Recent developments in Pakistan highlight significant shifts in energy use and security threats. The country is navigating complex challenges and opportunities.
Who is involved
In recent years, Pakistan has faced a multitude of challenges and opportunities that have significantly altered its socio-economic landscape. Historically, the country has been heavily reliant on fossil fuels, with energy systems closely tied to global supply routes, particularly through the Strait of Hormuz. This dependence has made 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 energy revolution in the country. As of 2025, a remarkable 25% of Pakistani households are now utilizing solar panels, a significant increase from just 2.9% in 2020. This shift has been driven by the plummeting prices of solar panels, now at about 30 rupees (approximately $0.10) per watt, making solar energy more accessible to the average consumer.
The immediate effects of this solar boom are profound. With over 280,000 households adopting net-metering, Pakistan has managed to save more than $12 billion in fuel imports since 2018. This transition not only alleviates the financial burden on the country but also contributes to a more sustainable energy future. As noted by Rabia Babar, “Pakistan’s solar revolution wasn’t planned in Islamabad – it was built on rooftops.” This grassroots movement reflects a significant shift in how energy is perceived and utilized in the nation.
On the security front, however, Pakistan faces ongoing threats that complicate its progress. Recently, Uttar Pradesh Police arrested four suspected handlers of an ISI-linked terror module in Lucknow, who were allegedly planning to trigger blasts at key locations, including railway stations. The head of this gang, Saquib, was reportedly in contact with his Pakistani handlers through social media, highlighting the persistent security challenges that Pakistan must address.
Pakistan’s geopolitical landscape is further complicated by its economic ties with the UAE. Senator Mushahid Hussain has raised concerns over the growing relationship between India and the UAE, suggesting that friendly ties with the UAE may not be beneficial for Pakistan, as he stated, “Friendly ties with them do not land you up as part of Akhand Bharat.” This sentiment underscores the delicate balance Pakistan must maintain in its foreign relations while managing internal security threats.
As Pakistan prepares to repay around $3.5 billion to the UAE, originally extended in 2019, the financial implications of these relationships cannot be overlooked. The country is navigating a complex web of economic dependencies and security threats that could impact its stability and growth.
Amidst these challenges, the solar energy sector continues to thrive. The government has recently reduced the buyback rate for new net-metering users to about 10 rupees (approximately $0.036) per unit, which may affect the profitability of solar investments but is also a strategic move to encourage broader adoption of renewable energy. Karim Baksh, a local solar user, expressed a shift in mindset, stating, “Now, I don’t care if the prices of diesel increase,” reflecting a growing confidence in renewable energy solutions.
In summary, Pakistan stands at a crossroads where significant advancements in renewable energy are juxtaposed with pressing security concerns. As the country continues to evolve, the interplay between these factors will shape its future trajectory. Details remain unconfirmed regarding the full impact of these developments, but the implications for both energy and security are clear and significant.
