Experts Urge Clear, Long-Term Energy Strategy for Pakistan Focused on Renewable Investments

Islamabad—A high-level energy roundtable, called on policymakers to formulate a clear and long-term energy strategy for Pakistan, with an emphasis on reducing carbon emissions and boosting investments in renewable energy (RE) projects.

Organized by the Sustainable Development Policy Institute (SDPI)’s Network for Clean Energy Transition (NCET), the event titled “Assessing the Social Costs of Coal Dependence in Pakistan: A Way Forward to an Environmentally Compliant Industrial Ecosystem,” brought together key stakeholders and experts to discuss the country’s coal dependence and explore sustainable energy alternatives.

Coal’s Economic and Environmental Costs Highlighted

Ubaid ur Rehman Zia, Head of SDPI’s Energy Unit, opened the session by noting the critical role coal has played globally in energy security. However, with coal still generating around 16% of Pakistan’s electricity in 2024, Zia stressed that the country must begin transitioning toward renewable energy. He warned of the significant economic and environmental risks, particularly in light of emerging global decarbonization efforts and compliance mechanisms like the Carbon Border Adjustment Mechanism (CBAM). Zia added that while Pakistan is shifting from imported to local coal, a comprehensive analysis of coal’s social costs is essential.

Socio-Economic Benefits in Thar, Environmental Concerns Raised

Ali Nawaz, Director General of Thermal at the Private Power and Infrastructure Board, emphasized the socio-economic improvements in the Thar region, citing new infrastructure such as roads, hospitals, and educational facilities. Despite these advancements, Nawaz acknowledged the pressing need for strict environmental regulations to protect the region’s ecological balance.

Azhar Lashari of the Policy Research Institute for Equitable Development (PRIED) echoed these concerns, highlighting the global energy shift toward renewable sources. Lashari pointed out the significant social and environmental impacts of coal mining in the Thar region, particularly on nomadic populations displaced by land acquisitions for coal projects. He urged swift action to mitigate the negative effects on local communities.

Environmental Degradation in Thar Underlined

Dr. Majid, an environmental expert, detailed the adverse environmental impacts of coal mining in Thar, including water contamination, deforestation, and air pollution. He noted that local communities have faced displacement, water scarcity, and agricultural challenges due to coal-based energy production. Dr. Majid advocated for the use of emission control technologies and clean coal solutions as interim measures while Pakistan gradually transitions to renewable energy.

Economic Concerns Over Coal Investment

Basit, a financial expert, highlighted the growing economic concerns of continued investment in coal infrastructure. He pointed out that solar and wind energy are now more cost-effective, and Pakistan risks being left with stranded coal assets if the government does not strategically shift its focus to renewables. He stressed that long-term planning is essential for ensuring both sustainability and global market competitiveness, particularly for export-oriented industries.

Miners’ Working Conditions and Advocacy for RE Shift

Advocating for miners’ rights, Ms. Fareeha addressed the poor working conditions in Pakistan’s coal mines, particularly in Punjab. She called for stricter safety regulations and healthcare provisions for miners. Additionally, she advocated for a transition toward renewable energy, such as solar power, which offers a more sustainable and socially responsible energy solution for the country.

Consensus on Renewable Transition and Policy Reform

The roundtable concluded with a strong consensus on the need for a clear, long-term energy strategy. Participants stressed the importance of reducing carbon emissions, increasing investments in renewable energy, and addressing the social and environmental costs of coal dependence. Experts urged the government to conduct in-depth financial modeling on the social cost of coal, ensuring that Pakistan’s future energy strategy aligns with global climate goals and supports an environmentally compliant industrial ecosystem.