Pakistan has achieved a significant milestone: solar power now supplies over 25% of its utility electricity, marking a rapid ascent from its position as the fifth-largest electricity source just two years ago. From January to April 2025, solar generation averaged 25.3% of electricity output, making Pakistan one of fewer than 20 countries globally to reach this level of solar penetration. This surge has been fueled largely by an influx of solar module imports from China, rising fivefold from 3,500 MW in 2022 to 16,600 MW by 2024, with over 10,000 MW imported in just the first four months of 2025.

Solar power’s rise from 4 % to 25 % of Pakistan’s electricity mix in four years ranks the country among fewer than twenty solar leaders worldwide.

These figures place Pakistan ahead of major economies: global solar averages near 8%, China at 11%, the US at 8%, and Europe at 7%. With 28% of electricity now derived from renewables, Pakistan’s goal of reaching 60% renewables by 2030 appears reachable. The economic implications are profound. Lower marginal costs, solar’s fuel is free, and reduced import dependency could cut the energy import bill. In 2024, Pakistan imported $1.4 bn worth of solar panels from China, leveraging low equipment costs to counter past crises in grid reliability and high tariffs.

Nonetheless, this boom poses challenges. Affluent households and industries have benefited disproportionately. By April, solar composed over 14% of power mix in 2024, compared to just 4% in 2021, but rooftop and off-grid adoption remains limited to those who can afford panels and space. Apartment dwellers and urban middle-income households, who have neither roof access nor capital, are effectively shut out. The result is an energy divide: those adopting solar reduce grid demand, forcing power companies to raise tariffs on remaining consumers, deepening inequality.

Large-scale projects also have mixed outcomes. Resources like the Quaid-e-Azam Solar Park in Bahawalpur, built in phases since 2015, received criticism for underperformance, yielding only 18 MW from an expected 100 MW due to dust and water-cleaning challenges, and costing significantly more per unit than global benchmarks. Yet these setbacks, though costly, highlight the need for local capacity-building and smarter investment rather than deterring future projects.

Imports of Chinese solar modules jumped from 3,500 MW in 2022 to 16,600 MW in 2024, with 10,000 MW more in early 2025 alone.

To maximize economic benefits, Pakistan must integrate solar expansion with robust policy frameworks. Strengthening net-metering and feed-in tariffs is essential: less than 10% of rooftop solar systems now feed excess power back to the grid. Streamlining grid connections, reducing bureaucratic delays, and incentivizing shared rooftop solar in apartment complexes can distribute benefits more equitably.

Beyond domestic access, the solar industry offers export potential. As Pakistan now accounts for about 12% of China’s solar module exports in 2025, leveraging this industrial link can foster domestic assembly, maintenance training, and even manufacturing, incrementally shifting the country up the solar value chain. Local production could also help reduce balance-of-payments pressure and create green jobs.

The broader economy stands to gain. Energy affordability can catalyse industrial output and investments, particularly in energy-intensive sectors like textiles, which are vital for export growth. Agricultural productivity could improve through solar-powered irrigation systems, especially now that Punjab has announced subsidies to solarize 2,000 MW of agricultural tube wells. Clinics, schools, and rural industries can benefit from reliable, low-cost power.

Pakistan’s journey to 25% solar is impressive, not just for its speed, but also for its strategic implications. Yet to truly transform the economy, this boom must be inclusive, efficient, and sustainable. That means correcting structural inequities, ending grid isolation, embracing local manufacturing, and enhancing project oversight.

Pakistan could capture 12 % of China’s panel export market by moving up the value chain into local assembly, servicing, and green-job creation.

Pakistan’s status as a solar pioneer in South Asia brings prestige; harnessing full economic value will be its true test. As sunlight continues to drive Pakistan’s energy landscape, policymakers, entrepreneurs, and communities must ensure that solar isn’t just a power source but a catalyst for equitable growth. This is not merely sustainable energy; it can be sustainable development.

Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.