ISLAMABAD: Federal Minister of Energy Awais Ahmed Leghari said that in Pakistan 30 million motorcycles consume $6 billion worth of imported petrol annually, with motorcycles and rickshaws accounting for 40% of the country’s total petrol consumption.
While briefing the Senate Standing Committee on Climate Change, Leghari said that heavy reliance on fossil fuels significantly contributes to carbon emissions, with motorcycles emitting 110 kt, rickshaws 40 kt, small cars 10 kt, buses 22 kt, and trucks 24 kt of carbon annually. And, to address these environmental and economic challenges, the government is introducing an Energy Transition Plan, aiming to shift towards cleaner and more sustainable energy solutions.
Minister Leghari also said that the current government was promoting environment-friendly electricity generation from alternative sources instead of expensive imported oil. He said that before today, power generation plants were being set up under different policies, but now we have introduced a new system in which power plants will be set up through a competitive process.
He said that the Ministry of Energy has closed five factories that run on expensive imported furnace oil. These factories used to generate 2,500 megawatts of electricity, he said, adding that these factories were not only polluting the environment but were also putting a heavy burden on the national exchequer.
Awais Leghari said that the closing of these factories saved billions of rupees for the national treasury. He said that converting electric tube wells to solar energy in Balochistan can save 80 to 100 billion rupees annually. He said that our farmers should water their crops through drip irrigation, which can save more than 80 percent of water.
The minister apprised that he water his lands through drip irrigation and saving 82.2% of the water. “We will have to save groundwater, otherwise it will go down very low after some time.”
The federal minister said that to promote electric vehicles and motorcycles in the country, the price of electricity at charging stations has been reduced from Rs. 71 per unit to Rs. 39.70. He said that if banks and international institutions are ready to provide loans, it will yield positive results.
Revealing a series of reforms aimed at promoting sustainable energy solutions and enhancing efficiency in Pakistan’s power sector, Awais Leghari stated that in the past, power plants were installed under various policies, but now a competitive system has been introduced, ensuring that all future power projects undergo a transparent bidding process.
He highlighted that the Ministry of Energy has already decommissioned five furnace oil-based power plants, which collectively generated 2,500 MW of electricity. These plants not only contributed to environmental pollution but also placed a heavy financial burden on the national treasury. Their closure has resulted in substantial savings of billions of rupees.
The minister emphasized the importance of solar energy, particularly in Balochistan, where agricultural tube wells are being transitioned to solar power. This initiative is expected to save between PKR 80 to 100 billion annually. He also advocated for farmers to adopt drip irrigation techniques, which could save over 80% of water consumption. “I use drip irrigation on my lands and have achieved an 82% water conservation rate. If we do not preserve underground freshwater, it will become increasingly scarce in the coming years,” Leghari warned.
In a major step towards promoting electric mobility, the government has slashed electricity tariffs for EV charging stations from PKR 71 per unit to PKR 39.70 per unit. “The first-ever electric vehicle policy in Pakistan is a revolutionary step toward environmental sustainability,” said Leghari. He added that if banks and international institutions are willing to finance EV projects, it would yield significant results.
Pakistan has already embraced a solar revolution, with significant off-grid solar capacity being deployed. Leghari noted that he introduced net metering in 2017-18, and while solar energy is not being discouraged, its integration into the grid needs careful management. Currently, net metering accounts for a Rs103 billion burden on other consumers.
Looking ahead, the government has set ambitious renewable energy targets: 55% of Pakistan’s electricity already comes from eco-friendly sources. By 2030, 60% of the country’s electricity generation will be from renewable and environmentally friendly sources. The long-term goal is to have 88% of Pakistan’s power generation from clean energy sources.
To achieve these goals, the government is introducing a “Wheeling Policy,” which will facilitate the production and sale of green energy. Additionally, Pakistan needs a $100 billion investment for sustainable energy projects, with $50 billion required to reach 60% renewable energy by 2030 and $18 billion for the National Electric Vehicles (NEV) plan.
Leghari reiterated that industries and economic zones will have complete autonomy in managing their power needs. He assured that electricity provision under competitive market conditions is being implemented, ensuring fair tariffs across different regions.
The minister confirmed that inefficient power plants running on furnace oil are being retired early. Furthermore, the transition of coal-fired plants to locally mined Thar coal will reduce import costs and enhance energy self-sufficiency.
The government is also introducing new building codes to prevent energy wastage and launching a program to replace inefficient ceiling fans. “Privatization, open market competition, and competitive electricity pricing—everything is in motion,” Leghari said.
The federal minister reaffirmed the government’s commitment to ensuring that Pakistan’s power sector becomes more sustainable, cost-effective, and environmentally friendly. “We are working on a long-term affordable electricity package so that industries can plan accordingly and benefit in the long run,” he stated.
