ISLAMABAD, August 27, 2026: Parliamentarians and energy experts have urged the government to avoid long-term energy contracts that could expose Pakistan to costly take-or-pay obligations and further aggravate circular debt, calling instead for a more flexible approach to LNG and other fuel imports as solar power rapidly transforms the country’s energy landscape.
Pakistan has deployed an estimated 50 GW of solar capacity across utility-scale, net-metered, agricultural, off-grid and behind-the-meter systems in recent years, largely without public subsidies. The installed capacity is estimated to generate around 54.75 TWh annually, equivalent on a gross energy basis to nearly 1,279 MMCFD of gas-fired generation.
The rapid expansion of solar has significantly altered Pakistan’s energy outlook and challenged assumptions underpinning long-term gas and LNG commitments.
The views were expressed at a dialogue titled “The Sun and the Pipeline: Energy Contracts in an Era of Solar Disruption in Pakistan,” organised by the Parliamentary Forum on Energy and Economy at Serena Hotel, Islamabad. The discussion focused on Pakistan’s changing RLNG requirements, geopolitical risks, global market volatility and policy options to protect consumers while maintaining energy security.
Dr. Nafisa Shah, Convener of the Parliamentary Forum on Energy and Economy and Member of the National Assembly, said Pakistan needed to reassess its energy mix and regulatory framework in response to the rapid growth of solar power.
She said the country’s energy policies must recognise the new reality created by distributed solar generation and ensure access to affordable electricity. She noted that long-term take-or-pay arrangements had contributed to expensive electricity and financial pressures on the energy sector.
“We are not simply choosing solar over LNG. We are looking for a flexible, competitively priced energy layer that ensures security without penalizing the progress Pakistan has made in distributed generation,” she said.
Barrister Danyal Chaudhry, Parliamentary Secretary for Information and Broadcasting and Secretary of the Parliamentary Forum on Energy and Economy, said the debate should not be framed as a choice between solar and gas.
“We should not ask whether Pakistan chooses the sun or the pipeline. We should ask how the sun, the pipeline, the grid and emerging technologies can work together to provide Pakistan with affordable, reliable and secure energy,” he said.
Muhammad Arif, former Member Gas at OGRA and petroleum law, policy and regulatory advisor, stressed the need for integrated energy governance and mechanisms to monetise surplus solar generation, particularly during periods of high solar output.
Asim Riaz, Energy Advisor at the All-Pakistan Textile Mills Association, said Pakistan’s LNG challenge had evolved beyond simply securing adequate supplies.
“Pakistan’s LNG challenge is about demand, flexibility, affordability and market design. The sun has not eliminated the need for LNG. It has changed when RLNG is needed, how much is needed, and what kind of LNG portfolio Pakistan can afford,” he said.
Energy journalist and Energy Flux founder Seb Kennedy said Pakistan was experiencing a consumer-led energy transition faster than the state’s planning system could adapt. He attributed the shift largely to high electricity tariffs, unreliable power supply and declining solar costs rather than centralised government planning.
He called for a shift away from rigid volume commitments towards greater flexibility, optionality and market access, while ensuring that the financial burden of the energy transition does not fall disproportionately on vulnerable consumers.
Huma Chughtai called for greater consistency and clarity in policymaking, particularly in assessing energy supply, demand and broader economic challenges. She also stressed the importance of stronger representation from the Planning Division in energy policy discussions.
Mobeen Arif Jutt highlighted the impact of high electricity tariffs on ordinary consumers and called for meaningful structural reforms in the power sector, with particular attention to low-income and vulnerable communities.
Syed Faizan Shah, Energy Expert and Advisor to the Power Minister, said Pakistan’s priority should not simply be to add more generation capacity but to build a more resilient and efficient energy system.
“Our focus is on building an energy system that is more resilient to external price shocks and more efficient across generation, transmission and distribution,” he said.
He added that expanding indigenous solar generation, supported by battery energy storage systems and other modern technologies, could improve system flexibility and reliability, reduce losses, optimise existing infrastructure and protect consumers from fluctuations in international fuel prices.
The dialogue was attended by parliamentarians, energy experts, civil society representatives and members of academia, who discussed the need for a more flexible and consumer-focused energy policy as Pakistan’s power sector undergoes a rapid transition driven by solarisation and emerging technologies.
