Preliminary Scoping Study "Pakistan's Clean Energy Transition: The role of Financing Institutions"

Despite its substantial renewable energy potential, Pakistan’s clean energy transition faces significant financing challenges This paper explores the landscape of financing mechanisms available for facilitating the shift towards clean energy, with a focus on current gaps, existing policies, and innovative models. It critically examines domestic and international financial instruments, including public funding, concessional loans, blended finance, and green bonds, while analyzing the role of key stakeholders such as the government, development partners, and the private sector. Drawing upon policy documents, secondary data, and international best practices, the study outlines a way forward to improve energy access, reduce emissions, and attract private investment. Recommendations include streamlining regulatory frameworks, strengthening the role of development finance institutions, expanding risk mitigation tools, and promoting bankable clean energy projects.