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.


New warehouse fire breaks out in Karachi as factory blaze continues for second day

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New warehouse fire breaks out in Karachi as factory blaze continues for second day

  • Karachi hosts thousands of industrial units but struggles with outdated firefighting infrastructure
  • The new warehouse fire near Mauripur follows factory blaze in Landhi that injured five on Sunday

KARACHI: A fire broke out at an oil warehouse near Karachi’s Mauripur truck terminal on Monday, rescue officials said, as firefighters continued battling a separate blaze that erupted a day earlier at the city’s Landhi Export Processing Zone and has yet to be fully extinguished.
Karachi, Pakistan’s financial hub, is home to thousands of industrial units but suffers from outdated firefighting infrastructure and lax safety enforcement.
“Fire and rescue teams were dispatched with one ambulance and two fire brigade trucks immediately upon receiving the alert,” Rescue 1122 said in a statement. “Efforts are under way to bring the blaze under control.”
Meanwhile, firefighting operations at the Landhi zone, which began on Sunday, entered their second day, with flames still active inside some of the affected factories.
Authorities said the fire has been partially contained but full extinguishment and cooling may take additional time.
At least five people were injured on Sunday after part of a building collapsed at the industrial site, which houses multiple textile factories, officials confirmed.
The injured were moved to a nearby hospital.
A total of 11 fire brigade trucks and a snorkel were involved in efforts to control the blaze, which were hindered by thick smoke and water shortages in the city of over 20 million.
Hundreds of fire incidents are reported every year in Karachi.
Last November, a shopping mall blaze killed a dozen people.
In April 2023, four firefighters died responding to a garment factory fire, and in 2021, a chemical factory blaze claimed 10 lives.
The deadliest such incident in the city’s history occurred in 2012, when 260 workers were killed in a garment factory fire.


Inside Islamabad’s thriving farmers market, where nature meets community

Updated 09 June 2025
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Inside Islamabad’s thriving farmers market, where nature meets community

  • 79 approved sellers selected through rigorous vetting process that includes soil and water testing, on-site visits to farms
  • Many vendors have been displaying at 12-year-old market for years, new entrepreneurs have also found their footing 

ISLAMABAD: Every Saturday morning, a quiet corner of Pakistan’s capital comes alive with the earthy scent of fresh produce, the hum of friendly chatter and the unmistakable feel of community. 

This is the Islamabad Farmers Market, now more than a decade old and having grown from a humble initiative into a thriving hub of sustainability, entrepreneurship, and local connection.

Launched in 2013 with just six vendors, the market now hosts 79 approved seller, each selected through a rigorous vetting process that includes soil and water testing as well as on-site visits to farms. 

The aim? To keep the food chain clean, ethical, and transparent.

“The main goal was to eliminate the middleman and help small-scale farmers and producers connect directly with customers,” said Ali Raza, a representative of the market. “Today, we have created a trusted space for clean, organic, and ethical products.”

Each stall at the market tells a different story. Beneath canopies strung with fairy lights and shaded by leafy trees, you’ll find everything from heirloom tomatoes and farm-fresh eggs to artisan sourdough and wild honey from the mountains.

Among the market’s earliest supporters is Naghma, a 70-year-old anthropologist and environmentalist who only gave her first name. 

A regular since its inception, she now sells her homemade hummus and baba ghanoush, an Arab eggplant dip, prepared with hand-ground tahini, alongside a variety of other organic spreads.

“I come here every Saturday with three bags and go back with five or six,” she laughed. “I buy all my raw materials here.”

For Naghma, organic eating is more than a preference, it’s a lifelong passion rooted in gardening and the rhythms of the seasons.

“I follow seasons because organic by definition is seasonal,” she said. “So, I make French Boursin cheese. My products, I call them ‘Les Deli De Naghma,’ so there’s a definite French touch.”

The Farmers Market has also become a vital platform for small-scale growers not just from Islamabad, but also more remote northern areas of the country such as northern Gilgit-Baltistan.

Sherazam, the founder of Hunza Organic, is one such vendor who has been displaying at the market for over a decade. On his table: ruby-red dried cherries, sun-cured apricot oil, and jars of thick wild honey, all harvested by hand and brought straight from the mountains.

“Our clientele knows that our products are pure. Many others also source their raw materials from us,” he told Arab News.

Sherazam said his business model was deeply community-driven.

“In Hunza, everyone farms. The women in my village produce these items, and we handle the packaging in Islamabad,” he added.

“RELIABLE, FRESH, FAMILY-FRIENDLY“

New entrepreneurs are also finding their footing at the Islamabad Farmer’s market. 

Waleed Noor Malik, representing “Guy Knows Food,” a popular kimchi brand, said the market had helped launch their business and acted as an accelerator. 

“We started selling kimchi here because we couldn’t find a brand in Pakistan that matched our taste,” he said. “Sampling at the market really helps build our brand. People try it here and often follow up on social media.”

Engineer-turned-farmer, who manages 300 beehives and a young olive orchard near Taxila, shared a similar experience. His small-batch raw honey and extra virgin olive oil are bottled with care and sold directly to those who seek quality over mass production.

“It’s not easy to compete with bulk commercial sellers, but here, people appreciate authenticity,” he said.

Raza, the curator of the market, said many of its vendors had started small, with just a few pots or a home kitchen and now had full storefronts.

“Many people in and around Islamabad, from Chak Shehzad and Barakahu, were producing and running small-scale farms but they didn’t have a platform to sell their fruits and vegetables. So, the main aim was to provide them with a platform,” he added. 

Much of the market’s success hinges on its rigorous commitment to quality. Vendors undergo lengthy screening processes, including environmental checks and farm inspections.

“We look for the soil test, water test, and then we do a site visit,” said Raza. “We make sure that no insecticides, pesticides, or urea are used.”

This transparency has earned the market a loyal following. Dr. Shanza Khan, a dentist and long-time visitor, summed it up simply: 

“The vendors are reliable, and their products are fresh. It’s a very family-friendly environment.”

More than a market, this is clearly a community garden in motion, where each bag of microgreens or bottle of honey is part of a larger story of connection and care for the land. And with the launch of an online platform, the market has extended its reach beyond Saturdays, giving customers access to their favorite organic products throughout the week. For vendors, this means steadier sales and greater visibility in a growing wellness economy.

Another attraction lies at the far end of the market, where food and coffee stalls beckon with the smell of sourdough sandwiches, artisanal cheese, and specialty brews. Some mornings, live music plays in the background, or a spontaneous art therapy session spills onto the grassy space beside the Dino Park. Children run through the park’s dino sculptures while parents sip cappuccinos under the trees.

Mahnoor Omer, a lawyer and regular visitor, has made coming here a weekly ritual. 

“Coffee, sourdough, cheese sandwiches, and sometimes, spontaneous catch-ups with friends,” she said, smiling. 

“It’s a great outlet for home-based growers and vendors from northern areas to bring their produce straight to our kitchens.”


Pakistan National Assembly speaker meets Saudi crown prince, urges deeper ties at Hajj luncheon

Updated 09 June 2025
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Pakistan National Assembly speaker meets Saudi crown prince, urges deeper ties at Hajj luncheon

  • Pakistan National Assembly speaker meets Saudi crown prince, urges deeper ties at Hajj luncheon
  • The Crown Prince reaffirmed his commitment to addressing challenges facing the Muslim world

ISLAMABAD: Pakistan’s National Assembly Speaker Sardar Ayaz Sadiq met Saudi Crown Prince Mohammed bin Salman on Sunday at a luncheon hosted for Muslim leaders visiting the Kingdom for Hajj, expressing hope for even stronger ties between the two countries, according to an official statement.
The meeting underscored a longstanding relationship rooted in economic, diplomatic and military cooperation.
Saudi Arabia has repeatedly come to Pakistan’s aid during financial crises, including through multibillion-dollar deposits in Pakistan’s central bank and deferred oil payment facilities in the past. Such support has helped Islamabad shore up its foreign currency reserves and even unlock International Monetary Fund (IMF) bailout programs during periods of acute external financing pressure.
“Saudi Arabia has always stood by Pakistan in times of adversity,” Sadiq said during the meeting, thanking the crown prince for Riyadh’s consistent backing.
“We hope that ties between Pakistan and Saudi Arabia will grow even stronger,” he added.
According to the National Assembly, Crown Prince Mohammed bin Salman reiterated his commitment to addressing challenges facing the Muslim world.
The speaker’s meeting follows a two-day trip to the Kingdom last week by Prime Minister Shehbaz Sharif, who performed Umrah alongside Army Chief Field Marshal Syed Asim Munir and other senior officials.
During the visit, Sharif thanked Saudi leadership for its role during last month’s military standoff between Pakistan and India and praised Riyadh’s efforts to promote regional and global stability.
Pakistan and Saudi Arabia have also been expanding their economic ties.
In October last year, the two countries signed business-to-business agreements and memoranda of understanding worth $2.8 billion aimed at boosting trade and investment.


Pakistan to unveil economic survey today as National Assembly clears federal budget schedule

Updated 09 June 2025
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Pakistan to unveil economic survey today as National Assembly clears federal budget schedule

  • The economic survey outlines key socio-economic achievements and shortfalls of an outgoing fiscal year
  • The federal budget is scheduled for a vote on June 26, a day before supplementary grants are finalized

KARACHI: Pakistan’s finance chief, Muhammad Aurangzeb, will present the Economic Survey 2024-25 today, Monday, a day after the National Assembly approved the schedule for the upcoming federal budget, according to the state media.

Traditionally released a day before the budget announcement, the economic survey outlines key socio-economic achievements and shortfalls of an outgoing fiscal year. It serves as a snapshot of the country’s economic performance across sectors such as agriculture, industry, services, energy, information technology and telecom, health, education and transport.

The annual document also reviews trends in major economic indicators including inflation, trade and payments, public debt, population, employment, climate change and social protection. Invitations for the launch ceremony at the Pakistan Secretariat in Islamabad were circulated by the finance ministry on Sunday.

“Finance Minister Muhammad Aurangzeb will release the Economic Survey 2024-25 at a ceremony to be held in Islamabad on Monday,” the Radio Pakistan reported.

Meanwhile, the state-run Associated Press of Pakistan (APP) news agency said Speaker of the National Assembly Sardar Ayaz Sadiq had approved the schedule for the upcoming budget sessions for the 2025–26 fiscal year.

According to the schedule, the federal budget will be presented on June 10, followed by a two-day recess. A general debate will begin on June 13 and continue through June 21, with time allocated for all parliamentary parties in line with Assembly rules.

No sitting will be held on June 22. Charged expenditures for the next fiscal year will be taken up on June 23, followed by discussions and voting on Demands for Grants and Cut Motions on June 24 and 25.

The Finance Bill 2025 is scheduled for a vote on June 26, and supplementary grants and related matters will be finalized on June 27.

The federal budget will be announced as Pakistan navigates a fragile economic recovery under a $7 billion International Monetary Fund (IMF) program.

The country’s annual inflation rate rose to 3.5% in May, though officials say the macroeconomic outlook has improved on the back of a stronger current account balance and increased remittances.

Planning Minister Ahsan Iqbal recently said the government had earmarked Rs1 trillion ($3.5 billion) for development projects in the upcoming budget.

Authorities have pledged to maintain macroeconomic stability, advance structural reforms and ensure growth translates into inclusive progress.


Pakistan to unveil Economic Survey 2024-25 on Monday

Updated 09 June 2025
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Pakistan to unveil Economic Survey 2024-25 on Monday

  • The survey will include details about performance and trends of various sectors in outgoing fiscal year
  • The survey will be followed by federal budget, which is expected to lay out targets for macroeconomic stability

ISLAMABAD: Pakistan will unveil its Economic Survey 2024-25 tomorrow, Monday, and detail major socio-economic achievements of the outgoing fiscal year, Pakistani state media reported.

The survey will include details about performance and economic trends of various sectors, including agriculture, industry, services, energy, information technology and telecommunications, capital markets, health, education and transport.

Annual trends of major economic indicators regarding inflation, trade and payments, public debt, population, employment, climate change, and social protection will also be part of the survey.

“Finance Minister Muhammad Aurangzeb will release the Economic Survey-2024-25 at a ceremony to be held in Islamabad,” the Radio Pakistan broadcaster reported.

The survey will be followed by the presentation of the national budget. The earlier dates for the announcement of Economic Survey 2024-25 and federal Budget 2025-26 were June 1 and June 2, respectively, but the government extended the dates to June 6 and June 7.

Pakistan is currently bolstered by a $7 billion International Monetary Fund (IMF) program and is navigating a long path to economic recovery. The country’s annual inflation rate rose to 3.5 percent in May, though its macroeconomic outlook has improved in recent months, supported by a stronger current account balance and increased remittances.

The Pakistani government says it remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens.

Earlier this month, Planning Minister Ahsan Iqbal announced the government has allocated Rs1 trillion ($3.5 billion) for development projects in the upcoming budget for fiscal year 2025-26.