ISLAMABAD: Germany has urged Pakistan to explore avenues for enhancing the effectiveness of the existing climate cooperation framework between the two countries, with a particular focus on the energy sector.
The matter was discussed during a meeting between Federal Minister for Energy (Power Division) Sardar Awais Ahmed Khan Leghari and German Ambassador Ina Lepel at the Power Division, where the minister briefed the envoy on ongoing reforms and development initiatives in Pakistan’s energy sector.
Leghari stated that around 55 percent of Pakistan’s energy mix currently comes from clean sources, adding that the government aims to increase this share to 90 percent over time.
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He noted that increased reliance on indigenous energy resources is strengthening the country’s energy self-reliance and sustainability.
The minister further informed that approximately 800 megawatts of renewable energy is being planned through a competitive market mechanism, adding that the government will not pursue new power purchases beyond already committed agreements. He also said Pakistan achieved close to 70 percent energy self-sufficiency last year.
Sharing updates on power sector reforms, Leghari said that privatization of distribution companies (DISCOs) is progressing, with three out of eleven entities selected for the initial phase, while more will be included subsequently.
Highlighting the importance of modern energy solutions, the minister emphasized the role of battery energy storage systems (BESS) in ensuring grid stability. He noted that a BESS project for Lahore Electric Supply Company (LESCO) is under consideration with support from Germany’s development agency, GIZ.
He also underscored the need for substantial investment in transmission infrastructure, stating that expansion and upgradation of the network require significant financial resources. In this regard, the government is engaging the Pakistan Business Council and other private stakeholders.
Leghari proposed the establishment of a Pakistan-Germany Energy Cooperation Framework to further deepen bilateral collaboration and stressed the importance of creating enabling conditions for German financial institutions to invest in Pakistan’s energy sector.
Ambassador Ina Lepel responded that a climate cooperation framework already exists between the two countries, which includes energy sector collaboration and suggested that both sides should work to further enhance its effectiveness.
She revealed that a project worth around 300 million euros is currently under implementation, while additional initiatives are being prepared for 2027. The ambassador also reiterated Germany’s interest in small hydropower, solar and sustainable energy projects, while appreciating Pakistan’s ongoing reform efforts.
Both sides agreed to strengthen technical-level engagement in the energy sector and maintain close coordination, with plans to meet again in the near future.
Copyright Business Recorder, 2026
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