Pakistan’s Solar Capacity Reaches 8,000 MW as Government Pushes Green Energy and Economic Reforms
Pakistan — Federal Minister for Finance, Senator Muhammad Aurangzeb, has said that the country’s solar energy capacity has reached 8,000 megawatts, with further expansion of renewable energy planned as a key national priority.
Speaking at a panel discussion on Pakistan’s economy at Harvard University, the finance minister highlighted that despite global economic disruptions, including tensions in the Middle East, Pakistan maintained stability in its energy supply system.
He noted that after initial subsidies, energy pricing reforms and targeted subsidies are being implemented to improve efficiency. Aurangzeb also described Pakistan’s Eurobond repayment as a “non-event,” calling it a sign of growing confidence in the country’s external financial stability.
The minister said that port activity at Karachi Port has increased significantly, while remittances through the Roshan Digital Account reached record levels in March. However, he stressed that remittances alone are not a long-term solution and emphasized the need to focus on boosting exports.
Aurangzeb further stated that structural reforms remain the biggest challenge, particularly in tax system modernization. Efforts are underway to increase the tax-to-GDP ratio through digitalization and automation within the Federal Board of Revenue (FBR).
He also highlighted the need to end permanent industrial subsidies, adopt a competitive economic model, and pursue tariff reforms to better integrate with global markets. According to him, legislation for agricultural income tax has been completed across all four provinces, and 28 state-owned enterprises have been referred for privatization.
The finance minister also pointed to population growth and climate change as major challenges, reiterating that improving the business environment remains a top government priority.
