The Levelised Cost of Electricity (LCOE) for solar and wind in Pakistan is now significantly lower than coal, the UN Economic and Social Commission for Asia and the Pacific (UN-ESCAP) says in its 2025 Review of Climate Ambition in Asia and the Pacific presenting a clear economic case to accelerate renewables.
The report places this opportunity in a wider regional picture: the Asia-Pacific accounted for 70 percent of new global renewable capacity additions in 2024, and regional economic activity grew 4.6 percent in 2024, contributing 60 percent of global GDP growth over the past decade.
Despite the economic logic and regional momentum, UN-ESCAP warns Pakistan’s weak, ageing grid infrastructure is the chief obstacle to integrating large-scale solar and wind while maintaining system stability. The country lacks the grid capacity, coordination and investment needed to absorb variable renewable generation.
The report says a successful phase-down of coal in Pakistan requires a comprehensive energy transition plan with clear targets, strong policies and broad stakeholder engagement, and that the process must be “just” to avoid disproportionate impacts on workers, businesses and households. Long-term policy stability, financial support and institutional reforms are needed to attract private investment in renewables.
UN-ESCAP also highlights the region’s continued dependence on coal producing 84 percent of the world’s coal-fired power in 2024 and consuming 81.7 percent of global coal output in 2023 and stresses that phasing down coal will require political commitment, the removal of fossil-fuel subsidies, and coordinated policy frameworks to support renewable growth and energy efficiency.
Finally, the report urges governments and the private sector to strengthen legal and regulatory frameworks and for companies to adopt deep decarbonisation strategies across operations and supply chains to turn targets into tangible emissions reductions.
