World Bank Recommends Sector-Wise Strategies to Cut Energy Costs and Emissions in Pakistan
The World Bank has outlined targeted strategies to enhance energy efficiency and reduce emissions across five major industrial sectors in Pakistan — cement, steel, fertiliser, textile, and paper & pulp — as part of its newly released report, Pakistan Energy Efficiency: Industrial Energy Efficiency and Decarbonisation (EE&D).
While some industries have begun implementing cleaner technologies, the report notes that adoption remains limited due to policy gaps, financing challenges, and a lack of information and awareness.
Textile Sector
The dyeing and finishing stages are identified as the most energy-intensive processes. The World Bank estimates potential energy savings of 50–60% and emissions reductions of up to 13% through energy conservation, process upgrades, electrification, and circular production models.
Cement Sector
Although several plants have adopted waste heat recovery systems and alternative fuels, the report highlights an opportunity to cut energy use by 6–20% and emissions by 3–35% with broader application of advanced and emerging technologies.
Fertiliser Sector
The sector’s reliance on subsidised natural gas has hindered investment in energy-efficient solutions. The World Bank identifies low fixed gas pricing as a key barrier to progress and recommends policy reforms to encourage energy-saving initiatives.
Steel Sector
Pakistan’s steel industry, which largely operates using electric induction furnaces, is relatively energy-efficient. However, the report suggests a further 5–12% reduction in emissions and 8–10% savings in energy use are possible with modernisation and better energy management.
Paper & Pulp Sector
With a 7.2% annual growth rate over the past five years, the paper and pulp industry has made some strides in efficiency. Still, the report points to significant untapped potential through the adoption of newer technologies and operational improvements.
The World Bank’s recommendations aim to support Pakistan’s efforts to lower industrial energy costs, improve environmental performance, and enhance competitiveness in global markets. The report urges government and industry stakeholders to overcome institutional and financial hurdles to enable sustainable, energy-efficient growth.
