ISLAMABAD, May 10 (APP):Experts at a policy dialogue said that coherent policies, domestic resource mobilization, and targeted social protection are essential to ensure a just and sustainable energy transition in Pakistan.
The policy dialogue on ‘Socioeconomic Prosperity amid the Transition to an Environmentally Sustainable Economy”, was jointly organized by Sustainable Development Policy Institute (SDPI) and United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the report on Economic and Social Survey of Asia and the Pacific 2026 was also showcased on the occasion, said a press release.
In her keynote address, Minister of State for Climate Change Dr Shezra Mansab Ali Khan Kharal emphasized that energy transition must be linked with socioeconomic development to ensure productivity, price stability, and inclusive growth. She reiterated that limited fiscal space necessitates mobilizing private investment, international climate finance, and innovative funding mechanisms.
She stressed the need for designing a ‘just, financeable, and realistic’ transition pathway, guided by clear priorities, balanced trade-offs, and practical implementation strategies. She also highlighted the need for addressing political economy challenges, including resistance from vested interests and distributional impacts of reforms.
The Minister said that a successful transition requires integrated policymaking, protection of vulnerable populations, and sustained coordination across federal and provincial levels, alongside stronger regional cooperation to enhance implementation capacity.
Dr Sajid Amin Javed, SDPI Deputy Executive Director, said that global shift towards green energy must be integrated into Pakistan’s economic governance framework. Emphasizing on policy coherence across social, economic, and energy sectors, he warned of unintended trade-offs and called for protecting vulnerable populations during the transition. He noted that weaknesses in the global energy architecture and rising vulnerabilities make a clean energy transition imperative.
Dr. Hamza Ali Malik, UNESCAP Director, highlighted that despite Asia-Pacific contributing around 53 per cent of global economic growth, the region faces rising risks from geopolitical tensions, inflation volatility, and slowing growth. Presenting key policy recommendations, he called for enhancing economic resilience through targeted, temporary, and transparent fiscal support for vulnerable groups, while anchoring inflation expectations.
He underscored that health, education, and social protection should remain central to policy priorities, particularly as conflicts especially in the Middle East threaten remittances, employment, and purchasing power. He said energy transition is essential for climate action, noting that climate-related goals remain off track in the region.
Dr Malik proposed a three-step framework for achieving both energy transition and socioeconomic prosperity, i.e. identifying clear transition goals such as reducing fossil fuel dependence and expanding renewable energy, addressing political economy challenges including institutional fragmentation and resistance from incumbent industries, and sustaining reform momentum through behavioural incentives and stronger regional cooperation. He further suggested that countries should rely more on domestic and regional demand, integrate macroeconomic stability with energy policies, and adopt consultative and context-specific transition pathways.
Dr Samuel Rizk, UNDP Resident Representative, highlighted Pakistan’s evolving socioeconomic landscape following recent floods and political transitions. He stressed the need to operationalize frameworks such as URAAN Pakistan and Nationally Determined Contributions while questioning implementation mechanisms and financing strategies. He emphasized that over-reliance on international financing is unsustainable, calling for greater domestic resource mobilization to fund development and climate initiatives. He said energy transition investment is an opportunity to stimulate economic growth.
Dr Shazia Ghani from the Prime Minister’s Office underscored structural constraints including limited fiscal space, technological gaps, and challenges in accessing climate finance instruments. She called for realistic and phased transition targets aligned with Pakistan’s capacity, noting that market-driven initiatives like solar adoption have shown promise. She emphasized moving beyond reliance on monetary policy alone and focus on implementation of reforms.
Raja Mohsin Hasan, Economic Advisor, Ministry of Finance, termed the report’s recommendations reflective of ground realities and supported strengthening policy responses to economic challenges. He highlighted the need to sustain growth momentum and pointed to emerging opportunities such as electric vehicle investments.
In his closing remarks, UN Resident and Humanitarian Coordinator Mohamed Yahya underscored that energy security has become a national security issue. He said that energy independence and resilience are prerequisites for economic development and called for accelerating the transition through a mix of incentives and strategic prioritization.
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