or decades, Pakistan treated energy efficiency and conservation as peripheral concerns—desirable, but never urgent. Power shortages, circular debt and rising fuel import bills dominated the debate, while the cheapest “fuel” of all—saved energy—remained largely ignored. Between 2020 and 2025, that mindset began to shift. Slowly at first, and then decisively, the country recognised energy efficiency not as an environmentalist luxury but as an economic and national security imperative. Without effective demand-side management, peak energy demand would continue to rise unchecked, putting additional strain on the system.

The period after 2020 marked the formative years of a new institution. Although the National Energy Efficiency and Conservation Act was passed in 2016, progress prior to 2020 had been slow. Pakistan laid the foundations for operational reform: a dedicated budget was allocated, human resource regulations were formulated and internal staffing for the National Energy Efficiency and Conservation Authority was established. Early interventions, including the UNEP-supported energy-efficient lighting project, helped phase out incandescent bulbs and strengthen market and technical frameworks.

By 2022, structural weaknesses in Pakistan’s energy model were impossible to ignore. Soaring global fuel prices, IMF conditions and a deepening balance-of-payments crisis exposed the unsustainability of energy sector. Energy efficiency finally gained attention—not for climate diplomacy, but because Pakistan could no longer afford inefficiency. The government recognised that expanding generation capacity without curbing demand was futile. Practical reforms were still in their early stages.

The year 2023 marked a decisive turning point. The NEEC Policy 2023 introduced comprehensive reforms: energy efficiency was formally treated as a “first fuel.” National energy-intensity reduction targets were set and a 2023-2030 Action Plan was launched, NEECA’s mandate strengthened, the Energy Conservation Building Code (ECBC-2023) updated and appliance standards and labeling expanded.

By 2022, structural weaknesses in Pakistan’s energy model became impossible to ignore. Soaring global fuel prices, IMF conditions and a deepening balance-of-payments crisis exposed the unsustainability of energy sector.

According to the World Bank RISE Report, Pakistan has been one of the region’s fastest improvers, strengthening legal, institutional and regulatory frameworks, especially after the 2023 NEEC Policy. While energy intensity remains high, these reforms reflect a rapid shift toward structured, measurable and internationally recognised energy efficiency governance.

The uphill task of implementation was initiated. Public buildings began energy audits, provincial adoption of ECBC-2023 was advocated, appliance labeling gained traction and innovative electricity tariff for EV Charging Stations/ Battery Swapping Stations created strong behavioural incentives.

Energy efficiency is not merely about kilowatt-hours saved. It directly affects fuel import dependence, circular debt, fiscal space, industrial competitiveness and emissions reduction without constraining growth. Every unit of energy saved is capacity the country does not need to finance, fuel or subsidise.

Looking ahead, Pakistan’s success depends on embedding energy efficiency across the economy—from industrial modernisation and urban planning to smart grids and digital energy management. Expanding financing for retrofits, unlocking ESCO markets and integrating efficiency with renewables can amplify savings and reduce reliance on imported fuels. Tariff policies that reward efficiency and penalise waste can create strong incentives while curbing costly fuel imports, helping stabilise the power sector and reduce fiscal pressure. Sustained efficiency gains could boost industrial competitiveness, free fiscal space, enhance climate resilience and support a transition to a lower-carbon economy. If implemented effectively, energy efficiency can become a strategic driver of sustainable growth and national prosperity, delivering benefits well beyond the electricity meter.

The writer has served as managing director of the National Energy Efficiency and Conservation Authority and as an energy expert for the Asian Development Bank.