INP-WealthPk

Energy reforms vital for Pakistan to achieve climate action goals

March 13, 2025

Amir Saeed

Pakistan needs energy governance reforms to meet its Nationally Determined Contributions (NDCs) targets through stronger institutions, community engagement, and equitable climate policies.

Talking to WealthPK, Afia Malik, an energy expert at Pakistan Institute of Development Economics, said: “To achieve NDC targets, it is crucial to strengthen the institutional framework by aligning these targets with relevant policies and actions. Engaging local communities in planning and implementation is vital, as they are most vulnerable to climate change.”

Additionally, she emphasised that enhancing the capacity of agencies like the National Energy Efficiency and Conservation Authority (NEECA) is important. “Regular monitoring and independent evaluations are necessary to stay on track with climate goals.” Afia added that collaboration among stakeholders —ministries, civil society, local communities, businesses, and financial institutions — is essential.

“Building expertise across these groups and fostering international cooperation will help advance green and clean technologies.” “Pakistan has made progress in establishing climate and green financing guidelines/policies to support sustainable development. While these policies demonstrate a commitment to addressing climate change, there is significant room for improvement in their implementation and enforcement,” she noted.

Meanwhile, talking to WealthPK, Dr Khalid Walid, a research fellow at Sustainable Development Policy Institute, highlighted the growing disparity between the Global North and South in implementing NDCs, and called for urgent action to ensure global justice and inclusive development. He stressed the need for clear pathways, quantitative targets, and greater transparency, suggesting that economic growth must align with environmental sustainability through integrated policies across finance, commerce and local governance.

Advocating for a People-Public-Private Partnership (PPPP) model, he emphasised mobilising both domestic and international funding to ensure community-centered NDCs that prioritise vulnerable populations, youth, and marginalised groups. He also emphasised stronger multi-level coordination to bridge the North-South gap, making climate policies more equitable, sustainable, and inclusive.

Pakistan intends to set a cumulative ambitious conditional target of an overall 50% reduction in its projected emissions by 2030, with 15% financed through domestic resources and 35% dependent on international support. The country’s primary energy supply comes from oil and natural gas, wind, and hydropower. Policy reforms ensuring fair market conditions, transparent pricing mechanisms, and effective tariff structures will attract investments and foster a competitive energy market.

Credit: INP-WealthPk