THE World Economic Forum`s Energy Transition Index (ETI) 2025 offers a structured, evidence-based lens through which one may examine how 118 countries are navigating the evolving global energy landscape. It assesses both system performance, including energy security, equity and sustainability, and transition readiness, which reflects the strength of policy, infrastructure, investment, innovation and human capital.

While this year`s findings point to modest gains in access and clean energy uptake,progress on deeperstructural enablers has slowed down. The result is a widening gap between short-term improvements and long-term resilience, raising concern over the capacity of many systems, Pakistan`s included, to scale the transition effectively.

Pakistan`s ETI ranking has improved slightly to 101st, up from 113th in 2024 and 107th in 2023, with a score of 48.5.

However, the country remains well below the global average of 56.9, highlighting the needfor accelerated andintegrated reforms.

Pakistan`s system performance score of 55.5 reflects moderate progress in access and affordability, likely tied to rural electrification and subsidies. But its transition readiness score of 38.1 reveals deep-rooted gapsin enablingfactors, particularly in policy coherence, infrastructure readiness,innovation and capital mobilisation.

The report has placed Pakistan in the `Middle East, North Africa and Pakistan` region, where equity is relatively strong, but constrained by grid inflexibility, fossil fuel dependence, subsidy lock-ins and institutional capacity gaps. These all challenges are evident on the ground.

Despite over 45,000MW of installed capacity, plant utilisation remains under 34 per cent, largely due to an ageing grid that can evacuate only 25,000MW.

In FY2023-24, transmission and distribution (T&D) losses hit 18.31pc, well above the 11.77pc National Electric Power Regulatory Authority (Nepra) threshold, adding Rs280 billion to circular debt.

The gap between supply and suppresseddemand, which is driven by high tariffs, weak infrastructure and unreliable supply, continues to destabilise the system. As such, loadshedding persists, not just for lack of power, but due to the entrenched inefficiencies.

Meanwhile, the consumers are quietly leading a shift. In 2024, solar panel imports surpassed 17GW, and net-metered systems nearly doubled. This trend must be supported through stable policies, smart metering and grid upgrades. Time-ofuse tariffs, industrial pricing reform and demand diversification are essential to optimise the use of existing capacity.

Though the ETI does not directly score storage, smart grids, bidirectional systems and energy storage are critical for integrating renewables. Paired with technology transfer, a strong pushfor indigenous development, local manufacturing and innovation will reduce reliance on imports, enhance energy security, and create green jobs.

Pakistan`s transition also hinges on finance. Instruments like green bonds, concessional loans, carbon markets, Just Transition (JT) mechanisms, and Coal-to-Clean Credits (CCCs) must align public-private capital with long-term sustainability. Energy-sector reform represents a development imperative.

At stake are macroeconomic stability, green jobs, energy equity and Pakistan`s standing in a climate-driven global economy. The direction is clear. What is needed now is readiness, not rhetoric.

Shafgat Hussain Memon Jamshoro