PAKISTAN’S decision to seek UNESCAP’s policy advisory and technical support for developing an energy transition investment plan reflects a growing recognition that the country’s shift to renewable energy is critical for ensuring affordable power for economic progress, fiscal and external sector stability and climate resilience. A credible investment framework can help us attract foreign green investment, leverage blended finance models that combine public and philanthropic funds, and access concessional loans and guarantees to make RE projects financially viable, especially for the underserved.

Decades of dependence on imported fossil fuels is a key factor behind the repeated exposure of the economy to external shocks, balance-of-payments crises and a power sector debt burden that continues to grow. Against this backdrop, the case for transition is compelling. Pakistan is blessed with abundant solar and wind resources, and the cost of renewable generation has fallen sharply. Though the country should have already been well on its way to a cleaner and cheaper energy mix, progress has been slow due to policy inconsistencies, tariff distortions, financial constraints and the lack of capacity to tap concessional international green capital. While an effective ETIP can offer investors and development partners a comprehensive roadmap linking generation targets, grid upgrades, financing instruments and regulatory reforms, financing innovations will not mean much unless accompanied by structural domestic policy and governance reforms. Briefly, the availability of green finance alone cannot guarantee the energy transition’s success, which depends largely on how the state implements the tough power sector reforms and restores policy credibility. Energy transition is fundamental to economic resilience, climate adaptation and fiscal and external stability. UNESCAP’s involvement is welcome, but unless financing is tightly integrated with governance reform, grid investment and fiscal discipline, the promise of a cleaner, affordable energy future will remain elusive.

Published in Dawn, January 7th, 2026