“Pakistan-China cooperation in green energy is gaining momentum. We are working to establish South Asia’s first electric taxi fleet in Islamabad, and we will sign an agreement with Beijing Automotive Group (BAIC) to enable more electric vehicles to be assembled in Pakistan,” said Khalid Mahmood, former Secretary of Pakistan’s Parliamentary Committee -CPEC and CEO of two privately owned car companies in Pakistan, in a recent interview with China Economic Net.

Pakistan is swiftly shift toward consumer-driven distributed renewable energy. With 38 GW of solar already installed across the country, rapidly growing battery adoption, and increasing EV uptake, Pakistan’s power system is entering a new phase of electrification. According to Renewables First, a think tank, the country had avoided more than USD 12 billion in oil and gas imports by February this year that would otherwise have been needed to meet domestic energy demand. It estimates that at the prices the market expects for this year, Pakistan could save a further USD 6.3 billion by the end of the year.

This transition has been made possible through more than a decade of sustained investment, driven in large part by a market-led revolution enabled by Chinese manufacturing.

According to KTrade Securities, approximately 13 GW of power capacity were added through CPEC early cooperation projects. Prior to CPEC, Pakistan faced electricity shortfalls exceeding 4,500 MW, with blackouts lasting up to 18 hours per day in some areas – reducing estimated annual GDP by 2–2.5%. By December 2017, Pakistan achieved a surplus in electricity production for the first time.

Chinese FDI into Pakistan’s power sector reached USD 1,165.7 million in FY 2024–25, including USD 759.4 million in hydroelectric projects alone reflecting a clear accelerating trend. Currently, 60 private-sector renewable projects under PPIB contribute 4,753 MW to the national grid.

Source: China Economic Net