MPs warn against long-term energy contracts

Parliamentarians and energy experts have called on the government to avoid long-term energy contracts that could trap Pakistan in costly take-or-pay obligations and contribute to circular debt, urging instead a more flexible approach to LNG and other fuel imports as solar rapidly reshapes the country's energy landscape, a statement said on Thursday.

In just a few years, and largely without public subsidy, Pakistan has deployed an estimated 50 GW of solar capacity across utility-scale, net-metered, agricultural, off-grid and behind-the-meter systems. The capacity is estimated to generate roughly 54.75 TWh annually, equivalent on a gross energy basis to nearly 1,279 MMCFD of gas-fired generation.

The discussion took place at a dialogue titled "The Sun and the Pipeline: Energy Contracts in an Era of Solar Disruption in Pakistan," convened by the Parliamentary Forum on Energy and Economy at Serena Hotel, Islamabad.

Dr Nafisa Shah, Convener of the Parliamentary Forum and Member of the National Assembly, said Pakistan must rethink its energy mix and regulatory frameworks in light of the rapid deployment of solar energy. "Pakistan has deployed an estimated 50 GW of solar capacity across its rooftops and other segments. Our energy policies must reflect this new reality and ensure that people finally receive the affordable energy they have missed for so long," she said.

"We are not simply choosing solar over LNG. We are looking for a flexible, competitively priced energy layer that ensures security without penalising the progress Pakistan has made in distributed generation."

Barrister Danyal Chaudhry, Parliamentary Secretary for Information and Broadcasting, said the debate should move beyond viewing solar and gas as competing alternatives. "We should ask how the sun, the pipeline, the grid and emerging technologies can work together to provide Pakistan with affordable, reliable and secure energy," he said.

Muhammad Arif, former Member Gas at the Oil and Gas Regulatory Authority (Ogra), emphasised the need to integrate energy governance and monetise surplus solar generation.

Asim Riaz, Energy Advisor at the All-Pakistan Textile Mills Association, said Pakistan's LNG challenge was no longer solely about securing supply. "Pakistan's LNG challenge is about demand, flexibility, affordability and market design. The sun has not eliminated the need for LNG. It has changed when RLNG is needed, how much is needed, and what kind of LNG portfolio Pakistan can afford," he said.

Energy journalist Seb Kennedy noted that Pakistan was experiencing a consumer-led energy transition faster than the state's planning system could adapt, driven by high tariffs, unreliable supply and falling solar costs.

Syed Faizan Shah, Energy Expert and Advisor to the Power Minister, said Pakistan's priority should be building an energy system more resilient to external price shocks and more efficient across generation, transmission and distribution.

"Expanding indigenous solar generation, supported by battery energy storage and other modern technologies, can improve system flexibility and reliability, reduce losses, optimise existing infrastructure and provide consumers greater protection against international fuel price fluctuations," he said.

The dialogue was attended by parliamentarians, experts, civil society and academia.