Fozia Azam

As the world continues its shift towards sustainable energy sources, there is an urgent need to stimulate foreign investment in the solar energy industry, says a renowned expert. "To effectively develop the solar energy sector, Pakistan must aim to forge technology tie-ups and establish joint ventures (JVs) with countries that possess a strong technological foundation," said Mustafa Abdullah, a senior solar and wind energy developer and Chief Executive Officer (CEO) of Moro Company Limited, while talking to WealthPK. He said that Pakistan, blessed with abundant sunlight, has the potential to harness solar energy on a large scale. However, he said, the solar industry is still in its emerging stage, requiring innovation, expertise, and technology transfer to accelerate its growth and maximise its potential.

"To achieve this, Pakistan needs seeking partnerships with countries that have a well-established solar technology base," he added. Abdullah was of the view that technology tie-ups and JVs with foreign countries can provide a win-win situation as Pakistan can benefit from the knowledge and advanced technologies while the partner countries can gain access to a growing market and prospects for collaboration. "These ventures can range from strategic alliances, research partnerships, and technology transfer agreements to establish the groundwork for sustainable solar energy development," he added. The focus of these technology tie-ups and JVs will be to enhance Pakistan's renewable energy capacity, particularly in the solar sector.

By leveraging the technology and experience of partner countries, Pakistan can improve its solar infrastructure, increase energy generation, and reduce dependence on traditional fossil fuel sources. Ultimately, this will contribute to achieving the country's clean energy goals while reducing carbon emissions and combating climate change. "The development of solar industry through foreign investment holds the potential to create jobs and promote economic growth," he said. Abdullah said the establishment of JVs can foster knowledge transfer, skills development, and the creation of employment opportunities in the local solar industry. He said increased solar energy deployment will lead to a more reliable and affordable power supply, attracting further investment and industrial growth in related sectors.

By stimulating foreign investment, particularly in solar technologies, Pakistan can address challenges in the energy sector effectively. Experts believe that to attract foreign investment for solar industry development, the Pakistani government needs to undertake several initiatives, including the formulation of favourable policies, offering incentives, and creating a supportive business environment for investors. Special economic zones dedicated to renewable energy have also been established to encourage foreign participation and provide necessary infrastructure.

Credit: INP-WealthPk