ISLAMABAD: Pakistan could reduce its industrial energy expenditure by more than 36 percent and slash greenhouse gas emissions by over 50 percent by 2050 through large-scale industrial electrification, according to a new study jointly conducted by Berlin-based Agora Energiewende and Islamabad-based Policy Research Institute for Equitable Development (PRIED).
The report presents a roadmap for transitioning industries away from fossil fuels, particularly natural gas, toward electricity-powered technologies and renewable energy solutions.
According to the study, industries such as food and beverages, textiles, paper and pulp, and fertilisers offer the strongest near-term opportunities for electrification, especially for low- and medium-temperature heat processes. Researchers say replacing gas-based systems with electric alternatives, supported by solar energy, can significantly lower operating costs while reducing dependence on volatile fuel markets.
PRIED researcher Manzoor Ahmad explained that industrial electrification involves replacing fossil-fuel-based production systems with electricity-driven technologies. He noted that industries shifting to the national grid and integrating solar power could gain protection from gas shortages and rising fuel prices, particularly amid geopolitical tensions affecting global energy supply chains.
Pakistan’s industrial sector currently relies heavily on natural gas, which accounts for nearly 30 percent of the sector’s fuel mix, followed by coal and coal products at 26.7 percent and electricity at 15 percent.
The study identified the food industry as having the highest short- to medium-term electrification potential, as natural gas represents 51 percent of its total fuel consumption. It stated that electric heating combined with solar photovoltaic (PV) systems could generate up to 90 percent cost savings, with an estimated payback period of just 2.2 years.
Similarly, the textile sector was highlighted as a strong candidate for early electrification. According to the report, integrating on-site solar PV systems could help textile manufacturers save at least $100,000 annually per process compared to conventional gas-based operations.
Beyond economic benefits, the study underscored the environmental advantages of industrial electrification. Under the proposed transition pathway, Pakistan’s industrial carbon dioxide emissions could decline from approximately 76.5 million tonnes to around 36.9 million tonnes by 2050.
The study’s lead author, Naila Saleh of Agora Energiewende, said the recent tensions in the Persian Gulf and concerns over the Strait of Hormuz have reinforced the urgency of reducing industrial dependence on imported fossil fuels. However, she stressed that Pakistan’s push toward electrification had already gained momentum due to structural challenges, including declining domestic gas reserves and increasing reliance on imported LNG.
The report recommends supportive electricity tariffs, renewable energy adoption, financing incentives, and regulatory reforms to modernise Pakistan’s power infrastructure and accelerate industrial electrification.
Industrial stakeholders also called for policy support to facilitate the transition. ALM Textile Mills CEO Khawja M. Hussain said electrification could substantially reduce industrial costs but noted that high upfront investment remains a major obstacle. He urged the government to introduce low-interest financing schemes similar to previous solarisation programmes.
Officials from the Ministry of Industries and Production confirmed that a new national industrial policy aimed at modernising industries, including through electrification, is expected soon. The ministry is also reportedly working on a battery storage policy to encourage local manufacturing and support industrial-scale solar energy systems.
Experts cautioned that not all industries can immediately transition to electricity with current technologies. The study recommends a phased approach, beginning with sectors requiring low- and medium-temperature heat before expanding to more complex, high-temperature industrial applications as technologies continue to evolve.
Story by Zaki Abbas
