By Muhammad Luqman

The disruption of LNG supplies due to the closure of the Strait of Hormuz has seriously impacted economies across Asia, particularly their power sector. However, due to the increasing share of non-fossil fuel resources in electricity generation, Pakistan is expected to face minimal impact, according to energy experts.

“As far as electricity is concerned, our dependence on imported fuels has decreased significantly. Therefore, Pakistan is not a hostage to the current situation,” said Irfan Ali, former federal secretary for energy, while talking to Wealth Pakistan.

According to data from the Power Division, Pakistan is rapidly increasing its share of clean energy, aiming for over 90% by 2035. As of late 2025, renewables accounted for approximately 46%–52% of electricity generation. This transition is being driven by a massive, consumer-led solar boom, with 48 gigawatts of solar panels imported in 2025, along with large-scale hydropower, wind, and nuclear projects.

Irfan Ali said power demand naturally rises during the summer months; however, hydropower generation also increases due to higher river flows, helping to meet the demand.

He noted that imported LNG and coal have historically posed both availability and cost challenges. He expressed hope that the power sector would remain stable through a mix of Thar coal, nuclear energy, hydropower, and renewable sources, particularly the rapidly expanding solar energy base.

At this juncture, he added, the growing use of solar energy by private individuals will serve as a redeeming factor. He emphasized that the people-led solar boom will ultimately ease the impact of the Middle East crisis on Pakistan. “Instead of taking cosmetic measures, we must use this time to shift our focus further towards solar energy and renegotiate with IPPs to reduce their capacity costs,” the former federal secretary for energy suggested.

Some energy experts believe that the suspension of LNG imports from Qatar presents a rare opportunity for Pakistan to reduce its reliance on expensive imported fuels for power generation. “At most, we may lose 4,000 to 5,000 megawatts of electricity currently produced by imported LNG. However, this is not a significant share of Pakistan’s total installed capacity of 46,000 megawatts,” said Arshad H. Abbasi, an Islamabad-based energy expert.

Speaking to Wealth Pakistan, he noted that Pakistan’s demand from the national grid — currently not exceeding 22,000 megawatts after the solar expansion — can be met through sources other than LNG. He stressed the need to fully utilize the existing capacity of power plants instead of paying hefty capacity charges to independent power producers (IPPs).

“These IPPs benefit from loopholes in laws and contracts, allowing them to receive payments for electricity they have neither generated nor supplied,” Arshad H. Abbasi said. He also claimed that LNG has contributed significantly to the circular debt. “The circular debt in the power sector alone stands at Rs3,500 billion, largely due to the imported gas and coal,” he added.

He further emphasized the need to improve the functioning of all three pillars of the power sector — generation, transmission, and distribution — to make Pakistan’s energy system more efficient and reliable.

Credit: INP-WealthPk