Ayesha Saba

China's plan to unveil advancement in its energy revolution during this year’s “two sessions” offers a timely opportunity for Pakistan to reevaluate and enhance its renewable energy strategy. By aligning with China's initiatives, Pakistan can leverage technological advancements, financing mechanisms, and collaborative partnerships to accelerate its transition to a more sustainable and resilient energy future. The "two sessions" refer to the annual sessions of the National People’s Congress (NPC), China’s top legislature, and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC). The sessions gather China’s top legislators and political advisors to discuss national policies across various sectors. This year’s “two sessions” took place from March 4 to 11. Speaking to WealthPK, Dr Sajid Amin Javed, Deputy Executive Director at the Sustainable Development Policy Institute (SDPI), said, “Currently, China stands at the forefront globally as a producer and investor in green technology and finance. Its development model always emphasizes shared growth, not just for Pakistan but also for the entire South Asia.

Pakistan should make the most of the forums it participates in, and our national development planning should play a crucial role in this process.” “The ongoing collaboration between Pakistan and China holds paramount importance, serving as a cornerstone for both nations. This significance is particularly evident in initiatives like the China-Pakistan Economic Corridor (CPEC), which stands as a flagship program mutually beneficial to both the countries. In phase 2 of CPEC, it is essential to examine Pakistan's energy policy, which I believe is crucial,” he opined. “Owing to Pakistan's significant import bill predominantly associated with oil and related products, it becomes imperative for us to seize opportunities in low-cost energy production, green energy initiatives, and climate finance. Pakistan needs to leverage these forums to maximize the benefits in addressing these challenges efficiently,” Sajid added. “The Chinese embassy and Pakistan-China centres are already actively engaged in various collaborations.

Pakistan can focus on areas such as climate finance, particularly on capacity development initiatives aimed at generating climate finance, including the issuance of green bonds and social bonds.” Pakistan and China have established substantial presence in the external debt agreements. When the two countries negotiate debt swap agreements, it yields favourable outcomes for Pakistan. These agreements typically involve the restructuring or conversion of debt obligations, resulting in more favorable terms for Pakistan, such as lower interest rates or extended repayment periods. Such arrangements can alleviate Pakistan's debt burden and contribute to its economic stability and development,” Sajid Amin observed. Senior Research Economist and former executive director of CPEC Centre of Excellence at the PIDE, Mehmood Khalid said, “In Pakistan, numerous hydroelectric projects have been undertaken as integral components of the nation's green energy endeavours.

Therefore, it is high time for the government to prioritize the development of all future energy projects based on principles that ensure both energy production efficiency and environmental safety. Only then can we truly benefit from these endeavours.” “At present, there seems to be a lack of comprehensive planning and coordination in ensuring that the energy projects are in harmony with the environmental conservation efforts. The government needs to undertake a thorough review of its future procurements and projects in the pipeline.” “By incorporating advanced technologies and best practices that prioritize sustainability and environmental protection, Pakistan can effectively mitigate the adverse effects of energy production on its environment. “Moreover, the government should explore opportunities to enhance collaboration with international partners, including China, to access cutting-edge technologies and expertise in green energy development. This approach would not only enable Pakistan to meet its energy requirements more sustainably but also position the country as a leader in environmentally responsible energy production on the global stage,” he added.

According to the data shared by the CPEC ministry, Karot Hydropower Project – a rockfill gravity dam with an installed capacity of 720MW – holds key importance in providing clean and affordable energy. The project is sponsored by China's 'Three Gorges Corporation’ (CTG). Gwadar has recently installed 7,000 solar panels, offering crucial relief for the local community to endure a prolonged energy crisis. Additionally, the 100MW Jhampir wind energy project in Sindh, the upcoming 1,124MW Kohala hydropower project in Azad Kashmir and Cacho wind power project in Sindh are poised to reduce Pakistan’s reliance on non-renewable energy sources, further diversifying its energy mix. China has maintained its position as the world's largest and fastest-growing producer of renewable power for over a decade. In recent years, its lead has further expanded due to a significant increase in solar and wind power capacity.

INP: Credit: INP-WealthPk