2025-07-08
Al-Attiyah Foundation Highlights Pakistan’s ‘Untapped Potential’ To Emerge As Critical Energy Transit State
Pakistan’s untapped potential to emerge as a critical energy transit state—linking the hydrocarbon-rich Gulf and Central Asian states with the energy-hungry economies of South and East Asia has been highlighted by the Al-Attiyah Foundation.
In its latest energy research paper, Al-Attiyah Foundation delves into Pakistan’s efforts to harness its geographical advantage, analysing over $35bn in energy investments from China, Saudi Arabia, the UAE, and Qatar, as well as major transnational projects like the Turkmenistan–Afghanistan–Pakistan–India Pipeline (TAPI), Central Asia–South Asia Electricity Transmission and Trade Project (CASA-1000) and the China-Pakistan Economic Corridor (CPEC).
The analysis reveals a complex web of opportunity and vulnerability. CPEC, a project that involves upgrading roads, railways, and energy infrastructure to facilitate trade and transportation between the Pakistan and China, has delivered over 13GW of power capacity through coal, hydro, solar, and wind projects.
However, it has also contributed to Pakistan’s $1.4bn in unpaid energy debts and drawn security risks—including militant attacks on Chinese workers between 2021 and 2024.
Qatar’s $15bn LNG agreement addressed Pakistan’s gas deficit but has become a financial strain amid declining domestic energy demand and currency depreciation.
Meanwhile, instability in Afghanistan threatens to derail the $7.7bn TAPI pipeline and the $1.16bn CASA-1000 transmission line, both of which are critical to Pakistan’s regional integration and energy diversification.
Despite these challenges, serious momentum is building. Pakistan’s domestic energy system remains under strain, with over 60% of demand met by imported fossil fuels and widespread transmission losses weakening grid reliability.
“Yet a shift is underway. Solar and wind energy now account for 10% of installed capacity, and the government has pledged to reach 60% clean energy by 2030, including targets to electrify 30% of road transport.
“Meeting this goal will require 22 GW of new renewable capacity, competitive procurement, and grid modernisation. However, persistent fiscal stress, climate vulnerability, and geopolitical friction continue to test Pakistan’s credibility as a stable energy partner in the region,” Al-Attiyah Foundation said.
Qatar’s $15bn LNG agreement addressed Pakistan’s gas deficit but has become a financial strain amid declining domestic energy demand and currency depreciation.
Meanwhile, instability in Afghanistan threatens to derail the $7.7bn TAPI pipeline and the $1.16bn CASA-1000 transmission line, both of which are critical to Pakistan’s regional integration and energy diversification.
Despite these challenges, serious momentum is building. Pakistan’s domestic energy system remains under strain, with over 60% of demand met by imported fossil fuels and widespread transmission losses weakening grid reliability.
“Yet a shift is underway. Solar and wind energy now account for 10% of installed capacity, and the government has pledged to reach 60% clean energy by 2030, including targets to electrify 30% of road transport.
“Meeting this goal will require 22 GW of new renewable capacity, competitive procurement, and grid modernisation. However, persistent fiscal stress, climate vulnerability, and geopolitical friction continue to test Pakistan’s credibility as a stable energy partner in the region,” Al-Attiyah Foundation said.
Source: GULF TIMES