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Modernising household energy use in Pakistan through electrification can lower costs, strengthen energy security and improve system efficiency.
With declining domestic gas supply and rising import dependence, reducing residential gas demand can ease fiscal pressures on the state while improving affordability for consumers through supportive electricity tariffs and targeted financial support.
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Fully electrifying household gas appliances by 2050 could deliver around USD 23.8 billion in fuel import savings relative to the current trajectory and avoid nearly 108 million tonnes of carbon emissions.
It would also address Pakistan’s seasonal energy imbalance, where winter household gas demand rises sharply for space and water heating while electricity demand falls, leaving significant generation capacity underutilised. Shifting demand from gas to electricity would improve overall system alignment and utilisation.
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Widespread adoption of electric cooking and heating requires an integrated institutional architecture that makes grid-connected solutions economically viable.
Distributed solutions are already cost competitive for many households. Scaling quickly requires policy that supports sustainable off-meter deployment while ensuring system-wide efficiency. Aligning regulation, electricity tariff reform and targeted finance can enable system optimisation and lower barriers to household-level distributed energy.
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A phased electrification strategy can convert future demand growth into a planning advantage.
Prioritising electrification of heating systems between now and 2040, and gradually transitioning to full electrification by 2050 would allow sufficient time for grid modernisation to smoothly integrate new household electricity load profiles in parallel with renewables uptake.
Reconfiguring traditional gas appliances in Pakistan's residential sector
From gas-based appliances to clean and efficient electrification pathways
Summary
Pakistan’s residential sector presents a major opportunity to modernise the country’s energy system through electrification. As domestic gas reserves decline and liquefied natural gas (LNG) imports rise, shifting key household end uses, such as cooking, space heating and water heating, from gas to electricity can strategically rebalance the energy mix. At the same time, the power sector operates with substantial underutilised capacity, particularly in winter when electricity demand dips. Redirecting residential energy demand towards electricity offers a practical way to improve system utilisation, enhance energy security and safeguard long-term affordability.
This study, conducted with LUMS Energy Institute (LEI), examines how residential electrification can gradually reduce gas dependence while unlocking efficiency gains across the broader energy system. It finds that full electrification of household gas appliances by 2050 could generate approximately USD 23.8 billion in fuel import savings and avoid nearly 108 million tonnes of cumulative carbon emissions. By better aligning seasonal demand patterns and leveraging existing generation assets, electrification can optimise infrastructure use, lower system costs and support Pakistan’s climate and economic objectives.
The report assesses techno-economic feasibility, grid readiness and macroeconomic impacts, presenting an evidence-based phased roadmap for implementation. Prioritising heating electrification through 2040 and progressing toward full electrification by 2050 would allow time for grid modernisation and renewable energy integration. With coordinated regulatory reform, electricity tariff alignment and targeted financial support, Pakistan can transform future residential demand growth into a strategic advantage – advancing energy efficiency, affordability and sustainable economic development.
