World Bank Urges Energy Cuts in Pakistan’s Industries

The World Bank has called for urgent energy efficiency improvements across Pakistan’s major industrial sectors, including cement, textile, steel, fertiliser, and paper, to lower costs and support the country’s climate goals.

In its latest report titled “Pakistan Energy Efficiency: Industrial Energy Efficiency and Decarbonisation (EE&D),” the World Bank outlines a roadmap to help reduce energy waste and emissions in five of Pakistan’s largest industries.

The report is based on a detailed study carried out from mid-2022 to 2023. While some manufacturers have adopted energy-saving technologies, the report highlights that many others face challenges such as unclear policies, lack of financing, and limited technical knowledge.

The report notes that some businesses wrongly believe that energy efficiency increases production costs and affects competitiveness, especially when terms like “decarbonisation” are used instead of “energy savings.”

In the textile sector, dyeing and finishing processes are the biggest energy consumers. The World Bank recommends changes like fuel switching, electrification, and modern technologies that could reduce energy use by 50–60 percent and emissions by up to 13 percent.

Cement Sector Can Cut Emissions Further with Upgrades

Cement plants have begun using waste heat recovery systems, but further upgrades could slash emissions by 3–35 percent and energy usage by 6–20 percent, according to the report.

The fertiliser industry remains heavily dependent on natural gas. The report warns that artificially low gas prices could discourage companies from investing in energy efficiency.

Pakistan’s steel sector, which uses scrap-fed electric induction furnaces, is relatively energy efficient but still has room for 5–12 percent emission cuts.

In the paper and pulp sector, which is growing at over 7 percent annually, adopting more advanced technologies could further reduce energy use.

The World Bank concludes that energy efficiency offers a critical opportunity for Pakistan to strengthen its industrial performance, cut emissions, and reduce energy costs—provided key financial and policy barriers are addressed.