ISLAMABAD: Rising electricity costs are prompting several large-scale industries to explore alternative energy options, with solar power emerging as a preferred choice due to its long-term cost efficiency.
Artistic Denim Mills Ltd informed the Pakistan Stock Exchange on Friday that it has commissioned a 2.32MW solar power facility and is developing an additional 2.57MW capacity, bringing its total planned solar generation to 4.89MW. The company said the initiative aims to reduce dependence on the national grid and manage energy expenses more effectively.
Pakistan’s energy tariffs are among the highest in the region, and many industrial units have reported difficulties in maintaining production levels. While some companies are shifting to renewable energy, smaller firms have scaled down operations or relocated to other countries, including Dubai, Vietnam, and Malaysia, citing energy affordability as a key challenge.
Solar power has seen notable expansion in Pakistan in recent years. It contributed nearly 14 percent of the country’s total power supply in 2024 and about 25 percent of monthly utility electricity in 2025, supported by affordable Chinese technology and favourable sunlight conditions. Initially popular in the agricultural and residential sectors, solar adoption is now gaining traction among industrial players.
Other manufacturers have announced similar initiatives. International Steel has planned a 6.4MW solar project, Dewan Cement a 6MW facility, and Kohinoor Mills is developing 7.2MW of solar capacity.
Industry representatives say the transition is influenced by high power costs, taxation policies, and overall operational pressures. They also acknowledge that the increasing use of off-grid solar systems has slightly reduced power demand from the national grid, indirectly affecting the government’s revenue stream and contributing to the circular debt, which stands at approximately Rs2.6 trillion.
According to official sources, the government plans to raise around Rs1.2 trillion from banks to settle dues with independent power producers, a measure aimed at stabilizing the energy sector’s financial position.
Meanwhile, the export-oriented textile sector continues to face challenges. Gul Ahmed Textile recently announced a pause in apparel exports, attributing the decision to sustained losses, higher input costs, policy adjustments, and regional competition.
Analysts suggest that continued investment in renewable energy could help industries manage operational costs, though broader reforms in energy pricing and governance remain essential for long-term stability.
