Pakistan could face economic losses of up to 6 percent of its GDP by 2050 if urgent climate action is not taken, according to a new report.
The study released by the Competition Commission of Pakistan highlights the country’s growing vulnerability to climate change and its long-term economic risks.
Titled “Unlocking Green Potential: A Market Competition Study of Solar Energy in Pakistan,” the report warns that floods, heatwaves, and water scarcity could severely impact economic growth.
Despite vast potential, solar energy contributes only about 2 percent to Pakistan’s total electricity generation. Regions like Balochistan and Sindh receive abundant sunlight but remain underutilized.
The report identifies solar energy as a key solution to reduce emissions, lower electricity costs, and strengthen energy security across the country.
It also highlights strong opportunities in rural and agricultural sectors, where solar power can improve productivity and provide reliable electricity to underserved communities.
However, challenges such as weak transmission systems, policy uncertainty, and financial limitations continue to hinder large-scale solar adoption in Pakistan.
Experts warn that without clear policies and stronger market support, Pakistan risks missing a crucial opportunity to build climate resilience and sustainable growth.
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