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Pakistan is experiencing soaring demand for electricity across all of the sectors of its economy. The new demand is being met by rapidly growing deployment of distributed solar, estimated at 38 GW as of June, 2025. In 2025, 44% of solar deployment was residential, followed by industry (26%), agriculture (21%) and commercial users (9%). The expansion of distributed solar has enhanced electrification across the economy, lifting Pakistan's electrification rate to 21.7% in FY2025 from 17% in FY2023, close to the global average of 22%. This surge to 200 terawatt-hours of electricity is not reflected in official data, according to a report by Ember Energy titled "The solarization of Pakistan's energy economy".
The solar energy revolution in Pakistan is led by consumers. Driven by soaring electricity costs, unreliable grid infrastructure, and cheap imported solar panels, millions of households and businesses have installed rooftop solar. This rapid transition to solar has transformed the country's energy landscape. According to the report, Pakistan’s total electricity demand increased by 33 terawatt-hours (TWh) between fiscal years 2023 and 2025. Distributed solar generation alone grew by 36 TWh during the same period, making it the primary driver of electricity demand growth and offsetting declines elsewhere in the power system.
"Pakistan has a thirst for energy, and solar is providing it," said Dave Jones, Chief Analyst at Ember. "Distributed solar is so fast and cheap to build, that it is actually driving up electricity demand." The newly added solar capacity has saved more than US$12 billion in oil and gas imports by February, 2026, Ember said, as well as enabling growth in the agriculture, industrial and commercial parts of Pakistan’s economy.
| Actual Solar Deployment in Pakistan Far Exceeds Official Stats. Sou... |
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Pakistan accelerates four major dam projects amid growing water security concerns
https://www.arabnews.pk/pakistan/pakistan-accelerates-four-major-da...
Projects including Diamer-Bhasha Dam, Mohmand Dam, Kurram Tangi Dam and Nai Gaj Dam are expected to improve water availability
Pakistan’s water resources are under growing pressure from erratic rainfall and rapidly melting glaciers linked to climate change pressures
ISLAMABAD: Pakistan has accelerated work on four dam projects that are expected to add more than eight million acre-feet (MAF) of water storage capacity, state media reported, as the country seeks to strengthen water security amid growing climate-related challenges.
The projects include the Diamer-Bhasha Dam, Mohmand Dam, Kurram Tangi Dam, and the Nai Gaj Dam, according to the Associated Press of Pakistan (APP). The dams are expected to improve water availability, enhance flood management, and boost hydropower generation capacity.
Pakistan’s water resources are under increasing pressure from erratic rainfall patterns and the rapid melting of glaciers linked to climate change. Officials have repeatedly warned that the country faces a widening gap between water supply and demand, making additional storage infrastructure a national priority.
“Currently, four major projects with a combined live storage capacity of 8.136 MAF are under implementation,” APP said in a report on Saturday.
“These include the strategically important Diamer-Bhasha Dam, which alone will provide 6.4 MAF of storage capacity, along with Mohmand Dam with 0.676 MAF, Kurram Tangi Dam with 0.90 MAF and Nai Gaj Dam with 0.16 MAF.”
Pakistan’s three main reservoirs are Tarbela Dam, with a live storage capacity of 5.580 MAF, Mangla Dam with 7.277 MAF, and Chashma Barrage with 0.311 MAF, it added.
The report highlighted that the Water and Power Development Authority (WAPDA) designated the current period as the “Decade of Dams”, accelerating major water infrastructure projects to bolster water security amid climate change and rising demand.
The report said reservoir projects with a combined live storage capacity of 15.88 MAF were in the planning and design stages including Sindh Barrage (2.0 MAF), Shyok Dam (5.5 MAF), Akhori Dam (7.0 MAF), Chiniot Dam (0.93 MAF) and Murunj Dam (0.45 MAF).
It added that WAPDA also expanded its hydro-meteorological monitoring and telemetry systems to provide real-time data on river flows, transboundary streams, reservoir levels, and rainfall.
In April, the government said Pakistan had water storage capacity equivalent to about 90 days of demand and announced plans for a high-level task force meeting to address mounting water security concerns.
Last year, Pakistan’s Prime Minister Shehbaz Sharif called for urgent construction of reservoirs and dams after swollen rivers devastated the breadbasket of the country’s most populous Punjab province.
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Pakistan is currently classified as a lower middle-income country, with the ambition to become a high-income country. Its policymakers now recognize that no country has transitioned from middle-income to high-income status without generating substantial electricity at affordable rates. The link between energy and prosperity has been well-established since the advent of the Industrial Revolution. The AI Revolution has further reinforced it. Can Pakistan make the…
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