By Muhammad Zulqarnain

As Pakistan implements URAAN Pakistan, its Five-Year National Economic Transformation Plan (2024-29), experts believe deeper cooperation with China in green energy will be crucial to lowering industrial production costs, boosting exports and advancing the plan's five strategic priorities—Energy, Environment, Education, Exports and e-Pakistan.

They say the next phase of Pakistan-China energy cooperation should move beyond expanding electricity generation and focus instead on renewable energy, industrial competitiveness, technology transfer and human capital development to support sustainable economic growth.

Speaking with Wealth Pakistan, Dr Abid Qaiyum Suleri, Executive Director of the Sustainable Development Policy Institute (SDPI), said the Pakistan-China Economic Corridor (CPEC) has already transformed Pakistan's power sector by addressing chronic electricity shortages.

He noted that since 2014, CPEC has attracted more than US$28 billion in energy investments, adding over 8,000 megawatts of generation capacity through coal, hydropower, solar and wind projects.

"With electricity shortages largely addressed, the focus should now shift towards renewable energy, smart grids, battery storage, industrial electrification and digital energy management," he said.

According to Dr Suleri, China, as the world's leading manufacturer of solar photovoltaic panels, batteries and electric vehicles, is well positioned to support Pakistan's transition towards a greener and more competitive economy.

He said expanding cooperation in renewable energy, local manufacturing, technology transfer and joint ventures would diversify Pakistan's energy mix, reduce dependence on imported fuels, strengthen energy security and create skilled employment opportunities.

Dr Suleri stressed that affordable and reliable electricity remains essential for improving the competitiveness of Pakistan's export-oriented industries, particularly textiles, agriculture and information technology.

He said greater cooperation in renewable energy-powered industrial zones, transmission modernisation, smart-grid technologies and industrial energy efficiency could reduce production costs, attract investment and strengthen export performance.

According to him, energy-sector reforms supported by green finance, technological innovation, skills development and technology transfer would also accelerate the implementation of URAAN Pakistan's 5Es framework.

Echoing these views, Shi Yuanqiang, Deputy Head of Mission at the Embassy of the People's Republic of China, told Wealth Pakistan that the Pakistan-China energy partnership established under CPEC has laid a strong foundation for achieving URAAN Pakistan's long-term development objectives.

He said Chinese investment has significantly expanded Pakistan's electricity generation capacity while improving the country's resilience to global energy market disruptions.

Looking ahead, Shi identified renewable energy, battery storage, electric vehicles, charging infrastructure and other clean-energy technologies as key areas for future bilateral cooperation.

He said the next phase of collaboration should place greater emphasis on technology transfer, joint research, vocational training, smart grids and local manufacturing of clean-energy equipment.

Developing domestic expertise in digital grid management, artificial intelligence, advanced manufacturing and clean-energy technologies, he said, would help Pakistan build a skilled workforce while enhancing industrial competitiveness.

Experts believe the future of Pakistan-China energy cooperation lies not simply in generating more electricity but in building a greener, technology-driven industrial economy. They say closer collaboration in renewable energy, innovation, local manufacturing and workforce development can help reduce production costs, strengthen exports and support Pakistan's ambition of becoming a US$3 trillion techno-economy by 2047.

Credit: INP-WealthPk