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By electrifying industrial heat, Pakistan could cut industrial emissions by up to 50 percent by 2050 compared to the current trajectory, while delivering energy savings of around 36 percent.
This would help close the widening gas supply gap, reduce reliance on costly imported liquid natural gas and ease circular debt by replacing inefficient gas use with more cost-effective electric heat. To maximise benefits, electrification should align with growing renewable capacity – especially on-site solar – and improve utilisation of existing generation assets.
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Industrial process heat electrification is economically viable for low- and medium-temperature applications, particularly in food and beverages, textiles, paper and pulp, and fertilisers.
These sectors account for about half of industrial GDP and play a major role in Pakistan’s energy use. Electrification can cut operating costs, improve energy reliability and reduce exposure to volatile gas supply and pricing. As the grid integrates more renewables, especially solar PV, flexible industrial demand can also absorb surplus generation, easing grid congestion.
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Boosting electric heat in industry requires supportive electricity tariffs, financing incentives for appliances and regulatory reforms to modernise power grids.
Industrial electrification must go hand in hand with solar integration, coordinated investment in both technologies and grid upgrades to ensure widespread uptake. Stable policy signals and clear regulations can de‑risk projects, mobilising joint investment in grids, renewables and industry electrification.
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A phased national strategy sequenced by technoeconomic readiness can position industrial electrification at the core of Pakistan’s energy transition and industrial modernisation.
This could begin with textiles and food processing this decade, expand to paper and pulp in the medium term and reach energy-intensive sectors like chemicals, fertilisers and steel by 2050. Coupled with coordinated industrial and energy planning, this approach can boost competitiveness and resilience, safeguarding Pakistan’s export access in carbon-regulated markets.
A roadmap for industrial electrification in Pakistan
Transitioning from gas to grid and renewables
Summary
Pakistan’s industrial sector – one of the country’s largest gas consumers – stands at the core of its economy and energy transition. Process heat across key manufacturing industries remains heavily reliant on fossil gas, even as domestic production declines and reliance on imported liquefied natural gas (LNG) grows. This analysis, conducted with Agora Industry and the Policy Research Institute for Equitable Development (PRIED), provides a data-driven assessment of where industrial electrification is technically feasible, economically viable and system-compatible in Pakistan’s context. By mapping industrial heat demand by temperature level and sector, the analysis identifies practical pathways to transition from gas-based end uses to electric and renewable alternatives in a way that strengthens competitiveness and long-term energy resilience.
The findings show that electrifying industrial heat could cut industrial emissions by up to 50 percent by 2050 compared to the current trajectory, while delivering energy savings of around 36 percent. Low- and medium-temperature applications –particularly in food and beverages, textiles, paper and pulp, and fertilisers – offer the strongest near-term opportunities. Together, these sectors account for roughly half of industrial GDP and represent a major share of energy consumption. Electrification in these industries can lower operating costs, improve energy reliability and reduce exposure to gas supply and price volatility. As Pakistan’s grid integrates more renewable energy, especially on-site and utility-scale solar PV, flexible industrial electricity demand can also absorb surplus generation, improving grid utilisation and easing grid congestion.
To unlock these benefits, the report outlines a sequenced national strategy aligned with techno-economic readiness and sector-specific constraints. Early action in textiles and food processing this decade can build momentum, followed by expansion into paper and pulp in the medium term and energy-intensive sectors such as chemicals, fertilisers and steel by 2050. Supportive electricity tariffs, financing incentives for electric heat technologies, regulatory reform and coordinated grid upgrades will be critical to scaling adoption. By aligning industrial planning with renewable energy deployment and grid modernisation, Pakistan can position industrial electrification at the core of its energy transition – boosting export competitiveness, strengthening resilience and safeguarding market access in increasingly carbon-regulated global trade environments.
