Pakistan’s energy sector, plagued by soaring electricity costs, circular debt, and over-reliance on fossil fuels, is a primary driver of its economic crisis. To address these systemic inefficiencies, this article recommends implementing utility decoupling within a market-based model for Independent Power Producers (IPPs) and Distribution Companies (DISCOs). Paired with targeted policies to promote distributed solar systems, these structural reforms will incentivize renewable energy adoption, stabilize utility finances, and ensure an equitable transition to a clean energy future.
