The results of this study, which highlight the opportunities and challenges that lie ahead, are extremely important for policymakers and the industry.
Speaking at a study’s launch, participants urged international financial institutions to stop funding Pakistan’s fossil fuel projects and instead direct their resources to renewable energy initiatives there.
At the launch of the “Energy Finance Outlook – A Case of Pakistan” study on Wednesday at a nearby hotel, academics, researchers, environmentalists, and policymakers made this claim. The research was carried out by the NED University Department of Economics and Management Sciences in cooperation with Indus Consortium, a company that works on development, environmental, and humanitarian projects throughout the nation.
The call to stop fossil fuel funding stems from concerns about the environmental impact and climate change consequences associated with continued reliance on fossil fuels.
The session on “Energy Financing Trends in Pakistan” was presided over by Dr. Raza Ali Khan, chairman of EMD at NED University, while the session on “Climate Change and Environmental Sustainability” was presided over by renowned environmentalist Nasi Panhwer.
The study’s results were presented by Dr. Mirza Faizan Ahmed, a senior researcher and assistant professor at EMD. Other speakers included Yasir Darya, Director Knowledge Forum Zeenia Shaukat, Divisional Head – Policy and Transformation, Compliance Group, UBL Rashid Azeem, Hussain Jarwar, CEO Indus Consortium, CEO Indus Consortium, Ms. Fiza Qureshi, Representative of Sindh Forest Department Shehzad Sadiq, and Fisherfolk Community Leader Fatima Majeed.
This ground-breaking study sheds important light on how various energy sources will be financed from 2019 to 2022 and what that means for the nation’s future energy supply. The analysis of financial data, policy reviews, and a thorough case study of Jamshoro Power Company Ltd. are all included in the study. It highlights the necessity of a thorough and well-rounded energy policy.
The results of this study, which highlight the opportunities and challenges that lie ahead, are extremely important for policymakers and the industry.
Pakistan’s energy sector continues to heavily rely on fossil fuels, with over 85% of the country’s energy supply coming from them, despite some previous attempts to address environmental concerns. Despite the availability of cleaner alternatives like wind, solar, and hydropower, thermal sources still account for more than 60% of the electricity generated.
Major investors in Pakistan’s energy sector include China, the World Bank, the Asian Development Bank, and other national and international organisations.
Coal, nuclear, transmission, and distribution projects are funded in that order, with hydropower receiving 40% of the funding. Despite increased coal use, the study predicts a possible decline in the use of fossil fuels. Despite being a good example, Jamshoro Power Company Ltd. poses risks to the environment and human health. The study emphasises the requirement for more funding for renewable energy sources.
Several recommendations are put forth in light of the study’s findings. It is crucial to have an all-encompassing, long-term integrated energy policy that covers all energy sources and consumer sectors.
In order to lessen reliance on foreign lenders, the study recommends that indigenization, financial sustainability, and environmental responsibility be given top priority. Additionally, to promote a balanced energy mix, the optimisation framework of the Indicative Generation Capacity Expansion Plan should take into account distinct scenarios for environmental and economic costs.
Grow Green Network, consisting of 20 CSOs from Sindh and Punjab, emphasized renewable energy financing demand and opposed fossil-fuel-based energy development during the study launch.