Pakistan’s solar boom adds pressure on Chinese-backed coal plants: report

Business Recorder, citing a Bloomberg report, says Pakistan's fast-growing use of solar power is adding strain to the troubled power sector. Cheaper distributed generation is cutting demand for grid electricity, weakening utility finances and putting Chinese-backed coal plants under pressure. The report points to Port Qasim, near Karachi, where rooftop panels now cover an industrial zone of about 400 companies alongside a coal-fired station.

Ember, an energy think tank, puts solar at around 20% of national power output in 2025, up from about 3% in the early part of the decade. NEPRA data shows power consumption at distribution companies fell almost 12% in the 12 months to July 2025 compared with three years earlier. Arrears owed to Chinese-backed power plants exceeded $1.5 billion by August, according to an official cited by the report.

Energy Minister Awais Leghari said Islamabad wants the power-sector debt stretched over a longer period rather than reduced, and expects no haircut. Chinese officials have so far been reluctant to offer major concessions, because these could cause losses for state-owned firms and banks. Refinancing and repurposing under-utilised plants are among the options under consideration.