PAKISTAN’S textile sector, the backbone of the national export economy, is facing a defining moment. The challenge today is no longer limited to market access or global competition; it is increasingly about energy, its cost, reliability and sustain-ability. Without addressing this funda-mental issue, the country risks under-mining one of its most vital economic pillars.

Rising global fuel prices, driven by ongoing geopolitical tensions and dis-ruptions in oil supply chains, have exposed the vulnerabilities of Pakistan’s heavy reliance on imported fossil fuels. These pressures are already contributing to inflation, slowing economic growth, and threatening export earnings. For an energy-intensive sector like textiles, the consequences are particularly severe.

In this context, renewable energy, especially solar, has emerged as a practical and necessary alternative. Over the last few years, many industrial units have turned to solar power to reduce costs and ensure uninterrupted energy supply. However, recent policy shifts, particularly the transition from net metering to net billing, have introduced uncertainty and reduced financial incentives for further investment. Instead of encouraging clean energy adoption, such measures risk pushing industries towards expensive alternatives, like battery storage systems, increasing operational costs.

A deeper concern is the inconsistency in policy-making. Frequent regulatory changes and lack of long-term clarity have created a trust deficit between industry and the government, making strategic planning increasingly difficult. Industries are gradually moving towards energy self-reliance, not by choice but out of necessity. Yet, scaling this transition requires coherent policies, stable regu- lations and technological support.

The global market is also evolving rapidly. Environmental compliance, carbon footprint transparency, and sustainable production practices are no longer optional; they are essential for accessing inter-

national markets. Without adapting to these requirements, Pakistani exporters risk losing competitiveness to regional players like India, Bangladesh and Vietnam, where energy costs are lower and policy frameworks are more supportive.

To address these challenges, Pakistan must adopt a comprehensive approach. This includes developing a national carbon accounting system, strengthening industry-academia collaboration, investing in research and development (R&D), and integrating industrial zones with renewable energy solutions.

Equally important is engaging inter-national partners to support technology upgrades and sustainable supply chain practices.

Energy transition is no longer a distant goal; it is an immediate necessity. By prioritising renewable energy and ensuring policy consistency, Pakistan can reduce dependence on volatile global fuel markets, and enhance its export competitiveness.

If managed effectively, this shift may transform the textile sector into a more resilient and sustainable driver of economic growth. Failure to act, however, risks leaving the country further behind in an increasingly competitive global landscape.

Naeem Ahmad
Faisalabad

Published in Dawn, June 14th, 2026