The government of Balochistan’s vision to promote initiatives focused on climate change mitigation, adaptation, and sustainable development can only be achieved through tangible investments in clean energy.
While the establishment of a Climate Change Fund represents a positive and timely step, its impact will remain limited unless complemented by broader structural reforms. In particular, creating a conducive environment for investment — through regulatory simplification, institutional support, and improved ease-of-doing-business — is critical to attract both domestic and international investors to actively participate in the province’s green transition.
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Balochistan covers almost 45 per cent of the overall landmass of Pakistan, with a 770 km coastline. Among other potential areas, clean energy opportunities in the province are abundant, with solar, wind, tidal and wave energy being potential renewable energy resources. The province receives some of the highest solar radiation levels in the world, averaging 6–8 kWh/m² per day, which makes it ideal for solar power projects. According to studies, there is a capability of generating approximately 1.2 million MW of solar power. The region is mostly arid with very low precipitation annually and the presence of ample amounts of sunlight throughout the year.
Solar energy is followed by wind energy, wherein the coastal areas — the Nokkundi area of district Chagai, for instance — and some other wind corridors offer golden opportunities in wind energy production. The wind speed recorded ranges between 6 and 7 m/s with a wind power generation potential of around 20,000 MW in only a few corridors.
According to studies, Balochistan possesses the potential for wind energy development of approximately 146,145 MW across its territorial expanse. Of this capacity, nearly 63,700 MW has been identified as technically and economically viable for large-scale, cost-effective wind power generation. This resource base highlights Balochistan’s strategic importance in Pakistan’s shift towards renewable energy, providing significant prospects for sustainable electricity generation and long-term energy security.
Harnessing Balochistan’s natural advantage could not only diversify Pakistan’s energy mix but also create new avenues for investment and sustainable development
Moreover, tidal and wave energy also represent an untapped renewable resource in Balochistan, having the potential to emerge as a significant contributor to the clean energy market. This sector is capital-intensive, but private investment can fill this gap.
Harnessing the above natural advantage could not only diversify Pakistan’s energy mix but also create new avenues for investment, economic growth, and sustainable development. In addition, Balochistan offers diverse opportunities for investment in the energy sector. Potential areas include the establishment of renewable off-grid power plants, Liquefied Petroleum Gas (LPG) terminals, and Liquefied Natural Gas (LNG) distribution centres; all of these sectors ensure return on investment.
Currently, only 36 per cent of the province has electrical connectivity, creating considerable scope and space for decentralised LNG distribution networks to cater to remote communities, mining operations, and emerging industries. Furthermore, the province’s strategic location and geography boost its potential: Gwadar Deep Sea Port, the Taftan border, and other cross-border trade nodes serve as ideal locations for LPG terminals, thereby supporting alternative energy production.
Encouraging renewable energy investments in Balochistan also opens avenues for generating carbon credits under international climate financing mechanisms. By replacing fossil fuel-based power with wind, solar, and other clean energy sources, the province could significantly reduce greenhouse gas emissions and monetise these reductions through carbon markets. This not only enhances the financial viability of renewable projects but also contributes to Pakistan’s commitments under the Paris Agreement while attracting additional foreign investment linked to sustainability goals.
Unlocking the renewable energy potential of Balochistan holds significant promise for addressing Pakistan’s persistent energy crisis. To capitalise on this opportunity, the Energy Department of Balochistan, in collaboration with the Industries Department and the Balochistan Board of Investment and Trade (BBoIT), should formulate a comprehensive and business-friendly strategy aimed at facilitating private sector participation.
Such a strategy should not only promote investment in renewable energy projects but also encourage the establishment of industries, businesses, and small and medium-sized enterprises, stimulating economic growth, generating employment, and fostering sustainable development. Moreover, infrastructural development, particularly in the areas of communication networks, water management, and related facilities, should be prioritised within the Public Sector Development Plans of both the federal and provincial governments.
Furthermore, the Public-Private Partnership Authority can play a pivotal role in this process by extending support through viability gap funding mechanisms and facilitating access to bank financing for both provincial and national investors. At the same time, creating a conducive environment marked by improved security, regulatory predictability, and ease of doing business will be critical to attract foreign direct investment. International investors are more likely to engage in renewable energy ventures in Balochistan if assured of institutional support, risk mitigation, and long-term policy stability.
The writer is a public policy analyst based in Quetta
