Pakistan and Uzbekistan Explore Expanded Energy Cooperation
Pakistan’s Energy Minister highlighted opportunities for electricity inter‑connection, renewable projects and hydropower collaboration with Uzbekistan, signalling potential growth for the country’s power sector.
Share
Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Power sector benefits from potential cross‑border electricity sales and renewable projects – Buy bias.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- PowerPositively affected
Companies
Mentions in This Briefing
Sectors: Power — Positive · Buy bias. PSX tickers: HUBC, KEL, KAPCO. Power sector benefits from potential cross‑border electricity sales and renewable projects – Buy bias.
Full Story
Open on Express Tribune## Background
Pakistan’s Federal Minister for Energy, Mr. Abdul Qadir Khan Leghari, met with his Uzbek counterpart to discuss deepening bilateral ties in the energy domain. The talks focused on three main avenues: cross‑border electricity transmission, joint renewable energy ventures, and the development of hydropower resources.
## Electricity Connectivity
Both governments expressed interest in establishing a transmission line that could enable the export of surplus electricity from Pakistan to Uzbekistan and vice‑versa. Feasibility studies are slated to begin later this year, with an eye on leveraging Pakistan’s growing generation capacity and Uzbekistan’s demand for reliable power.
## Renewable Energy Collaboration
The ministers agreed to explore joint investments in solar and wind projects, capitalising on Uzbekistan’s experience in large‑scale renewable farms and Pakistan’s favourable solar irradiance. Potential financing mechanisms, including multilateral development banks, were discussed to reduce the cost burden on both sides.
## Hydropower Development
Given Uzbekistan’s expertise in hydropower engineering, the two countries plan to cooperate on the design, construction, and operation of new hydroelectric plants in Pakistan’s northern provinces. This could accelerate the commissioning of several pending projects, contributing to the national target of increasing the renewable energy mix.
## Outlook
The cooperation framework is expected to be formalised through a memorandum of understanding (MoU) within the next six months. Successful implementation could enhance Pakistan’s energy security, diversify its generation mix, and open export avenues for surplus power.
## Shariah Consideration
All proposed projects are expected to comply with Islamic finance principles, with potential use of sukuk structures for project financing.