Comment by Riaz Haq on Thursday

Pakistan's Solar Boom Is Rewriting the Global South's Economic Development

https://youtu.be/EKJqOh2hqmA?is=nkcpeipDe4CJKrO0

In just two years, the country installed an astonishing 27 GW of distributed solar—roughly equivalent to the capacity of every coal, gas and oil power plant ever built in Pakistan. The result isn't simply more renewable energy. It's the rapid electrification of homes, farms, businesses and industry, powered by some of the cheapest solar panels ever manufactured.

Ember's Dave Jones explains why Pakistan's experience could become the blueprint for dozens of developing countries. We discuss cheap Chinese solar, electrification, batteries, economic development, LNG demand, EVs and why distributed energy may allow the Global South to leapfrog the fossil-fuel model that powered the industrial revolution.

If Pakistan is the first large-scale proof that distributed solar can transform an economy, the implications reach far beyond South Asia.

I think this framing better reflects the interview's central argument: this isn't primarily a climate story—it's an economic development story driven by disruptive technology. That theme comes through repeatedly in the discussion.

Comment by Riaz Haq yesterday

Saudi Arabia, UAE drive Pakistan remittances to record $41.6bn
Overseas Pakistanis send 8.6% more in FY26 as Gulf nations retain top spot


https://gulfnews.com/world/asia/pakistan/saudi-arabia-uae-drive-pak...


Dubai: Pakistan received a record $41.6 billion in workers’ remittances during fiscal year 2025-26, with Saudi Arabia and the United Arab Emirates accounting for nearly half of the total inflows, underscoring the Gulf’s continued importance to the country’s economy and external finances.
Data released by the State Bank of Pakistan (SBP) on Thursday showed remittances rose 8.6% year-on-year from $38.3 billion in FY25. Saudi Arabia remained the largest source of inflows, contributing $9.78 billion, followed by the UAE at $8.81 billion, the United Kingdom at $6.33 billion and European Union countries at $5.23 billion.

Monthly remittances stood at $3.5 billion in June, up 2% from the same month last year but 18.3% lower than May’s record $4.25 billion, which analysts attributed to a high base following Eid-related transfers.


Biggest source
In June alone, Saudi Arabia remained the biggest source of remittances, with overseas Pakistanis sending $829.6 million, followed closely by the UAE at $792.2 million. The UK contributed $514.9 million, while remittances from the United States totalled $296.8 million.
Khurram Shehzad, adviser to Pakistan’s prime minister, described the annual inflow as a historic milestone.

“This historic milestone reflects the unwavering confidence of overseas Pakistanis and reinforces Pakistan’s external sector resilience, stronger foreign exchange buffers and improving macroeconomic fundamentals,” he tweeted.
Dr Khaqan Najeeb, former adviser to Pakistan’s Ministry of Finance, said the record remittance inflows continued to provide a crucial cushion for the country’s external sector. “Workers’ remittances remained a key source of external sector resilience in FY2025-26, reaching a record $41.6 billion, up 8.6% over the previous year,” he said.
Strong performace
“While inflows eased to $3.5 billion in June due to seasonal factors, they still grew 2% year-on-year, reflecting the continued support of overseas Pakistanis.” He added that Pakistan must boost exports, productivity and investment to ensure remittances complement a more competitive, investment-led economy.
The strong remittance performance comes as Pakistan’s external sector continues to improve. SBP Governor Jameel Ahmad said the country’s current account was expected to post a slight surplus for FY26, supported by robust remittances and services exports despite higher imports.

For the first 11 months of FY26, Pakistan recorded a current account surplus of $255 million, with final figures for the fiscal year expected to remain in positive territory.

Comment by Riaz Haq yesterday

World Bank Boosts Pakistan's Grid for Reliable Clean Energy

https://www.miragenews.com/world-bank-boosts-pakistans-grid-for-rel...

WASHINGTON, July 09, 2026 - The World Bank's Board of Executive Directors today approved US$375.9 million in financing for Pakistan's Grid Stability Enhancement Project, to strengthen its national power transmission network under the Boosting Energy Security through Transmission in Pakistan (BEST-PAK) Multiphase Programmatic Approach (MPA). The Project is the first phase of a 10-year program to help Pakistan modernize its electricity transmission network, reduce power outages, and bring more clean energy to homes, businesses, and industries.

"Pakistan's energy challenges are deeply interconnected with its broader economic stability," said Bolormaa Amgaabazar, World Bank Country Director for Pakistan. "By investing in advanced technologies for more resilient transmission infrastructure, this project will contribute to reducing electricity costs, bring more renewable energy onto the grid, and lay the groundwork for a power sector that works better for households, businesses and industries, as well as overall Pakistan's economy."

Pakistan's electricity network has long struggled with grid instability and transmission bottlenecks that limit the delivery of reliable power and leave clean energy generation underutilized. These constraints affect millions of Pakistanis every day through frequent outages, higher electricity costs, and lost economic opportunities.

The project will install advanced equipment to stabilize the transmission grid and improve the flow of electricity at key substations. This includes Static Synchronous Compensators, or STATCOMs, - at three major 500 kV substations, as well as fixed reactors and capacitor banks across 26 grid substations. These upgrades will help bring 640 MW of currently curtailed wind energy onto the grid, enabling the full use of 1,840 MW of wind capacity in southern Pakistan by moving power to major demand centers. They will also support the integration of approximately 491 MW of planned private sector-led renewable energy projects. Together, these improvements will help Pakistan move toward its national commitment of achieving 60 percent renewable energy in its electricity mix by 2030, in line with the country's Nationally Determined Contribution under the Paris Agreement. Over its lifetime, the project is expected to avoid approximately 832,500 tons of CO₂ emissions each year, or more than 20.8 million tons cumulatively over 25 years.

"A reliable and modern transmission grid is essential for Pakistan's energy future," said Waleed Saleh Alsuraih, Lead Energy Specialist for the World Bank's BEST‑PAK program in Pakistan. "As the first phase of the BEST-PAK program, it unlocks a pathway to large-scale clean energy deployment, stronger energy security, and a modern, commercially oriented transmission sector through targeted infrastructure investments and institutional reforms, creating the conditions for future private capital participation."

The project also advances the Government's ongoing transmission-sector reform agenda, centered on the restructuring of National Transmission & Dispatch Company (NTDC) into specialized successor entities. Drawing on relevant international experience adapted to Pakistan's needs, it supports faster implementation of reforms designed to strengthen governance, accountability, operational performance, and the long-term sustainability of the power sector.

Pakistan is among the countries most exposed to climate-related risks, including river and urban flooding and extreme heat events. The project's design accounts for these realities, by requiring all new installations to meet climate-resilient specifications, including elevated platforms above ground to mitigate flood exposure and equipment designed to operate in temperatures of up to 55°C. These measures will help ensure reliable performance during monsoon seasons and heatwaves.

Comment by Riaz Haq yesterday

Pakistan's Solar Boom Is Rewriting the Global South's Economic Development

https://youtu.be/EKJqOh2hqmA?is=nkcpeipDe4CJKrO0

Pakistan has quietly become one of the world's most important energy stories.

In just two years, the country installed an astonishing 27 GW of distributed solar—roughly equivalent to the capacity of every coal, gas and oil power plant ever built in Pakistan. The result isn't simply more renewable energy. It's the rapid electrification of homes, farms, businesses and industry, powered by some of the cheapest solar panels ever manufactured.

Ember's Dave Jones explains why Pakistan's experience could become the blueprint for dozens of developing countries. We discuss cheap Chinese solar, electrification, batteries, economic development, LNG demand, EVs and why distributed energy may allow the Global South to leapfrog the fossil-fuel model that powered the industrial revolution.

If Pakistan is the first large-scale proof that distributed solar can transform an economy, the implications reach far beyond South Asia.

I think this framing better reflects the interview's central argument: this isn't primarily a climate story—it's an economic development story driven by disruptive technology. That theme comes through repeatedly in the discussion.

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Refrigerator Sales Surge in Pakistan

Pakistan's refrigerator market accounts for ~56% of the country's major household appliances sector. Market penetration sits around 51-56%, with unit sales expected to surge 20% to 339,000 units in CY26. Industry leaders include Haier, Dawlance, Pak Elektron Limited (PAEL), and Waves.

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EV Sales Surge in Pakistan

Electric vehicle adoption in Pakistan is exploding in the two-wheeler sector due to soaring fuel costs and the new Pakistan Accelerated Vehicle Electrification (PAVE) program. Electric-bike registrations surged by 322% year-on-year with cumulative sales reaching 125,511 units by May, capturing over 10% of the monthly two-wheeler market.

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Air conditioner (AC) Sales Surge in Pakistan

Pakistan's air conditioning sector represents a massive market estimated at Rs 190 billion annually. However, in June 2026, the industry experienced a supply glut as delayed summer rains and later heatwaves caused consumer demand to lag behind aggressive manufacturer production targets.

Comment by Riaz Haq 19 hours ago

The man­u­facturing sector performed strongly, posting an expansion of 6.6 per cent in 2025-26 compared with 2pc in the preceding year.

https://www.dawn.com/news/2007197

This improvement was primarily driven by a 6.5pc rebound in Large-Scale Manufacturing (LSM), 8.5pc surge in Small-Scale Manu­facturing (SSM), and 6.2pc growth in slaughtering.

The manufacturing and mining sectors are critical to Pakistan’s industrial base and jointly contribute 13.5pc to GDP. Within manufacturing, LSM plays a dominant role, accounting for 67.4pc of the sector and 8.2pc of GDP, followed by SSM and slaughtering, which contribute 2.5pc and 1.4pc to GDP, respectively.

However, the mining and quarrying sector posted a modest growth of 0.4pc in FY26, indicating a gradual recovery in extraction activities.


The survey has highlighted that LSM grew by 6.5pc during July-March 2025-26, indicating a broad-based revival in industrial activity, compared to a 1.9pc contraction in the same period last year, which was primarily a continuation of the contraction that began in FY23 due to import restrictions.

In March alone, LSM expanded by 11.1pc, compared with a contraction of 2.4pc a year ago.

Automobile sector

The survey said that the auto industry showed growth across all sectors during July-March FY26, except for farm tractor sector, where production and sales were down by 8pc and 13pc, respectively. Additionally, wartime conditions have significantly increased costs for local tractor OEMs.

The survey highlighted that the auto sector had seen rising investment and was adopting new technologies, and that the industry was well-positioned to maintain its growth trajectory.

Comment by Riaz Haq 18 hours ago

The following is a fintech and wider digital economic development view of the South Asian nation of Pakistan in 2026.

By Richie Santosdiaz

https://thefintechtimes.com/fintech-landscape-of-pakistan-in-2026/

Pakistan’s fintech story cannot be separated from the country’s wider economic challenges. For years, Pakistan has faced recurring balance-of-payments pressures, high inflation, currency volatility, fiscal constraints and the difficult task of expanding formal economic participation across a population of more than 240 million people. These structural pressures have shaped almost every part of the economy, including financial services.

That is why fintech in Pakistan matters. It is not simply about digital wallets, payment apps or startup valuations. It is about whether technology can help make one of South Asia’s largest economies more efficient, more inclusive and more formalised.

“Is Fintech the Key to Economic Revival in Pakistan?”was written by me and it highlighted how fintech could support financial inclusion, digital payments, small and medium enterprise (SME) finance, remittances and broader economic recovery. That argument remains highly relevant today, particularly as Pakistan continues trying to move more economic activity into formal and digital channels.

Pakistan’s economic scale is significant. Pakistan’s gross domestic product (GDP) stood at around $371.6billion in 2024, while GDP per capita was approximately shy of $1,500. The economy is supported by agriculture, textiles, manufacturing, services, remittances, construction, telecommunications and a large informal sector, all according to the World Bank. Karachi remains the country’s financial centre, Lahore is a major commercial and technology hub, and Islamabad serves as the political and regulatory capital.

Yet Pakistan’s biggest fintech opportunity may lie outside its formal banking system. Millions of people remain underbanked or financially excluded. The World Bank’s Global Findex Database continues to highlight the importance of account ownership, digital payments and mobile-enabled finance in expanding financial inclusion globally. In Pakistan, the gap between population size and formal financial usage remains one of the most important development challenges facing the sector.

This is where digital finance can have an outsized impact. A bank branch-based model alone cannot serve Pakistan’s entire population efficiently. Geography, income levels, informality and documentation barriers all limit traditional banking reach. Digital wallets, agent networks, mobile accounts and instant payments therefore offer a more scalable path to inclusion.

Payments are the clearest example. Pakistan has spent the past several years building the foundations for a more digital payments economy. The State Bank of Pakistan’s Raast Instant Payment System has become one of the country’s flagship financial infrastructure initiatives, designed to enable low-cost, real-time digital payments between individuals, businesses and government entities. The creation of Raast Payments Pakistan Pvt. Ltd. further signals the central bank’s ambition to institutionalise and expand the country’s digital payments infrastructure.

This infrastructure matters because payments sit at the heart of formalisation.

When salaries, merchant transactions, remittances, utility bills and government payments move digitally, they create records. Those records can support credit scoring, taxation, consumer protection and better financial planning. In a country where cash and informality remain deeply embedded, digital payments can gradually change the structure of economic participation.

Comment by Riaz Haq 2 hours ago

Pakistan’s Rs 328 billion major appliance market is recovering rapidly, led by Air Conditioners (23% share, ~190B) and Refrigerators (56%). Driven by rising temperatures, expanding solar power, and economic stability, PAEL projects 20% growth in CY2026, with sales expected to exceed 105,000 ACs and 339,000 refrigerators. [1, 2, 3, 4]

The market is fiercely competitive, dominated by local and international manufacturing giants. Key dynamics and brands include: [1, 2, 3]

• Market Leaders: Top players like Haier, Dawlance, and Pak Elektron (PAEL) command the majority of the market. [1]
• Air Conditioners: This is the fastest-growing major appliance segment. Waves Corporation is aggressively expanding back into this category using Completely Knocked Down (CKD) strategies to avoid import bottlenecks. [1]
• Deep Freezers: Waves retains a ~40% market share, with PAEL holding another 15%. [1, 2]
• Refrigerator Penetration: Household penetration remains at 51%, leaving substantial long-term growth potential for manufacturers. [1]
• Solar Integration: The rise in distributed solar generation is driving notable shifts in appliance demand, allowing consumers to efficiently run cooling appliances (fans, ACs) during daylight hours. [1]

Comment by Riaz Haq 2 hours ago

India’s electrification rate is nearly 20%, comparable to China’s level in 2012, and is growing relentlessly by around five percentage points per decade.

https://ember-energy.org/latest-insights/indias-electrotech-fast-tr...

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