Pakistan Spent Over 90% of $128 Billion Energy Import Bill on Fossil Fuels: Report

Pakistan directed the overwhelming majority of its energy import spending toward fossil fuels over the past several years, according to a new market review that highlights the country's slow shift toward cleaner sources. The "Renewables First, Pakistan Energy Market Review, 2026" (PEMR26) report states that more than 90 percent of the nation's $128 billion energy import bill between FY20 and FY26 went to fossil fuels.

In absolute terms, fossil energy imports accounted for approximately $117 billion of the total, while renewable energy technologies received around $11 billion. The fossil fuel category covers crude oil, refined petroleum products, imported coal and liquefied natural gas (LNG).

The renewable segment includes imports of solar panels, wind turbines, inverters and lithium-ion batteries. According to the report, imports of renewable energy equipment have risen considerably since FY20, but their overall value remains far below the amount spent on fossil fuels.

The spending pattern carries direct consequences for Pakistan's foreign exchange reserves. A substantial share of import expenditure continues to go toward fuels that expose the country to international commodity price swings and supply disruptions, leaving the economy vulnerable to external shocks.

The findings underscore the scale of the challenge facing Pakistan as it seeks to diversify its energy mix and reduce reliance on imported fuels. Despite growing interest in solar and other clean technologies, the financial commitment to renewables remains a small fraction of the country's overall energy import outlay.