By Assist. Prof. Jun Deng & Prof. Dr. He Hongmei
As the global energy landscape undergoes profound transformation and climate change pressures intensify, China and Pakistan are forging one of the South Asian region’s most significant energy partnerships, one that could possibly reshape the region’s economy and serve as a model for international cooperation.
The Energy Crisis Gripping South Asia
South Asia, home to nearly a quarter of the world’s population and one of its fastest-growing economic regions, faces a critical energy paradox. While demand for power surges alongside economic growth, the region’s energy self-sufficiency remains severely limited compared to developed nations. Pakistan exemplifies this challenge. Prolonged power shortages have become the primary bottleneck constraining industrial upgrading and improvements in living standards. From bustling cities to remote villages, inadequate electricity supply has reduced enterprise productivity, deterred foreign investment, and limited employment opportunities. These are directly impacting citizens’ income and quality of life.
Yet beneath this crisis lies untapped potential. Pakistan possesses remarkable renewable energy resources that remain largely undeveloped. The country receives average daily solar radiation of 5 to 6 kilowatt-hours per square meter, offering photovoltaic development potential of approximately 130 gigawatts. Its wind energy reserves could support total installed capacity of 131.8 gigawatts, including about 43 gigawatts in southern Sindh Province alone. The gap between potential and reality stems from inadequate infrastructure, financing difficulties, and technology gaps, which are challenges that China-Pakistan cooperation aims to address.
China-Pakistan Energy Cooperation: A Partnership Built on Trust and Geography
China and Pakistan’s geographical proximity and decades of diplomatic friendship have created a unique foundation for energy collaboration. Since establishing relations, the two nations have maintained steadfast mutual trust, with Pakistan actively supporting China’s Belt and Road Initiative (BRI).
The China-Pakistan Economic Corridor (CPEC), a flagship BRI project, has evolved into the primary platform for this energy partnership. The corridor encompasses not only traditional oil and gas development but also power generation, renewable energy, and infrastructure connectivity, all supported by favorable institutional arrangements and policy frameworks.
China has demonstrated internationally leading capabilities in coal geological exploration, hydropower, coal-fired generation, and renewable energy, with landmark projects like the Eastern Russia-China Natural Gas Pipeline and Myanmar-China Crude Oil Pipeline showcasing its expertise. As the world’s largest investor in renewable energy, China has the capacity to help Pakistan achieve its renewable energy commitments while balancing economic development with environmental protection.
Meanwhile, the significance of China-Pakistan energy cooperation extends far beyond bilateral relations. By constructing cross-border power transmission systems and energy infrastructure, this partnership could establish a framework for regional energy connectivity throughout South Asia.
Such integration addresses a critical vulnerability: Pakistan’s long-term reliance on imported oil and natural gas exposes the nation to significant energy security risks and fiscal burdens. Developing domestic renewable resources through Chinese technology and investment offers a pathway to greater energy independence.
Moreover, as all South Asian nations face pressure to transform their energy structures under the Paris Agreement’s carbon neutrality goals, China-Pakistan cooperation in renewable energy represents concrete action on global climate commitments. More importantly, China-Pakistan energy cooperation sets a model for regional energy cooperation in South Asia. Strengthening energy cooperation enhances mutual dependence and ties among countries, contributing to regional stability and creating favorable conditions for South Asia’s long-term development.
The Road Ahead: From Construction to Transformation
The Pakistani government has expressed strong commitment to renewable energy development, reflecting growing passion for green and sustainable growth. Through deeper cooperation, both nations can jointly drive South Asia’s energy transition, with the CPEC serving as a platform to strengthen energy ties across the region.
This cooperation aligns with the inherent requirements of global energy governance system reform and the realistic needs of South Asian countries for common development. China-Pakistan energy cooperation is entering a new phase, shifting from initial project construction to deeper, broader collaboration across multiple dimensions.
Traditional Energy Expansion: Oil and gas cooperation will be further deepened, with expanded exploration, exploitation, and natural gas development establishing more stable long-term supply relationships.
Renewable Energy Revolution: Despite Pakistan’s vast solar and wind potential, installed photovoltaic and wind power capacity remained relatively small. China’s technological and industrial advantages position it to catalyze rapid renewable energy development.
Infrastructure Connectivity: Cross-border power transmission systems will enable electricity sharing between China and Pakistan, and eventually with other South Asian nations, optimizing regional resource allocation and improving energy utilization efficiency.
Industrial Chain Localization: Moving beyond project construction and product trade, future cooperation will focus on integrating upstream and downstream industrial chains. Chinese enterprises are expected to establish local production bases in Pakistan, covering silicon material processing, battery production, component assembly, and operation and maintenance services. Localized industrial chains can reduce project costs, provide strong support for Pakistan’s industrialization, and create genuine technology transfer.
Implementation Pathways: From Vision to Reality
Realizing this ambitious vision requires concrete action across several fronts:
Policy Coordination: Governments must establish closer communication mechanisms, holding regular consultations on energy development strategies, policy support, and project planning. Comprehensive cooperation agreements should clarify the scope, methods, goals, and timetables for collaboration.
Technology Transfer: A special technology exchange mechanism should facilitate the effective transfer of advanced energy technologies to Pakistan, including coal-fired power generation, renewable energy systems, and energy management capabilities. This includes detailed training programs through training, technical exchanges, and joint research.
Human Capital Development: Building vocational and technical training schools can cultivate local energy expertise. Chinese enterprises can invest in professional energy technology training institutions that serve as both training centers and hubs for technological innovation, while simultaneously contributing to local employment.
Supply Chain Integration: Chinese enterprises should build stable supply chain systems while encouraging Pakistani enterprise participation, creating development opportunities for local businesses and ensuring project sustainability.
Financial Innovation: Financial institutions in both countries should increase support for energy cooperation, exploring innovative mechanisms such as green bonds and carbon financing to provide flexible support for renewable energy projects.
Embracing Green Low-Carbon Development
While traditional energy projects retain short-term importance, renewable energy must be the long-term development direction. China and Pakistan should jointly formulate goals and roadmaps for renewable energy development, with China providing technical and financial support for the transition.
Establishing a certification and evaluation system for green energy projects, with unified standards aligned to international benchmarks, can ensure project quality and enhance international competitiveness. Additionally, strengthening connections with international energy organizations and financial institutions can enhance China and Pakistan’s voice in international energy affairs while securing additional financing options.
China-Pakistan energy cooperation stands at a historic juncture. The severe energy supply-demand imbalance across South Asia makes this partnership essential. The cooperation aligns with Pakistan’s development needs while contributing to peace and stability throughout the region. Though challenges remain, these obstacles can be overcome through strengthened policy coordination, enhanced technology transfer, optimized industrial chain frameworks, and robust long-term cooperation mechanisms.
Against the backdrop of global carbon neutrality commitments, China-Pakistan energy cooperation represents both a vital component of bilateral economic relations and a major force driving global green and low-carbon development. Through sustained effort and innovative cooperation methods, this partnership is poised to make significant contributions to the prosperity of both nations, the stability of South Asia, and sustainable development worldwide. As the energy transition accelerates and regional integration deepens, the China-Pakistan energy partnership may well become the template for how nations can collaborate to address shared challenges while building a more sustainable future for all.
—— The Authors are Assist. Prof. Jun Deng, Yunnan Academy of Social Sciences, China, and Prof. Dr. He Hongmei, Director of the Institute of South Asian Studies, Yunnan Academy of Social Sciences, China.
