This focus paper explores a range of pathways that Pakistan could pursue, including doubling down on reinforcing a centralised grid or pivoting towards a more distributed model.

While both offer benefits, this paper recommends a strategic hybrid of modernising the grid while unlocking distributed solar and storage. This will cut costs, build resilience and crowd-in investment. With credible implementation, confidence will follow, and with confidence, inclusive prosperity, and resilience to future shocks.

Through a Letter of Intent, the Government of Pakistan has committed to working with the Pakistan China Institute (PCI) and the Carbon Trust to take a system level approach to the country’s energy transition. A transition that is just, sustainable and economically robust. Energy planning software company TransitionZero will also contribute to this work.

Now is the moment for funders to demonstrate bold, collective leadership. We call on development banks, philanthropic institutions, and financial actors to support Pakistan’s energy transition not as emergency relief, but as a strategic investment in long term energy security, fiscal resilience, and inclusive growth.