Business Politics

Pakistan’s Energy Revolution and Security Concerns: A Dual Narrative

  • April 7, 2026
  • 3 min read
Pakistan’s Energy Revolution and Security Concerns: A Dual Narrative

Who is involved

In recent years, Pakistan has been at a crossroads, facing both a burgeoning solar energy sector and escalating security threats. Historically, the country has relied heavily on fossil fuels, with energy systems tightly linked to global supply routes, particularly through the Strait of Hormuz. This dependency has often left Pakistan vulnerable to fluctuations in global oil prices and geopolitical tensions.

However, a decisive moment came with the introduction of a net-metering policy in 2015, which catalyzed a solar boom. By 2025, a remarkable 25% of Pakistani households are projected to utilize solar panels, a significant leap from just 2.9% in 2020. The price of solar panels has plummeted to about 30 rupees (approximately $0.10) per watt, making renewable energy more accessible to the average consumer. This shift has not only empowered households but has also helped the nation save over $12 billion in fuel imports since 2018.

On the other hand, the security landscape in Pakistan remains precarious. Recently, the Uttar Pradesh Police arrested four suspected handlers of an ISI-linked terror module in Lucknow, who were allegedly planning to execute blasts at key locations, including railway stations. The head of this gang, identified as Saquib, was reportedly in contact with his Pakistani handlers via social media. This incident underscores the ongoing threat of terrorism that Pakistan faces, which complicates its efforts to stabilize and grow economically.

As Pakistan navigates these dual narratives, the implications for its international relations are profound. Senator Mushahid Hussain has voiced concerns regarding the growing relationship between India and the UAE, suggesting that friendly ties with the UAE could inadvertently position Pakistan as part of a broader geopolitical strategy, which he refers to as “Akhand Bharat.” The need for Pakistan to repay around $3.5 billion to the UAE, originally extended in 2019, adds another layer of complexity to its diplomatic engagements.

Experts like Rabia Babar emphasize that Pakistan’s solar revolution was not orchestrated by policymakers in Islamabad but rather emerged organically from the grassroots level. “Pakistan’s solar revolution wasn’t planned in Islamabad – it was built on rooftops,” she notes, highlighting the role of individual households in driving this change. The rapid growth of solar energy adoption, with over 280,000 households now engaged in net-metering, reflects a significant shift in energy consumption patterns.

Moreover, the affordability of solar energy has led to a change in public sentiment. As Karim Baksh, a local resident, puts it, “Now, I don’t care if the prices of diesel increase.” This sentiment indicates a growing confidence in renewable energy solutions, which could potentially reduce the country’s reliance on imported fuels and enhance energy security.

However, the juxtaposition of these advancements in renewable energy against the backdrop of security threats presents a complex challenge for Pakistan. While the solar boom offers a pathway to economic resilience and sustainability, the persistent threat of terrorism necessitates a robust security framework. The government’s recent decision to reduce the buyback rate for new net-metering users to about 10 rupees (approximately $0.036) per unit may also impact the growth trajectory of the solar sector, as financial incentives play a crucial role in consumer adoption.

In summary, Pakistan stands at a pivotal moment where the promise of renewable energy is tempered by the realities of security challenges. The path forward will require a delicate balance between fostering economic growth through sustainable practices and ensuring the safety and security of its citizens. As the country continues to evolve, the interplay between these two narratives will shape its future on both the domestic and international stages.