Pakistan struggles with a complex trilemma involving energy security, environmental sustainability, and economic stability, necessitating a decisive shift to a green economy built on local innovation and expertise.
GREEN TRANSITION
Pakistan struggles with a complex trilemma involving energy security, environmental sustainability, and economic stability, necessitating a decisive shift to a green economy built on local innovation and expertise.
Green transition is transforming the built environment, transport and industrial systems while reshaping the global energy order. At its core, indigenous technology and skilled workforce development stand as key pillars of a sustainable energy transition.
However, Pakistan ranks 113th out of 120 on the World Economic Forum's 2024 Energy Transition Index, relying heavily on imported technologies and foreign expertise, making its economy vulnerable. While its Alternative and Renewable Energy (ARE) 2019 policy focuses on local manufacturing, workforce development and technology transfer, the country lacks a specific implementation plan. There is a dire need for a well-defined strategy with specific targets and timelines for local talent development, technology transfer and indigenous innovation.
Pakistan faces a critical workforce gap in the clean energy transition. While awareness has increased, practical skill development remains inadequate. With 64 per cent of the population under 30 and 4.5 million unemployed youth, unemployment among the 15–24 age group stands at 11.1 per cent, according to the Pakistan Economic Survey 2023–24. Therefore, strategic upskilling is essential to unlock opportunities in the green transition. Many workers in traditional sectors like construction and automotive possess transferable skills but lack structured pathways for transition. Electricians and HVAC technicians, for instance, could shift to solar PV and wind turbine maintenance with targeted re-skilling.
Globally, green skills are reshaping industries from renewable energy and sustainable transport to green tech and circular economies, with climate mitigation and adaptation among the top job creators. The World Economic Forum’s Future of Jobs Report 2025 projects eight million new jobs by 2030, while the energy sector alone will add another million, making it the second-largest tech-driven employment sector after IT & AI. Renewable energy jobs surged to 16.2 million in 2023 up from 13.7 million in 2022, driven by solar PV growth, according to IRENA’s Renewable Energy and Jobs Annual Review 2024.
Yet, Pakistan lags in recognising this shift. This is not just a workforce gap; it is a skills gap. As cleantech becomes increasingly digitised, demand for AI engineers, energy analysts and grid specialists is rising. Proficiency in data analytics, energy modelling and automation is now essential for Pakistan’s energy future. Without urgent action, the country risks missing out on the economic dividends of the global energy transition.
Pakistan must move beyond conventional education in energy and power systems to advanced concepts like AI-driven energy systems, hybrid renewable systems, smart grids, EV integration, bioenergy, hydrogen, blockchain energy trading, energy modelling and optimisation, IoT, digital twins, energy informatics, conditioning monitoring & fault diagnosis, advanced DC architectures and energy storage solutions.
Beyond advanced technical concepts, Pakistan’s energy transition demands expertise in entrepreneurship, energy economics and resource assessment, energy poverty, energy justice and equity, energy policy & law, power planning and management, power markets, and green finance. Without this interdisciplinary foundation, even the most advanced engineering solutions will struggle to drive real-world impact.
Therefore, the country must integrate these emerging areas into its educational framework and launch a national capacity development program for green certifications in renewable energy, energy efficiency, energy management, smart grids, mini/microgrids, energy modelling and analytics, electric vehicles, the circular economy, sustainability, ESG framework, net zero energy buildings, carbon markets and green finance. Just as digital skills and IT certifications have been institutionalised through national initiatives, a similar approach is essential to equip the workforce for the rapidly evolving energy landscape.
Pakistan’s energy transition hinges on technical expertise, home-grown innovation and strong policy intervention. By investing in human capital and advancing technology, the country can achieve energy security and reshape its energy future, attaining energy independence and climate resilience
This shift requires sustained investment in green human capital from both the public and private sectors, backed by policy recognition, structured training, and industry alignment. Academia must update curricula, the private sector must actively engage in CSR-driven capacity-building programs, and the government must introduce targeted initiatives to foster a skilled workforce. International donors must prioritise local expertise over infrastructure financing to ensure Pakistan’s transition is locally led.
Encouragingly, programmes such as the Margalla School on Energy & Climate (MSEC) by Renewables First trains future energy leaders. While such efforts are impactful, the responsibility lies with the state to institutionalise and scale these programmes through public-private partnerships, academia-industry collaboration, vocational training, and structured micro-degree and postgraduate diploma programmes. A well-structured framework, such as a Green Skills Council, can align government, academia, technical institutes, sectoral bodies and industry to build a workforce ready for evolving energy needs, driving a sustainable energy transition.
The next key challenge in Pakistan’s clean energy transition is on the technology front with its overdependence on imported technologies, such as solar panels, wind turbines, inverters and battery storage in the renewable energy sector. This reliance raises project costs, widens the trade deficit, and exposes the industry to global price volatility.
Rising cost pressures, supply chain disruptions, increasing import duties and exchange rate fluctuations further compromise energy security. Without a robust domestic clean energy industry, Pakistan remains vulnerable to external shocks, delaying its clean energy ambitions and limiting economic benefits.
Although ARE Policy 2019 encourages local manufacturing; weak policy enforcement, inadequate R&D incentives, and absence of quality standards have hindered industrial progress. As per media reports, the near closure of the Pakistan Council of Renewable Energy Technologies (PCRET) has further stifled indigenous research, while Special Economic Zones (SEZs) under CPEC could have facilitated clean technology manufacturing but remain underutilised for local production.
Domestic manufacturers primarily assemble mounting structures rather than producing advanced components such as photovoltaic cells, wind turbine blades, and high-efficiency inverters. Weak technology transfer agreements further limit innovation. These gaps have left Pakistan reliant on imports, stalling the development of a competitive domestic renewable energy sector.
Pakistan’s solar market is also expanding rapidly, but unchecked imports by unauthorised traders have flooded it with substandard panels. A strong local industry can address these challenges by ensuring standardised, high-quality production and a more reliable supply chain.
Moreover, local manufacturing offers a massive opportunity to create and diversify demand amid surplus electricity, gas shortages, and a ballooning import bill, which the government continues to subsidise. Producing energy-efficient appliances like solar cookers, water heaters and electric geysers for cooking, water and home heating can reduce reliance on costly imports. However, to scale up these technologies, lowering upfront costs is essential, something achievable through domestic production. Establishing local units can streamline supply chains, reduce costs, and enhance reliability, ultimately making clean energy more affordable and strengthening the economy.
This, in turn, necessitates immediate and substantial funding for domestic renewable energy research to underpin Pakistan's clean energy transition and enhance its energy independence. Strengthening local manufacturing will lower costs, create jobs, build local expertise and reduce reliance on foreign markets. Therefore, a phased localisation mandate should require foreign firms to source components domestically, ensuring technology transfer and industrial growth. Moreover, strategic incentives must fund university-led clean energy research, establish R&D clusters and provide grants for startups.
To achieve self-reliance, it is essential to create industrial hubs for renewable energy within Special Economic Zones (SEZs), provide incentives for technology transfer and foster industry-academia research and development collaborations.
For the technology transfer and indigenous development objective, finance mobilisation is a key driver. Being a highly climate-vulnerable country, Pakistan must leverage Just Energy Transition Partnership (JETPs) to mobilise international finance and enhance public-private partnerships. The transition also needs a green innovation fund to support startups, incubators, universities and R&D centres for renewable energy technological innovation.
Pakistan’s energy transition hinges on technical expertise, home-grown innovation and strong policy intervention. By investing in human capital and advancing technology, the country can achieve energy security and reshape its energy future, attaining energy independence and climate resilience.
The writer is an academic and researcher based in Jamshoro. He can be reached at: hussainshafqat.memon@gmail.com
