China powers Pakistan's green energy ambitions amid IMF's loan conditions

Bootstrapped Pakistan has been slapped with 11 new conditions by the International Monetary Fund (IMF) for the release of its next tranche of bailout programme. One of the conditions ties Pakistan's access to the Resilience and Sustainability Facility (RSF) to its efforts to tackle climate change and promote clean energy for long-term economic stability. And Pakistan looks no further than its 'iron brother' China to meet this need.
Lucky Cement, one of Pakistan's largest cement manufacturers, now has Chinese wind turbines and solar panels supplying over half of its energy needs at its Karachi plant. This shift has significantly reduced the company's carbon footprint, cutting carbon dioxide emissions by 60,000 tonnes annually, the Financial Times reported on Monday.
Chinese solar panel prices have dropped sharply in recent years, while electricity costs from Pakistan's grid have risen. In response, Islamabad imported solar panels with a total capacity of around 19GW last year, the Financial Times quoted Jenny Chase, lead solar analyst at BloombergNEF, as saying. She estimates Pakistan is still importing panels capable of generating 1GW to 3GW each month this year—enough to power a city of millions.
China's role in Pakistan's energy transition
At the heart of this renewable energy transition is China, which has been Pakistan's largest investor in the energy sector. Since 2005, China has invested over $68 billion in Pakistan, with energy projects accounting for 74 per cent of that total.
The China-Pakistan Economic Corridor (CPEC), launched in 2015 as part of Beijing's Belt and Road Initiative, has been the driving force behind this investment, particularly during its first phase, which focused on coal-based power generation. Of the 13 GW of power added to Pakistan's grid, 8 GW came from coal, while renewable sources like solar and wind contributed just 1.4 GW. But now both countries are looking to up the investment in green energy projects.
Notable among the projects under the CPEC framework include the Quaid-e-Azam Solar Park in Pakistan's Punjab region. Wind projects in Sindh and hydro plants in the north further diversify the energy mix, supporting the goal of 30 per cent renewables by 2030.
Demand for Chinese batteries
While a shift to Chinese wind turbines and solar panels has helped companies like Lucky Cement to reduce its carbon footprint, it still relies on fossil fuel generators to ensure a stable energy supply. To address this gap, Lucky Cement is investing 1.5 billion Pakistani rupees ($5.3 million) in Pakistan's largest battery energy storage system (BESS), supplied by China's Contemporary Amperex Technology Co Ltd (CATL). The 20.7 MW system will store renewable energy for use during off-peak hours or in case of grid instability, and it will be capable of powering 20,000 homes for one hour when fully operational.
As the prices of wind, solar, and battery technologies continue to fall, Lucky Cement expects a faster return on its investment, allowing the company to further increase its use of clean energy. Karachi-based Diwan International has reported a 33 per cent drop in the price of 5 kWh BYD batteries, making them more accessible to wealthier households, mosques, and businesses.
The challenges
However, the widespread adoption of renewable energy in Pakistan is not without its challenges. While solar power is becoming more affordable, battery storage remains costly, limiting its reach to lower-income households. The Pakistani government has taken steps to address these issues, including slashing industrial tariffs and offering surplus grid power to sectors such as crypto mining and AI data centres.
Despite these measures, the divide between wealthier users shifting to solar and poorer households struggling with rising bills continues to widen. Moreover, attracting clean energy investment in Pakistan has become more difficult. Since the pandemic, only $4.86 billion of Chinese energy capital has flowed into Pakistan, much of it directed towards a single nuclear project in Chashma.
Lucky Cement's shift to renewable energy supports the IMF's push for cleaner, more sustainable energy. This move also benefits Chinese companies, as they play a key role in supplying the solar, wind, and battery technologies driving Pakistan's green energy future.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

First Post

33 minutes ago

• First Post

With a 2-hr closed-door meeting, Trump may have made it difficult for Asim Munir

While their meeting has been seen as a sign of US-Pakistan bonhomie, US President Donald Trump might have put Pakistani Army chief Asim Munir in a difficult position: Munir risks compromising ties with China with the turn to the United States and Trump's demands go against longstanding Pakistani foreign policy. read more Pakistan's Field Marshal Syed Asim Munir salutes after laying wreath on the martyrs' monument during a guard of honour ceremony at General Headquarters (GHQ) in Rawalpindi. AFP While their meeting is definitely a sign of the brewing US-Pakistan bonhomie, US President Donald Trump appears to have put Pakistani Army chief Field Marshall Asim Munir in a difficult spot: while Trump's offerings are generous, his demands are taxing and risk compromising longstanding Pakistani position. Trump held a two-hour-long meeting with Munir on Wednesday, which was seen as a breakthrough in the US-Pakistan relationship. For one, Trump wants Pakistan to distance itself from China and pivot to the United States. That is a non-starter for Pakistan as China is invested so much in the country economically, politically, and militarily that distancing is not just infeasible but unthinkable. STORY CONTINUES BELOW THIS AD However, Trump's outreach to Pakistan —and offers— don't come for free. The risks for Munir are also substantial. Trump puts Munir in difficult spot While Trump made generous offers to Munir, he also sought substantial returns on his investment. Trump sought Pakistan's military bases and seaports from Munir in exchange for fifth-generation fighter planes, significant financial aid, and new trade and security deals, according to CNN-News 18. Trump told Munir that the offer rests on the condition that Pakistan would curtain dealings with China and Russia. A source further said that Trump would want Pakistan to be on the US side if he would decide to join Israel in attacking Iran. ALSO READ: Trump wants military bases from Munir, offers security-trade deals in US-Pak reset: Report While Trump's offerings are great, they put Munir in a tough spot as accepting these offers would mean diluting yearslong relationship with Pakistan and undoing the longstanding policy regarding Israel. Consider these facts: China accounts for around 23 of all Pakistan's trade, China is the largest source of foreign investment in Pakistan with a share of around 40 per cent, and just one project, China-Pakistan Economic Corridor (CPEC), adds 2-2.5 per cent of Pakistan's economy. Moreover, while Pakistan has historically used Western weapons, the military has been increasingly armed by China in recent years . In the past five years, around 80 per cent of Pakistan's military imports have been from China. STORY CONTINUES BELOW THIS AD With such dependence, it is impractical —if not impossible— for Munir to curtail ties and engagement with China and replace it with the United States as the principal partner of the United States. But, once you have had an audience with Trump and received such offers, it is not easy to bluntly say no. That means that either Munir would lose face in front of Trump by refusing the offers or he would try to reach middle ground that could upset both Trump and Xi Jinping of China. Trump seeks reset in US-Pakistan ties With his meeting with Munir, Trump has made it clear that he is seeking a reset in US-Pakistan ties. In an unprecedented meeting that lays bare who truly runs Pakistan, Trump held a meeting at the White House with Munir on Wednesday. This was the first time a President of the United States held a direct, formal meeting with a Pakistani army chief. Three previous army chiefs, Ayub Khan, Zia-ul-Haq, and Pervez Musharraf, held meetings with the US president but only when they were heads of state while running a military regime after a coup — not in capacity as army chiefs. STORY CONTINUES BELOW THIS AD The reset in US-Pakistan relationship has come at a time when Trump's policies and actions have soured times with India . He has not just continued to falsely claim mediation in the India-Pakistan conflict last month but has also hyphenated India and Pakistan, intervened in the Kashmir dispute, and made deals with jihadists from West Asia to South Asia that adversely affect India's security interests. ALSO READ: Beyond Pakistan: Trump's open embrace of jihadist forces across Asia a new headache for India However, as mentioned above, Trump is not making offers but also seeking substantial returns. South Asia analyst Michael Kugelman describes it as a 'classic Trump' give-and-take approach. 'There's been US-Pakistan engagement on crypto, minerals and counter-terrorism, and Trump takes a deep personal interest in all of these. This is classic Trump: 'What can you do for me? What can I get out of this?' Kugelman, a Senior Fellow at Asia Pacific Foundation of Canada, told Guardian. STORY CONTINUES BELOW THIS AD

News18

an hour ago

• News18

Did ICICI Bank Try To Acquire HDFC? What Deepak Parekh Reveals

Last Updated: 'I remember you talking to me said ICICI started HDFC. 'Why don't you come back home?' That was your offer,' Parekh said in interaction with Ex-ICICI CEO Chanda Kochhar. ICICI Bank once tried to merge housing finance firm HDFC with itself before its reverse merger with its own banking arm, HDFC Bank former chairman Deepak Parekh has revealed. In a YouTube video, Parekh, in an interaction with ICICI Bank former MD & CEO Chanda Kochhar, said, 'I remember you talking to me once…you said that ICICI started HDFC. 'Why don't you come back home?' That was your offer." However, Parekh said he declined the offer, saying 'it won't be fair or proper with our name and the bank and all". He also said the HDFC Bank-HDFC reverse merger, which was completed in July 2023, was primarily driven by regulatory pressure. 'The RBI supported us and they pushed us into it to some extent and they helped us…there were no concessions, no relief, no time, nothing but they helped us to go through the process and get the approval," Parekh said. On the reverse merger, Parekh called it 'a sad day and a happy day". He added, 'It's good for the institution. It's good for the country to have large banks. Look at how large Chinese banks are. We have to be bigger, larger in India." Describing the merger as good for the institution, he said, it is good for the country to have large banks. Indian banks must grow through acquisitions to become stronger in future, he added. HDFC Ltd, the parent entity of HDFC Bank, merged with its banking subsidiary to create the country's biggest private sector lender. The merger became effective from July 1, 2023. With the reverse merger, the 44-year-old institution HDFC Ltd faded into memory lane. Interestingly, the creation of HDFC Ltd was financially supported by erstwhile ICICI Ltd, the parent entity of ICICI Bank. The Reserve Bank of India had classified large NBFCs like HDFC, which then held assets exceeding Rs 5 lakh crore, as systemically important — well above the Rs 50,000-crore threshold. (With Inputs from PTI) First Published:

Time of India

an hour ago

• Time of India

Rise of 'MAGA Mark'? Why Meta employees 'horrified' as CEO Mark Zuckerberg ditches his T-shirts for luxury jackets, $900K watch

Meta employees are reportedly 'horrified' by CEO Mark Zuckerberg's support for the Trump administration and his new, more conservative avatar. As per a Financial Times report, the billionaire has reportedly undergone a political transformation that has left employees 'grieving' and feeling 'horror and betrayal.' An Unsettling Shift in Workplace Culture More than 40 current and former Meta employees, most of whom requested anonymity, reportedly shared their concerns with FT , painting a grim picture of the internal environment. The culture at Meta, once shaped by Zuckerberg's image as a casual, innovation-driven tech leader, is now seen as shifting toward a space that some insiders feel is more aggressive and ideologically rigid. These employees described the atmosphere as emotionally chaotic, with many staffers feeling alienated by the company's perceived new direction. From Geek Icon to Conservative Symbol Zuckerberg, once known for his low-profile fashion and engineering-centric public persona, is now being linked with far-right media figures and hyper-masculine influencers. He has built friendships with prominent names associated with the "manosphere"—a network of online voices that critique progressive values and emphasize traditional masculinity. UFC president Dana White and podcaster Joe Rogan are reportedly among Zuckerberg's close associates in this ideological space. The CEO's evolving personality has even earned him a satirical nickname among employees: 'MAGA Mark.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 40세 넘고 PC만 있으면? 이 게임 완전 내 거임! Hero Wars 플레이하기 Undo Recently, a video of Zuckerberg calling corporate culture in the US, "culturally neutered" and clamouring for more "masculine energy," in Rogan's podcast has gone viral. Internal Pushback and Tense Exchanges The unease reached a peak during a meeting where Zuckerberg's comments on a Rogan podcast were brought up. In the interview, he called for a boost in 'masculine energy' at the workplace—statements that drew criticism and jokes, including a comedian dubbing him the 'emperor of the Broman Empire.' When employees questioned this ideological turn, Zuckerberg allegedly responded with a brusque dismissal, indicating that dissenting opinions wouldn't be entertained. A Dramatic Image Makeover The Financial Times notes that Zuckerberg's outer transformation has mirrored his political one. He's reportedly traded his trademark plain grey T-shirts for flashier attire—luxurious shearling jackets, gold accessories, and even a high-end $900,000 Greubel Forsey timepiece. The tech mogul has also altered his appearance, reportedly replacing his clean-cut look with a vibrant, styled ginger mullet—an image widely circulated and commented upon in media outlets like The Daily Beast. Possible Role in Trump's Inner Circle Sources also revealed that there have been behind-the-scenes conversations about Zuckerberg potentially joining Trump's advisory panel on science and technology. A political insider told FT that at various functions, former President Donald Trump enjoys showcasing Zuckerberg, suggesting a deepening rapport. Driven by Comparison with Elon Musk? Some Meta staff believe the CEO's transformation may stem from professional rivalry. As Elon Musk continues to be celebrated as an audacious visionary in the tech community, Zuckerberg is reportedly striving to revamp his image to gain similar admiration. According to one insider, the social media magnate has long desired broader public approval—a need that may be influencing his current trajectory.