Pakistan has sought technical and policy support from the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) to develop a credible Energy Transition Investment Plan, as the country accelerates efforts to cut fuel import dependence, tackle circular debt, and meet climate targets.
UN ESCAP will provide policy advisory and technical assistance to help Pakistan design a bankable investment roadmap for its energy transition. The support follows a recent scoping mission by the UN body, which visited Pakistan at the government’s request and held consultations with key ministries and development partners.
According to officials, discussions focused on Pakistan’s financing needs, policy gaps, and investment opportunities linked to shifting toward cleaner energy. The aim is to identify practical entry points for attracting long-term and sustainable funding.
Pakistan’s energy transition has become critical for economic resilience and fiscal stability. The country remains heavily reliant on imported oil, LNG, and coal, while circular debt in the power sector has crossed Rs. 2.6 trillion. Rising fuel imports and growing electricity demand by 2030 have intensified pressure on public finances, increasing the urgency of renewable energy expansion.
UN ESCAP noted that progress has been slowed by policy inconsistencies, continued fossil fuel reliance, and limited access to concessional financing, which has constrained investor confidence and delayed renewable projects.
The proposed Energy Transition Investment Plan is expected to prioritise green foreign direct investment and blended finance models that combine public, philanthropic, and private capital. Concessional financing, including low-interest loans and guarantees, has been identified as essential to make renewable projects viable, especially in underserved regions.
ESCAP also highlighted the importance of expanding financing instruments such as Green Eurobonds, Panda Bonds, and Green Sukuk, along with innovative pay as-you go models. Greater investment in grid modernisation will be central to reducing circular debt and integrating distributed solar and battery storage into the national system.
UN ESCAP said it is ready to support Pakistan through its Financing Energy Transition programme, which has already assisted countries such as Indonesia, Vietnam, and the Philippines. The programme combines analytical studies, capacity building, and regional policy dialogue to close financing gaps.
As one official noted, “A well-structured investment plan can unlock affordable finance and put Pakistan on a sustainable energy path.”
Officials believe that with UN ESCAP’s support, Pakistan can strengthen its energy mix, boost industrial competitiveness, and move closer to net-zero goals while unlocking long-term, sustainable financing solutions.
