Pakistan’s solar revolution leaves its middle class behind

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Updated 29 April 2025
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Pakistan’s solar revolution leaves its middle class behind

  • Affluent Pakistanis buy cheap Chinese solar panels to counter rising electricity tariffs
  • Most solar panels aren’t connected to sell excess capacity to grid so benefits aren’t widely shared

KARACHI: Amid the forty-degree heat that paralyzed the coastal city of Karachi in April, Saad Saleem blasted his air-conditioning with near-abandon.
Electricity tariffs have surged, but the affluent entrepreneur has been unbothered since he spent $7,500 installing solar panels on his bungalow’s roof as part of a solar boom in Pakistan.

Saleem bought his modules two years ago, as the International Monetary Fund and economically beleaguered Pakistan were hammering out a preliminary bailout program. Under the deal, Pakistan sharply raised power and gas tariffs to support struggling suppliers in the heavily indebted sector.

Pakistanis now pay more than a quarter more on average for electricity, setting off a scramble to install solar modules.

Solar made up over 14 percent of Pakistan’s power supply last year, up from 4 percent in 2021 and displacing coal as the third-largest energy source, according to UK energy think-tank Ember. That is nearly double the share in China, the world’s top supplier of solar panels and a global leader in green technologies, and one of the highest rates in Asia, according to Reuters’ analysis of Ember data.

But the explosion in solar uptake has left out many in Pakistan’s struggling urban middle class, who have been forced to cut back on electricity in face of soaring bills, according to interviews with more than two dozen people, including energy officials, consumers and power-sector analysts. Most of the nation’s solar panels aren’t connected to sell excess capacity to the grid, so the benefits of cheap and reliable power aren’t widely shared.The flight of affluent Pakistanis with solar access from the national grid has dealt a further blow to those relying on pricey conventional sources of power. Electricity companies that lost their most lucrative clients have been forced to additionally hike prices on their shrinking pool of customers to cover operating costs, according to Arzachel, a Karachi-based energy consultancy. 




Syed Fahim Ali, 30, uses a wiper to clean the solar panels installed on the roof top of his home, in Karachi, Pakistan April 5, 2025. (Reuters)

Some observers also blame financial stress in the energy sector on deals Pakistan made with China for Beijing to finance billions of dollars’ worth of power-generation contracts, many of which involve coal-fired plants. Pakistan is behind on many of the payments and has been in talks with China about extending the time it has to repay the debt. 

Countries like South Africa also face widening energy gaps after affluent residents adopted solar power. But analysts are watching Pakistan particularly closely due to the pace at which the nation of 250 million has taken to sun-based energy.

“This could serve as a cautionary tale as to how regulation and policy needs to keep up with technological change and rapidly evolving economics,” said Haneea Isaad, an Islamabad-based energy finance specialist at the Institute for Energy Economics and Financial Analysis.

In an interview with Reuters, Pakistan power minister Awais Leghari acknowledged the energy gap but noted that tariffs have come down significantly since June 2024, when the IMF approved reductions.

He also pointed to heavy uptake of solar by rural Pakistanis, many of whom previously had limited access to the grid. Many non-urban Pakistanis have installed small solar setups to meet their power needs, which are typically far lower than those of their city-dwelling counterparts.

“Pakistan has actually gone through a solar revolution,” he said. “The grid is going to get cleaner by the day, and this is something that we’ve achieved as a nation that we are proud of.”
The IMF did not return requests for comment.

ENERGY DIVIDE

Just a few miles away from Saleem’s upscale neighborhood, Nadia Khan has restructured her life to cut electricity costs.

The air-conditioning in the homemaker’s apartment is rarely used and she’s stopped ironing most of the clothes worn by her family of five, citing the price of power.

Khan’s family is not alone in cutting back: Only 1 percent of paying consumers used over 400 units of power in 2024, per Karachi-based consultancy Renewables First, down from 10 percent before the pandemic.

Like others among Pakistan’s masses of apartment dwellers without space to install solar modules, Khan has been shut out of the revolution.

The roofs of many apartment buildings are designated for water storage and other sanitation purposes, while owners of rental buildings have little incentive to invest in solar connections for their tenants.

“We get some sunlight indoors but I can’t seem to think of a way to go solar,” she said. “Why must people living in apartments suffer?“

Meanwhile, land-owning Pakistanis have benefited from the glut of Chinese-made low-cost solar modules shut out of the West by high tariffs.




A worker unloads solar panels from a vehicle at a market, in Karachi, Pakistan March 26, 2025. (Reuters)

China exported 16.6 gigawatts of solar capacity to Pakistan last year, according to Ember, about five times as much as in 2022. The average cost per watt of solar-module capacity exported also fell 54 percent in the same period.

However, most solar setups aren’t configured to send spare power back to the grid, limiting their benefit to the wider public. Renewables expert Syed Faizan Ali Shah, who advises the government on solar adoption, has said that less than 10 percent of solar consumers sell excess power to the grid.

Experts and government officials blame high costs and sanctioning delays. Connecting a solar module to the grid usually takes between three and nine months, said Renewables First energy expert Ahtasam Ahmad, prompting many to not bother.

Converting power generated from a solar panel for transmission to the grid also requires equipment like inverters, which typically cost between $1,400 and $1,800, or roughly half the median household income in Pakistan.

SUNK COSTS

Pakistan conglomerate Interloop has installed hundreds of solar modules next to its cowsheds in Punjab province that help provide the electricity keeping its 9,300 livestock cool and their milk chilled.

The investment in solar has been a lucrative one for Interloop, which typically breaks even on solar installation costs after three to four years. Basic operating costs are about three quarters less than payments to the grid, said Interloop energy manager Faizan Ul Haq.

The money Interloop saves also reflects a gaping hole in the accounts of Pakistan’s power companies.




View of solar panels with cows in the background at an Interloop owned dairy farm, in Sheikhupura, Pakistan April 8, 2025. (Reuters)

Even though industrial groups and wealthier Pakistanis now consume less grid power, suppliers’ costs haven’t changed proportionately. Fixed expenses like fuel contracts and upgrades to transmission architecture accounted for about 70 percent of supplier expenditure in the year to June 2024, according to an Arzachel estimate.

To cover costs, suppliers have raised prices on their remaining customers, who have already faced repeated increases as a result of the IMF deal.

Fixed costs of 200 billion rupees were shifted to non-solar consumers in the 2023-2024 fiscal year, meaning they paid 6.3 percent more per kilowatt-hour than they otherwise would have, according to Arzachel data.

Solar panel imports have increased since, meaning grid demand is likely to continue dropping, forcing remaining customers to pay more.

“Pakistan’s experience demonstrates a crucial lesson: when governments fail to adapt quickly enough, people take charge,” said Ahmad of Renewables First.


UN estimates 2.5 million refugees will need resettling in 2026 from Pakistan, other countries

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UN estimates 2.5 million refugees will need resettling in 2026 from Pakistan, other countries

  • The largest refugee populations likely to be resettled were Afghans, Syrians, South Sudanese, Rohingya from Myanmar, and Congolese
  • Part of the decline in resettlement is linked to the US, long the world’s biggest resettler of refugees, which has now shut its doors

GENEVA: An estimated 2.5 million refugees worldwide will need to be resettled next year, the UN said Tuesday, at a time when the United States but also other nations are shrinking resettlement access.

UNHCR, the United Nations’ refugee agency, said the needs were down slightly from this year, when around 2.9 million refugees are estimated to need resettlement.

“This is mainly due to the changed situation in Syria, which has allowed for voluntary returns,” UNHCR spokeswoman Shabia Mantoo told reporters in Geneva.

“We are seeing some people pull out of resettlement processes in favor of plans to go home to rebuild,” she added.

Mantoo said that in 2026, the largest refugee populations likely to need to be resettled were Afghans, Syrians, South Sudanese, Rohingya from Myanmar, and Congolese.

Most of the refugees will need resettling from major host countries including Iran, Turkiye, Pakistan, Ethiopia and Uganda, she said.

The announcement came as the UNHCR’s resettlement efforts face towering hurdles.

“In 2025... resettlement quotas are expected to be the lowest in two decades, falling below the levels seen even during the Covid-19 pandemic, when many countries paused their programs,” Mantoo said.

Part of the decline is linked to the United States — long the world’s biggest resettler of refugees — which has now slammed its doors shut.

Shortly after returning to the White House in January, President Donald Trump halted the US refugee resettlement program.

Trump’s predecessor Joe Biden had embraced the program designed to facilitate legal resettlement of vetted refugees, resettling over 100,000 refugees in the United States last year.

Mantoo stressed though that the problem was not with just one country.

“We have indications that a number of countries are reducing or adjusting quotas,” she said.

Stressing that resettlement among other things “offers a concrete alternative to dangerous journeys,” Mantoo urged countries to “sustain their programs and increase their intake.”

In recognition that the needs far outstrip the available spots, she said that the international community had set itself a goal of resettling 120,000 refugees in 2026.

“Recent history shows that this is achievable,” she said.

Last year, she said that despite the challenges, the UNHCR supported the resettlement of 116,000 refugees globally.

“Every place is invaluable for those fleeing danger.”

Earlier this month UNHCR said a record 123.2 million people worldwide were forcibly displaced from their homes at the end of 2024.

But that figure dropped to 122.1 million by the end of April this year, as Syrians began returning home after years of turmoil.


PM hosts Pakistani delegates for successfully presenting Islamabad’s case on India crisis

Updated 10 min 47 sec ago
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PM hosts Pakistani delegates for successfully presenting Islamabad’s case on India crisis

  • Pakistan, India engaged in a military conflict last month that saw the neighbors attack each other with drones, missiles and artillery
  • Pakistani delegates this month visited key capitals to apprise them of India’s unilateral moves, including suspension of key water treaty

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday hosted a dinner in honor of a Pakistani delegation, led by former foreign minister Bilawal Bhutto-Zardari, that presented Islamabad’s stance on recent crisis with India before key world capitals.

Pakistan and India engaged in a four-day military conflict last month that saw the two neighbors attack each other with drones, missiles and artillery in their worst fighting in decades.

The conflict had raised fears of a full-blown war between the nuclear-armed neighbors who agreed to a United States-brokered ceasefire on May 10, with the conflict killing nearly 70 people on both sides.

Bhutto-Zardari led Pakistan’s mission to the US, United Kingdom and Europe to apprise the world powers of Indian unilateral actions, including the suspension of a World Bank-brokered water-sharing treaty with Pakistan.

“The delegation presented the events from Pahalgam to the Indus Waters Treaty [suspension] in the right perspective and in a good manner,” Sharif said. “I hope that with the guidance, cooperation and suggestions of all of you, we will overcome all internal and external challenges.”

Other members of the Pakistani delegation included Sherry Rehman, Musadik Malik, Hina Rabbani Khar, Bushra Anjum Butt, Faisal Sabzwari, Khurram Dastgir and Jalil Abbas Jilani.

On Monday, Bhutto-Zardari said Islamabad had defeated New Delhi on the “battlefield, in diplomacy, and in the war of narratives.”

“India has two options: share water fairly or we will deliver water to us from all six rivers [of the Indus basin],” Bhutto-Zardari said, while addressing the lower house of Pakistan parliament.

“The attack on Sindhu [Indus river] and India’s claim that the IWT has ended and it’s in abeyance, firstly, this is illegal, as the IWT is not in abeyance, it is binding on Pakistan and India but the threat itself of stopping water is illegal according to the UN charter.”

His comments followed a statement from Indian interior minister Amit Shah in which he said they would take the water that was flowing to Pakistan to the Indian state of Rajasthan by constructing a canal.

“Pakistan will be starved of water that it has been getting unjustifiably,” Shah told Times of India newspaper.

The IWT grants Pakistan rights to the Indus basin’s western rivers — Indus, Jhelum, and Chenab — for irrigation, drinking, and non-consumptive uses like hydropower, while India controls the eastern rivers — Ravi, Beas, and Sutlej — for unrestricted use but must not significantly alter their flow. India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes, according to the agreement.

Islamabad is also exploring a legal challenge to India’s decision to hold the treaty in abeyance under international law.

Last month’s conflict between Pakistan and India was triggered by a militant attack in Indian-administered Kashmir’s Pahalgam town.

India accused Pakistan of backing the assault that killed 26 tourists on April 22 and suspended the Indus Waters Treaty, which ensures water for 80 percent of Pakistani farms, among a slew of punitive measures.

Islamabad denied the allegation and offered to join a credible, international probe into the Kashmir attack, followed by its own set of diplomatic measures against New Delhi.


Pakistan PM discusses Middle East crisis with Saudi Crown Prince, calls for de-escalation

Updated 24 June 2025
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Pakistan PM discusses Middle East crisis with Saudi Crown Prince, calls for de-escalation

  • Heightened tensions after Iranian missile attack on US base in Qatar spark fears of wider Gulf conflict
  • Sharif also holds third call with Iranian president in as many days, urges diplomacy to restore peace

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Tuesday spoke by phone with Saudi Crown Prince Mohammed bin Salman to discuss the situation in the Middle East amid escalating tensions between Iran and Israel.

The call followed Israeli and United States strikes on Iran and Tehran’s retaliatory missile attack on a US base in Qatar on Tuesday. Qatar condemned the Iranian strikes as a “flagrant violation” of its sovereignty, raising fears the crisis could draw in other regional powers if not defused.

During the call, Sharif said Pakistan supported immediate de-escalation of the Iran-Israel conflict and its peaceful resolution through dialogue and diplomacy.

“While referring to last night’s attacks, he called for adherence to international law and the UN Charter principles by all sides,” Sharif’s office said after the telephone discussion with the Saudi Crown Prince. “In this context, the Prime Minister reaffirmed Pakistan’s unwavering support for the Kingdom’s sovereignty and territorial integrity.”

Sharif also praised the Saudi crown prince’s efforts to restore calm, describing them as reflective of the kingdom’s leadership role in the Muslim world and its position as a peacemaker, according to his office.

The crown prince, for his part, appreciated Pakistan’s show of solidarity and acknowledged Islamabad’s constructive role in supporting a peaceful resolution to the conflict.

“His Royal Highness said that the Kingdom of Saudi Arabia was fully committed to efforts aimed at fostering lasting peace and stability in the Middle East,” Sharif’s office said.

On Monday, US President Donald Trump said Israel and Iran had agreed to a “complete and total ceasefire” to be phased in over 24 hours. However, Israel warned of possible missile launches from Iran early Tuesday, and the launches began after 4am local time in Tehran.

Iranian Foreign Minister Abbas Araghchi said Iran would halt its attacks if Israel ended its airstrikes.

It was unclear how the latest developments would affect the planned ceasefire.

Separately on Tuesday, Sharif held a third phone call in as many days with Iranian President Masoud Pezeshkian and again urged dialogue and diplomacy to restore peace in the region.

The crisis has left Islamabad navigating a delicate balance between ties with Iran, other Gulf partners and the United States, which remains one of Pakistan’s largest trading partners and a major source of military and economic assistance.

“The prime minister said that Pakistan was closely following the rapidly evolving situation in the Middle East,” Sharif’s office said after the call with Pezeshkian. “He reiterated Pakistan’s support for Iran at all diplomatic forums, including at the UN Security Council and the OIC [Organization of Islamic Cooperation], while calling for adherence to international law and the UN Charter principles.”


Army major among two soldiers, 11 militants killed in Pakistan’s restive northwest

Updated 24 June 2025
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Army major among two soldiers, 11 militants killed in Pakistan’s restive northwest

  • The casualties occurred during an intelligence-based operation in South Waziristan district, which borders Afghanistan
  • Pakistan and India often accuse each other of backing militant groups that launch cross-border attacks on the other’s soil

ISLAMABAD: Two Pakistani soldiers, including an army major, and 11 militants were killed in a shootout in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Tuesday.

The operation was conducted in KP’s South Waziristan district, which borders Afghanistan, on intelligence reports about the presence of “Indian-sponsored” militants, according to the Inter-Services Public Relations (ISPR), the military’s media wing.

The intense exchange of fire killed 11 militants and injured seven others. The shootout also left two Pakistani soldiers, Major Moiz Abbas Shah and Lance Naik Jibran Ullah, dead.

“Sanitization operation is being conducted to eliminate any other Indian-sponsored kharji [militant] found in the area,” the ISPR said in a statement.
Pakistan and India often blame each other for supporting militancy.

Islamabad accuses India of backing a separatist insurgency in Pakistan’s southwestern Balochistan province as well as religiously motivated militant groups, like the Pakistani Taliban, in KP. India denies the allegations.

Pakistan has struggled to contain a surge in militancy in KP since a fragile truce between the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), and Islamabad broke down in late 2022. The TTP and other militant groups have frequently targeted security forces convoys and check-posts, besides targeted killings and kidnappings of law enforcers and government officials in the region in recent months.

In a statement, Prime Minister Shehbaz Sharif paid tribute to Major Shah and Lance Naik Jibran Ullah for thwarting the evil designs of the enemy.

“We will continue the fight against the scourge of terrorism until it is completely eradicated from the country,” he said. “The entire nation, including me, stands by our Pakistani forces in their unwavering resolve to protect the homeland.”


In call with Iran president, Pakistan PM urges dialogue to restore peace in Middle East

Updated 24 June 2025
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In call with Iran president, Pakistan PM urges dialogue to restore peace in Middle East

  • The development came a day after Tehran attacked a US base in Qatar in retaliation for airstrikes on its nuclear facilities
  • The crisis appeared to put Islamabad in a difficult position to balance its equation with Iran, other Gulf partners, and the US

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday spoke with Iranian President Masoud Pezeshkian for the third time in as many days and urged dialogue and diplomacy to restore peace in the Middle East, Sharif’s office said.

The development came a day after Tehran attacked a United States (US) base in Qatar in retaliation for US airstrikes on three Iranian nuclear facilities late last week. The US strikes followed days of Israeli attacks on Iran’s nuclear program and military leadership.

Qatar condemned the Iranian missile attack and called it a “flagrant violation” of its sovereignty, saying it reserved the right to respond directly and in accordance with the international law. The Iranian attack raised fears about a wider conflict in the already volatile region.

The crisis appeared to put Islamabad in a difficult position to balance its equation with Iran, other Gulf partners, and the US, which remains one of Pakistan’s largest trading partners and a critical source of military and economic assistance.

“The prime minister said that Pakistan was closely following the rapidly evolving situation in the Middle East. He emphasized the importance of restoring peace through dialogue and diplomacy,” Sharif’s office said after his telephonic conversation with the Iranian president.

“He reiterated Pakistan’s support for Iran at all diplomatic forums, including at the UN Security Council and the OIC [Organization of Islamic Cooperation], while calling for adherence to international law and the UN Charter principles, by all sides.”

The development came hours after US President Donald Trump said that Israel and Iran had agreed to a “complete and total ceasefire” to be phased in over 24 hours.

But Israel warned its public to take shelter after detecting missile launches from Iran early Tuesday. The launches came after 4am local time in Tehran, the time Iranian Foreign Minister Abbas Araghchi said Iran would stop its attacks if Israel ended their airstrikes.

It was unclear yet how the latest developments would impact the possible ceasefire agreement.

President Pezeshkian appreciated Pakistan’s consistent and principled support to Iran throughout the crisis, according to Sharif’s office.

“He also acknowledged Pakistan’s constructive role in promoting a peaceful resolution to the conflict,” it said. “The two leaders agreed on the importance of unity among the Ummah during this most challenging time. They agreed to remain in touch.”