Staff Report
ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Wednesday directed authorities to ensure solar systems are installed in all government buildings in Islamabad within seven weeks as the South Asian country is struggling to reduce its dependence on imported fuel.
In December last year, PM Shehbaz announced Pakistan’s plan to solarize government departments and buildings by April 2023 to reduce the country’s sizeable fuel import bill.
With a little over $ 3 billion in reserves, Pakistan has been desperately trying to shore up its foreign reserves by reaching a deal with the International Monetary Fund over the past few months. With prospects of default and a fast-depreciating currency, Pakistan is actively trying to stave off a balance of payments crisis.
During the last fiscal year, according to the Pakistan Bureau of Statistics (PBS), Pakistan’s energy imports were $23.3 billion, 29 percent of its total imports. The country imported energy related products worth $7.7 billion during the current fiscal year.
Solarization to save Pakistan’s forex reserves
The Prime Minister has described solar energy as a “low-hanging fruit” which can be used to ease pressure on Pakistan’s forex reserves. He chaired a meeting on Wednesday to review progress on solarizing government instalations, with the ministers of finance, defence minister, and special assistants in attendance.
“The government is making serious efforts to reduce the burden on the masses with low-cost and environment-friendly electricity,” he added.
Officials told Sharif that solar panels would be installed in 496 government buildings in Islamabad, 340 in the country’s large cities, including Faisalabad, Karachi, Lahore, and Quetta 1,255 buildings in other parts of the country.
To cut reliance on imported fuel, Pakistan plans to increase the share of clean energy to 60 percent in its energy mix by 2030 to save the foreign exchange. According to official data, the share of renewable energy is only about 4 percent.
