Pakistan’s renewable energy sector is in a phase of rapid expansion and plays a critical role in addressing power shortages and optimizing the national energy mix. Solar and wind power projects account for an increasing share of new installed capacity, with major wind corridors located in Sindh and Balochistan provinces, while distributed solar PV systems are being deployed nationwide. Chinese companies are actively involved in equipment supply, EPC contracting, and project investment, making China a key partner in the sector’s development.

Includes solar photovoltaic (PV) systems, wind turbines, hydropower equipment, energy storage systems, and biomass power generation systems. Among these, solar and wind power represent the fastest-growing segments in both investment and installed capacity, while distributed solar applications are also expanding rapidly.

The Government of Pakistan has designated renewable energy as a strategic priority in its national energy policy and is actively promoting energy transition. Key policies include priority grid integration for renewable energy, incentive-based tariff mechanisms (such as net metering), open investment policies for foreign investors, and priority development of wind and solar projects under the CPEC framework. In addition, certain tax incentives and import duty exemptions are provided for related equipment to reduce project costs and accelerate deployment.