Renewable Energy Policies in Pakistan: A Political Economy Review

Abstract

This review examines the reasons behind Pakistan's inability to harness its considerable Renewable Energy (RE) potential by analyzing the political economy of its energy sector through the analytical frameworks of path dependency, rent seeking/state capture, and energy justice. Drawing on academic and grey literature, it concludes that previous reforms and investments have established an expensive, fossil fuel-dependent system. Wealthy and influential elites in Pakistan exploit energy policies for their advantage, while institutional incapacities affect efficiency. As a result, technological progress remains sluggish while millions are deprived of electricity and energy burdens are inequitably distributed. This review synthesizes these challenges highlighting the imperative for institutional reform and the need to address governance and distributional aspects in Pakistan's clean energy transition.