Pakistan's ongoing energy transformation has propelled the country into a crucial market for Chinese photovoltaic (PV) companies, with inverter exports reaching RMB 326 million in August 2024, marking a 429.04% year-on-year increase. According to the China Photovoltaic Industry Association (CPIA), Pakistan became the second-largest module export market for China after Europe in the first half of the year.
This rapid growth stems from Pakistan's chronic power shortages and the impact of severe floods over the past two years, which have damaged the country's energy infrastructure. Abbas, a Pakistani trader, noted at the Investment and Trade Forum in China, “Power shortages have long plagued Pakistan. We've also faced severe damage to our power system due to frequent floods, making the demand for large-scale solar photovoltaics increasingly urgent.”
Pakistan's solar energy adoption is accelerating as its reliance on coal imports and issues like circular debt, slow transmission network development, and frequent transmission line damage hinder the traditional power sector. In response, businesses and households are increasingly turning to solar power to reduce their dependence on rising electricity prices. As of June 2023, Pakistan's installed solar capacity was 630 MW, just 1.4% of its total power capacity, highlighting the room for growth.
The country's natural conditions are highly favorable for solar energy, especially in Balochistan, which has significantly higher photovoltaic potential compared to New Delhi and Shandong Province, China. The government has set ambitious targets, aiming to increase the share of renewable energy to 20% by 2025 and 30% by 2030.
“Every bit of space I have, even if it's just a few feet, I want covered in solar panels,” said Khawaja Masood Akhtar, CEO of Forward Sports, reflecting the growing corporate investment in solar energy. His company plans to cover 80% of its energy needs with solar power by April next year.
With strong policy backing and abundant solar resources, Pakistan's installed solar capacity is projected to reach 12.8 GW by 2030 and 26.9 GW by 2047, further driving demand for Chinese PV products.
