Pakistan Becomes Top Destination for Chinese Solar Panels, Outpacing Many G20 Nations: Report

ISLAMABAD: Pakistan has imported more solar panels from China in the past five years than many G20 countries, with over 16 gigawatts (GW) shipped in 2024 alone, according to a new report by think tank Renewables First.

Titled “Leader of One or Leader of None – China’s Choice for Clean over Coal in Pakistan”, the report reveals that more than 39 GW of solar panels—almost entirely from China—have entered Pakistan since 2019. That volume surpasses three-quarters of Pakistan’s current installed generation capacity, signaling a dramatic shift in the country’s energy landscape. For further details, see Renewables First publications.

The report highlights a “Solar Rush” in Pakistan, largely driven by households and businesses installing panels on rooftops, farms, and factories—not government mandates. This grassroots solar boom has been fueled by affordable Chinese technology, open market competition, and favorable trade conditions.

“China is now the de facto global supplier of renewable energy tools,” the report notes, adding that as the U.S. retreated from global climate leadership, China stepped in to provide infrastructure enabling developing nations to transition to clean energy.

However, this solar surge carries strategic contradictions. Pakistan continues to host billions of dollars’ worth of Chinese-financed coal power plants—assets increasingly underutilized. Some coal plants operated at just 4% capacity in 2024, while capacity payments surged, raising electricity costs for consumers still dependent on the grid. More on grid challenges.

“China’s solar panels are outcompeting China’s power plants,” said lead author Muhammad Basit Ghauri. “Pakistan is now ground zero for a global energy disruption—where distributed, people-powered solar is undermining centralized coal-fired generation.”

The report stresses that Pakistan urgently needs storage solutions, smart grid upgrades, local manufacturing capacity, and financial mechanisms to transition away from stranded coal assets.

“If China can support Pakistan through this transition,” the report concludes, “it won’t just be enabling a national energy transformation—it will be shaping a new, equitable energy paradigm for the entire Global South.”