Energy Efficiency & Conservation (EE&C) is the key to sustainable development. Insufficient financing due to fiscal constraints and limited focus at policy level on EE&C has restricted its vast potential for strengthening energy security in Pakistan. At the same time, financial sector is an important stakeholder in the Pakistan’s economy and can play a prominent role in bridging this energy efficiency finance gap.

Agriculture is an important sector of the economy which holds major share of country’s work force. The sector is suffering due to fluctuating energy prices, future energy security, and concerns on GHG emissions which present serious challenges for the sector. Agriculture sector is among the 05 strategic sectors for ensuring energy efficiency & conservations as per NEECA Act 2016.

Power sector accounts for the generation, transmission, and distribution of electricity to domestic, commercial, and industrial consumers. The transmission and distribution losses of Power and Natural Gas utilities in Pakistan are the highest in the region. The average power distribution losses in Pakistan are about 20% and for some DISCOs, these losses reach 38%. The efficiency gains, as well as reduction in transmission and distribution losses both from electricity and gas, can save PKR 140 billion annually.

Provision of reliable, affordable, efficient, secure, and clean energy has become the primary driver for sustainable economic growth of a country. In contrast, Pakistan energy sector is facing the challenges of high energy losses, higher energy prices, heavy reliance on imported oil, increasing circular debt, reliance on obsolete technologies and lack of research and innovation.