Pakistan’s solar expansion helps ease pressure from Gulf energy crisis

Updated 08 Apr, 2026 02:44pm 3 min read

A surge in solar power adoption across Pakistan is helping shield parts of the country from the worst effects of a global energy shock triggered by the US-Israel war on Iran.

Pakistan is increasingly relying on domestic energy sources, including solar power, to reduce exposure to fuel supply disruptions and price volatility linked to the Middle East conflict.

The country has seen a rapid rise in solar installations in recent years, with households and businesses turning to rooftop systems and battery storage to offset high electricity costs and unreliable grid supply.

This shift has helped ease pressure on imported fuels such as liquefied natural gas (LNG), according to government officials, who say greater use of local and renewable energy sources is improving resilience to external shocks.

The ongoing regional conflict has driven up global oil and gas prices, prompting Pakistan to raise domestic fuel prices and adopt measures to manage demand.

However, the expansion of solar power has softened the impact for some consumers by reducing dependence on the national grid and conventional fuels.

Rising fuel costs and concerns about shortages have also accelerated interest in alternatives such as electric vehicles, with solar power enabling lower-cost charging options.

In the remote Balochistan village of Dasht, farmer Karim Baksh has swapped a diesel-powered water pump for solar panels, insulating his crops from volatile fuel prices.

“It became impossible for me to run the pump on diesel daily,” Baksh told Al Jazeera, recalling how high fuel costs after Russia’s 2022 invasion of Ukraine forced him to scale back farming.

After borrowing Rs300,000 in 2023 to install solar panels, he now irrigates his land uninterrupted — even as oil prices rise amid disruptions around the Strait of Hormuz, a key route for global energy supplies.

“As long as there is sun, I can grow my watermelons,” he said.

Pakistan remains heavily dependent on imported fuel, with most oil shipments passing through the Strait of Hormuz. Prolonged disruption could trigger power shortages, industrial shutdowns and economic strain.

However, a rapid expansion in rooftop solar is providing a partial buffer.

Citing a study by Renewables First and the Centre for Research on Energy and Clean Air, Al Jazeera reported that solar adoption has saved Pakistan more than $12 billion in fuel imports since 2018.

Solar’s share of the energy mix has risen sharply in recent years, driven by high electricity costs, outages and falling equipment prices.

By 2025, about a quarter of households were using solar power in some form, up from 15% in 2023, according to government data.

The shift has been fueled largely by cheap imports from China, which dominates global solar manufacturing, pushing panel prices down significantly over the past decade.

Still, the transition is uneven. High upfront costs limit access for poorer households, while net-metering policies risk shifting financial burdens onto non-solar users.

For farmers like Baksh, however, the benefits are immediate.

“The water keeps flowing no matter what,” he told Al Jazeera.

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