Solar progress undone

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In a country plagued by energy insecurity and spiralling power costs, Pakistan's foray into solar energy once offered a rare glimmer of hope. But in a troubling turn of events, that hope is now dimming. By slashing the net metering buyback rate from Rs27 to a meagre Rs10 per unit, the government has not only jolted hundreds of thousands of rooftop solar users but also undermined its own clean energy ambitions. It is, in every sense, a case of taking one step forward and two steps back.

Pakistan's installed generation capacity may have crossed 46,000 MW, but the power sector remains inefficient and riddled with structural flaws. The over-reliance on imported fuels, outdated grid infrastructure and circular debt have left the country paying exorbitantly for electricity it can barely transmit or afford. Amid this dysfunction, the rapid uptake of rooftop solar systems by households and businesses from 2022 to 2024 offered a decentralised, clean and increasingly affordable alternative. It was also a rare instance where citizens took ownership of their energy future — not through subsidy, but through self-investment.

Now, however, the state appears more interested in using electricity as a revenue-generating tool than as a public utility. Faced with mounting internal fiscal constraints and crushing external debt repayments, the government is seeking to enhance existing streams of income — and the power sector has become a prime target. This regressive approach may yield short-term financial relief, but it threatens long-term energy security. Worse still, it sends a chilling signal that policy stability in Pakistan is only as reliable as the next fiscal emergency.

This is a delicate balancing act between fiscal responsibility and environmental sustainability, between immediate revenue needs and long-term energy security. But the answer cannot be to stifle citizen-led progress in favour of short-term gains.