Cleantech Factsheet

Written by Mahnoor Abdul Basit

Clean technology, also known as cleantech, refers to products, services, and processes that use renewable materials and energy sources, reduce emissions and waste, and have a minimal impact on the environment. In Pakistan, cleantech is crucial for addressing environmental challenges, enhancing energy security, and fostering sustainable economic growth.

Pakistan’s Energy Landscape[1]

• Pakistan’s energy sector relies heavily on fossil fuels. The country has a total installed power generation capacity of approximately 41,000 MW, with 65% of it coming from fossil fuel sources. (United Nations Development Program)
• The demand for energy is rising by 8-10% annually, driven by population growth and urbanization. Despite a surplus capacity of 12,000 MW, the country is not able to supply grid-based electricity to over 23 percent of the population.
• The country is facing significant energy challenges, including high costs and energy shortages.More than 40 million Pakistanis remain without electricity, and half the population lacks access to clean cooking facilities that use cleaner fuels or modern stoves.
• Pakistan also faces environmental challenges including rising pollution levels, water scarcity, and high energy demands, driven by population growth and industrialisation.

Clean Tech Opportunities

a) Renewable Energy:

Solar, Wind, and Hydropower: Pakistan has immense potential for harnessing renewable energy, with solar and wind energy resources particularly abundant.

b) Sustainable Agriculture:

Pakistan’s agriculture sector is crucial to its economy, but traditional farming practices are resource-intensive and contribute to environmental degradation.

Precision Agriculture: Implementing cleantech solutions like sensors, drones, and AI can optimize water usage, reduce pesticide dependence, and increase yields.

Agro-solar Technologies: Dual-use systems that combine agriculture and solar energy can enable farmers to produce crops and generate electricity simultaneously.

c) Water Management:

Water scarcity is a significant issue in Pakistan, with inefficient water use in agriculture, pollution of freshwater sources, and mismanagement of water infrastructure.

Cleantech Solutions: Smart irrigation systems, water recycling, and desalination technologies can be key to managing water resources sustainably.

Hydrological Monitoring: Using IoT sensors and data analytics to track and manage water distribution in real-time.

d) Waste Management:

With increasing urbanization, waste generation has surged, leading to landfills overflowing and mismanagement of hazardous waste.

Circular Economy Practices: Encouraging recycling, upcycling, and waste-to-energy technologies can reduce landfill dependence and generate additional resources.

Biomass Energy: Using organic waste to generate bioenergy can contribute to both waste reduction and clean energy production.

Benefits of Clean Tech for Pakistan

Economic Growth and Job Creation: Transitioning to cleantech industries, including renewable energy, waste management, and water efficiency, could open new sectors and create jobs.

Environmental Protection: Clean tech can reduce Pakistan’s carbon footprint, slow deforestation, and prevent resource depletion, contributing to global environmental goals.

Resource Efficiency: Cleantech solutions, especially in agriculture and water management, can promote sustainable resource use, preventing future scarcity issues.

Challenges Faced:

Policy and Regulatory Barriers: Lack of streamlined policies, slow regulatory approvals, and inconsistent incentives impede CleanTech adoption.

Financial Constraints: High upfront capital costs, limited access to green financing, and lack of venture capital interest in CleanTech startups hinder growth.

Infrastructure Limitations: Inadequate grid infrastructure for renewable energy integration and outdated distribution systems.

Public Awareness: Limited understanding of CleanTech benefits among businesses and consumers slows the adoption of sustainable technologies.

Skills Gap: Lack of technical expertise in CleanTech innovation and maintenance impairs the sector’s scalability.

Government Initiatives:

Alternate and Renewable Energy Policy 2019: Targets 30% renewable energy by 2030 and offers tax incentives to CleanTech investors.(Government of Pakistan. Alternative and Renewable Energy Policy 2019).[2]

Net Metering Regulation: Allows consumers to sell surplus electricity generated from renewable sources back to the national grid.

Green Financing by State Bank of Pakistan: Offers concessional loans for renewable energy projects through various green financing schemes.

Pakistan Clean Green Initiative: Focuses on promoting sustainable urban development, water conservation, and tree plantation.

Electric Vehicle Policy: Tax exemptions and subsidies encourage local EV manufacturing, with up to 50% exemption from duty and taxes on import of HEVs ( Hybrid Electric Vehicles) . The policy aims to transition 30% of new vehicles to electric power by 2030.[3]

Trends and Opportunities:

The CleanTech sector in Pakistan is witnessing rapid evolution, spurred by advancements in technology and growing public awareness of environmental concerns. One emerging trend within the sector is the increasing focus on urban sustainability initiatives. Cities such as Karachi, Lahore, and Islamabad are adopting CleanTech solutions to address urban pollution, traffic congestion, and waste management issues. Smart cities powered by renewable energy, integrated waste-to-energy solutions, and sustainable infrastructure are becoming focal points for both government and private sector collaboration. For instance, several CleanTech startups are now focusing on creating smart waste management systems that use AI, IoT sensors, and data analytics to optimize waste collection, recycling, and disposal, reducing landfill reliance.

In addition, the agriculture sector in Pakistan is poised for transformation through CleanTech innovations such as vertical farming and aquaponics, which offer resource-efficient solutions to feed a growing population with minimal environmental impact. These technologies, which combine agriculture with aquaculture, not only conserve water but also provide a sustainable alternative to traditional farming. Moreover, the increased availability of affordable solar-powered water pumps is revolutionizing irrigation practices in rural areas, helping farmers reduce dependency on costly and polluting diesel pumps.

As part of Pakistan’s CleanTech future, the country’s burgeoning electric vehicle (EV) market holds significant promise. With government policies promoting EV adoption and manufacturing, Pakistan’s potential as a key player in the electric mobility market is on the rise. By supporting the local production of EVs, Pakistan is positioning itself to capitalize on global trends toward electric transportation while reducing its dependence on fossil fuels. The development of EV infrastructure, including charging stations and battery recycling facilities, will be key to realizing the full potential of this green transition.

The Future of Clean Tech in Pakistan:

Collaborative efforts between government bodies, the private sector, and international organizations are essential to drive the cleantech agenda forward. Innovations such as blockchain in energy distribution, AI in water management, and bio-based technologies in agriculture are likely to shape the next decade of cleantech development in Pakistan.

In Pakistan, emerging technologies like blockchain and artificial intelligence (AI) are increasingly being explored to address the country’s pressing energy and water challenges. Blockchain has the potential to decentralize the energy market by enabling transparent peer-to-peer (P2P) trading of excess electricity generated from solar panels, especially important in urban areas adopting rooftop solar through net metering. It can also streamline billing systems, improve grid accountability, and verify the authenticity of green energy sources, supporting Pakistan’s goal of increasing renewable energy to 30% by 2030. On the other hand, AI is proving to be a powerful tool in improving water management across sectors. In agriculture, which consumes over 90% of the country’s freshwater, AI-driven systems can analyze real-time weather, soil, and crop data to optimize irrigation schedules, significantly reducing water waste. In urban settings, AI can help monitor and detect pipeline leakages, predict consumption trends, and manage distribution systems more efficiently. Projects in provinces like Punjab and Sindh are beginning to integrate these technologies into smart farming and water governance frameworks, showing promising potential for scaling. Together, blockchain and AI represent critical tools in building a more sustainable, data-driven approach to energy and water resource management in Pakistan. Engaging local communities and raising awareness about clean technologies will accelerate adoption at the grassroots level.

Clean tech is no longer an option but a necessity for Pakistan. The country’s environmental challenges, coupled with economic and social opportunities, present a case for urgent and widespread adoption of clean technologies across energy, agriculture, water, and waste management sectors.

Conclusion:

In conclusion, the current scenario of CleanTech in Pakistan is marked by remarkable progress and growing recognition of its critical role in addressing environmental challenges and ensuring sustainable economic growth. As global climate concerns intensify, Pakistan is witnessing a surge in CleanTech initiatives aimed at renewable energy, waste management, water conservation, and carbon reduction. The sector is benefiting from increased investments, both local and international, along with policy incentives provided by the government to encourage green innovation.

The emphasis on public-private partnerships, international collaborations, and research-driven approaches is accelerating Pakistan’s transition toward a greener future. By fostering entrepreneurship and creating an ecosystem conducive to sustainable practices, CleanTech in Pakistan has immense potential to address pressing environmental issues while contributing to economic resilience.

Notable CleanTech Start-ups and Companies:

Reon Energy: Specializes in solar energy solutions for commercial and industrial clients.

Pantera Energy: Provides end-to-end solar power solutions, including residential and industrial projects.

EcoEnergy: Focuses on providing off-grid solar energy solutions to underserved areas.

Baykee Solar: A tech-driven solar platform offering affordable solar financing solutions.

TrashIt: Promotes recycling and composting to encourage sustainable living habits and waste reduction.

EcoPak: Offers biodegradable packaging solutions to replace single-use plastics, aiming to reduce environmental pollution

Breathe IO: Develops IoT-based portable air monitors and purifiers to improve indoor air quality, addressing urban air pollution challenges.

Jaan Pakistan: Focuses on affordable energy solutions for low-income communities, including solar thermal cookers to reduce reliance on solid fuels.

MyWater: Offers eco-friendly water purifiers utilizing advanced filtration technologies to provide sustainable drinking water solutions.

Code Green PK: An eco-friendly eCommerce platform offering reusable and sustainable products to promote zero-waste lifestyles.

SWAP BEV: Focuses on electric vehicle solutions, contributing to the development of sustainable transportation in Pakistan.

Concept Loop: Develops technology-driven solutions aimed at enhancing energy efficiency and reducing environmental impact.

LUMS Center for Entrepreneurship (LCE) has also launched various cleantech startups focusing on sustainable solutions for energy, waste, and water management.

Aabshar: Tackles water scarcity, Aabshar has created an optimizing nozzle that reduces up to 98% of water wastage. The nozzle is easy to attach and also saves electricity consumption by 60%, working to reduce CO2 emissions over time.

PakVitae: Developing affordable water filtration systems for rural areas, addressing Pakistan’s water contamination issues.

Suftech Innovations: Upcycles metallised plastic waste into reusable plastic, promoting a circular economy.

Bamboo Bliss/ HUME: Eco-friendly bamboo products promoting a plastic-free lifestyle.

MetaFashion: Sustainable denim brand blending tradition with eco-friendly practices.

PakVitae: Focused on providing clean drinking water, PakVitae develops affordable, gravity-based water filtration systems using nanotechnology. Their solutions are used in both rural and urban settings to address water contamination and access issues.

Gamma Green Recycle: Incentivizes recycling by offering cash rewards, helping to establish a circular economy for waste in Pakistan.

SE Drop: Focused on combating urban water waste, SE Drop develops natural, plant-based disinfectant and anti-legionella nozzle systems for municipal and industrial pipelines.

Raftar Technologies: Promotes sustainable transport solutions by optimizing urban delivery and minimizing emissions through data-driven routing.

Trash Masti: Pakistan’s first online waste‑management platform, offering door‑to‑door collection for residential and commercial clients, e‑waste and hazardous‑waste disposal, composting, recycling, and even waste‑to‑energy services.

The LUMS Center for Entrepreneurship (LCE) plays a pivotal role in Pakistan’s CleanTech startup ecosystem, nurturing and supporting numerous innovative ventures. Our ongoing efforts include hosting a diverse array of CleanTech startups, fostering collaboration, and forming robust partnerships with environmental organizations, research institutions, and industry leaders to drive sustainable solutions.

For further details on LCE’s initiatives and contributions in the CleanTech domain, or to be added to the list of promising CleanTech startups, please contact our team at lce@lums.edu.pk.

[1] United Nations Development Program (UNDP). Energy Investments: Powering Businesses & Communities. Development Advocate, vol. 11, no. 2 (June-July 2024). https://www.undp.org/sites/g/files/zskgke326/files/2024-07/dap_-_volume_11_issue_2_-_energy_investments_-_powering_business_and_communities.pdf.

[2] Government of Pakistan. Alternative and Renewable Energy Policy 2019. Islamabad: Government of Pakistan, 2019. https://climate-laws.org/document/alternative-and-renewable-energy-policy-2019_991c.

[3] Ministry of Climate Change, Pakistan. Pakistan’s First National Electric Vehicle Policy (2019). Islamabad: Ministry of Climate Change, 2019. https://mocc.gov.pk/SiteImage/Policy/EV%20Policy%20Final.pdf.