By Qudsia Bano

China’s rapid advancement in green technologies, including solar power, electric vehicles (EVs), battery storage and clean manufacturing, is creating new industrial and investment opportunities for Pakistan as Islamabad pursues energy transition, lower import costs and export-oriented industrialisation.

According to the International Energy Agency (IEA), China’s clean-energy investment exceeded $625 billion in 2024, nearly doubling from 2015 levels, while the country achieved its 2030 wind and solar capacity target six years ahead of schedule.

The IEA further reported that China continues to dominate global renewable-energy expansion, with Chinese renewable capacity additions expected to account for nearly 60% of worldwide growth in 2025.

China’s leadership in solar panels, lithium batteries and electric vehicles is reshaping supply chains across emerging markets, including Pakistan, where affordable Chinese green technologies have accelerated solar adoption and opened new avenues for industrial cooperation and local manufacturing.

Pakistan has already emerged as one of the largest importers of Chinese solar equipment. A recent study by Pakistan’s Competition Commission stated that the country imported around 17 gigawatts of solar panels from China during 2024, making Pakistan the world’s third-largest importer of Chinese solar modules. The report noted that the imported capacity represented nearly 30% of Pakistan’s total installed electricity generation capacity.

The report further highlighted that declining Chinese solar prices significantly boosted adoption among Pakistani households and businesses, enabling consumers to gradually reduce dependence on costly grid electricity.

Pakistan’s energy transition has also been supported by policy initiatives aimed at increasing renewable-energy integration into the national grid. State Bank of Pakistan data, based on NEPRA statistics, indicates a growing share of renewable energy in the country’s power mix as solar installations continue to expand.

Industry observers believe China’s green-tech expansion could help Pakistan reduce its energy import bill while creating opportunities in local manufacturing, battery assembly, electric mobility and renewable-energy services.

Waqar Ahmed, Manager Business Development at SkyElectric, said Pakistan was entering a new phase where solar energy alone would no longer be sufficient without complementary technologies such as battery storage and smart-grid infrastructure.

He said China’s strength in battery technology and energy-storage systems offered Pakistan an opportunity to build domestic capabilities in areas that had previously remained limited or costly. According to him, declining battery prices globally could make solar-plus-storage systems commercially viable for industrial and residential users in Pakistan over the next few years.

Ahmed said Pakistan’s industrial sector was increasingly exploring renewable-energy solutions as rising electricity tariffs continued to affect competitiveness. He noted that Chinese firms were becoming more willing to move beyond exports and explore joint ventures, technology transfer and regional partnerships.

He added that Pakistan could particularly benefit from developing local assembly plants for batteries, inverters and EV components, helping create skilled employment opportunities while reducing reliance on imported fossil fuels.

Tufail Ahmed, Operations Manager at Lean Automation Pvt Ltd Pakistan, said China’s scale in clean manufacturing had fundamentally transformed the economics of renewable energy, making advanced technologies more accessible to developing countries such as Pakistan.

He explained that the significant decline in solar-panel prices in recent years had largely been driven by Chinese manufacturing efficiency and large-scale production capacity. He said Pakistan’s agriculture, textile and SME sectors had emerged among the biggest beneficiaries, as they increasingly adopted distributed solar systems to lower operational costs.

Ahmed said the next major opportunity for Pakistan could emerge in electric mobility and battery storage, particularly as Chinese EV exports continue to expand globally.

He said Pakistan could position itself as a regional assembly and distribution hub for affordable electric two-wheelers, small commercial EVs and battery solutions if the government introduced consistent industrial policies and strengthened support for charging infrastructure.

Globally, China’s clean-tech exports continue to expand despite slower economic growth in several regions.

Recent international energy assessments indicate that Chinese exports of solar products, EVs and batteries continued growing during 2025 and 2026 as countries increasingly sought cost-effective alternatives to fossil-fuel-based energy systems.

Experts believe Pakistan’s long-term gains from China’s green-tech leadership will depend on its ability to move beyond imports and build a domestic industrial ecosystem around renewable energy, battery storage, electric mobility and energy-efficient manufacturing.

Credit: INP-WealthPk