The Political Economy of Renewable Energy Policies in Pakistan

Abstract

This review examines the reasons behind Pakistan's inability to harness its considerable renewable energy potential by analysing the political economy of its energy sector through the lenses of path dependency, rent seeking/state capture, and energy justice. In view of the 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 advancements are slow-moving while millions are deprived of electricity and energy burdens are disproportionately distributed. This review consolidates these challenges to highlight the imperative for institutional reform and the need to address governance and distributional aspects in Pakistan's clean energy transition.