PAKISTAN’S vulnerability to external energy shocks is no secret. The ongoing disruptions of LNG supplies caused by the Middle East conflict have only reinforced that as well as the risks to an economy dependent on imported energy. If anything, the current crisis should force a rethink of the country’s energy policy. Pakistan must accelerate the transition to renewables to reduce its vulnerability to imported fuels. This is exactly what the latest Gastech Conference report has suggested. The rooftop-solar boom has shown what consumer initiative can achieve. Thousands of homes and businesses have installed systems to reduce reliance on expensive grid electricity, increasing distributed generation and helping lower daytime consumption during the summer cooling season. This has been particularly useful amid disrupted LNG supplies. The government should build on this consumer-led transition. The next phase, however, must be better designed. Solar panels alone cannot resolve our energy woes. Their output falls sharply after sunset, when household demand rises, especially in summer. Without storage, the grid remains dependent on gas and other fossil fuels to meet evening peaks.

Government incentives should therefore increasingly support solar-plus-storage systems. Affordable financing, targeted tax relief and easier access to batteries will encourage households and businesses to store surplus daytime electricity for use at night. The policy must also address equity. Households able to afford solar systems can reduce their reliance on the grid, while poorer consumers may continue to bear a disproportionate share of fixed network costs. A poorly managed transition will deepen this divide. The government must ensure that the benefits of decentralised generation are not limited to those with substantial upfront capital. One way to broaden access is to encourage small, home-based neighbourhood solar grids. Households with surplus electricity and battery capacity could supply nearby consumers under regulated arrangements. This would allow power to be generated, stored and consumed closer to where it is needed. Reducing fossil-fuel dependence also has important economic implications. Greater use of domestic renewable resources can reduce exposure to volatile global prices and shipping disruptions while conserving foreign exchange. For an economy repeatedly facing external financing pressures, this is especially important.

Published in Dawn, September 20th, 2026