First, Pakistan Energy Market Review, 2026” (PEMR26) report. ProPakistani reported the findings.
The fossil fuel category includes crude oil, refined petroleum products, imported coal and liquefied natural gas (LNG). Renewable energy technology imports include solar panels, wind turbines, inverters and lithium-ion batteries.
The report points out that although imports of renewable energy equipment have increased considerably since FY20, their total value remains much smaller than fossil fuel imports.
Why Pakistan renewable energy spending lags
The gap is striking because Pakistan has some of the best solar resources in the world, and rooftop solar has already taken off. Prime Minister Shehbaz Sharif told the COP31 climate summit this week that Pakistan has added nearly 22 gigawatts of rooftop solar capacity in just two years, a shift driven by households and businesses rather than the state.
Clean sources now provide nearly 55 per cent of Pakistan’s energy mix, the prime minister said at the COP31 summit in Antalya. That figure covers domestic generation, where hydro and nuclear play a large role. The import bill tells a different story, because the fuel Pakistan still buys from abroad is almost entirely fossil.
The two pictures sit side by side. At home, solar panels are spreading fast and the Chashma-5 nuclear plant will add 1,200 megawatts of clean energy when complete. At the border, the money still flows to oil, gas and coal.
The cost to foreign exchange
This spending pattern also has implications for Pakistan’s foreign exchange reserves. The country continues to allocate a large share of its import spending to fuels that expose it to international commodity prices and supply disruptions.
When oil prices rise, or when shipping is disrupted, the import bill climbs at once. That pressure falls on the rupee and on the reserves the State Bank holds to pay for imports. Renewable equipment, by contrast, is mostly a one-time purchase. Once panels and turbines are installed, the fuel is free.
The government has cut fuel prices for consumers this month, with petrol down by Rs3 per litre and diesel by Rs7 from November 12. Lower pump prices ease pressure on households, but they do not change the import bill. The fuel still has to be bought abroad.
What the report says about the shift
The PEMR26 report does not argue that Pakistan has ignored renewables. Imports of solar panels, inverters and batteries have grown considerably since FY20, and the rooftop boom shows that buyers are willing to invest. The point is one of scale. At about $11 billion over six years, renewable technology imports are still less than a tenth of the fossil fuel bill.
The report’s message is that the shift is under way but incomplete. Pakistan is buying more clean technology than before, yet the bulk of its energy spending still goes to fuels that must be imported again and again.
Closing that gap would need more than rooftop panels. It would need grid upgrades, storage and financing so that solar and wind power can replace imported fuel in industry and transport, not only in homes.
The climate case is also pressing. Pakistan contributes less than one per cent of global greenhouse gas emissions, yet it ranks among the countries hit hardest by climate change. Floods and glacial melt threaten families in Gilgit-Baltistan and across the north, and the COP31 talks are weighing how much finance developing countries will receive to adapt.
Lower energy costs would help industry too. Telecom operators, for example, have welcomed cheaper electricity for their towers under a new industrial tariff, a step that cuts the cost of running networks. Cheaper power from domestic clean sources would do the same for factories and farms.
What happens next
The report leaves the direction of travel clear. Pakistan’s renewable imports are growing, and domestic solar capacity is rising fast. But until clean technology takes a much larger share of the import bill, the country’s energy costs will stay tied to world oil and gas prices.
The COP31 summit, which runs until November 20, will test whether climate finance can speed up that shift. Pakistan has said it needs about $138 billion by 2035 for low-carbon power, plus $50 billion more to replace coal with solar. Whether that money arrives will shape how fast the import bill changes.
Frequently asked questions
How much did Pakistan spend on energy imports from FY20 to FY26?
Pakistan spent $128 billion on energy imports in that period, with about $117 billion going to fossil fuels and around $11 billion to renewable energy technologies.
What counts as a fossil fuel import?
Crude oil, refined petroleum products, imported coal and liquefied natural gas (LNG) make up the fossil fuel category in the PEMR26 report.
What does the renewable energy figure cover?
It covers imports of solar panels, wind turbines, inverters and lithium-ion batteries, according to the Renewables First report.
Why does the import mix matter?
A large fossil fuel bill exposes Pakistan to world commodity prices and supply shocks, and it drains foreign exchange reserves. Renewable equipment is mostly a one-time cost.
Has renewable energy grown in Pakistan?
Yes. Imports of renewable equipment have risen considerably since FY20, and Pakistan has added nearly 22 gigawatts of rooftop solar capacity in two years, according to the prime minister.
