Pakistan, Denmark energy partnership targets grid efficiency

November 30, 2025 (MLN): Denmark is providing a three-year partnership to Pakistani institutions focused on energy planning, data systems, and grid efficiency, officials disclosed during a bilateral meeting in Islamabad.

The partnership comes as Pakistan’s industrial sector rapidly transitions to solar and other renewable energy solutions, according to the press release.

Federal Minister for Commerce Jam Kamal Khan met with Denmark's Ambassador to Pakistan to discuss the energy sector shift that has significantly reduced demand on the national grid.

Both parties identified bringing industries back to the grid or expanding new industrial demand as essential for long-term sustainability.

Pakistan's industrial sector has increasingly adopted solar power installations to manage rising electricity costs, creating what officials described as pressure on grid revenue models.

The shift comes as Pakistan implements taxation measures under its IMF program to meet revenue targets.

Minister acknowledged that temporary tax increases have created business pressures but said the government plans to gradually ease the taxation burden.

He noted that foreign reserves are stabilizing and remittances have shown strong growth, while repatriation issues for foreign businesses have largely been resolved.

Danish companies have expressed interest in Pakistan's agricultural and information technology sectors, though some firms remain cautious due to legal and certification constraints.

The minister highlighted Pakistan's IT sector, which produces approximately 80,000 graduates annually and offers competitive operating costs compared to regional markets.

Pakistan's cosmetics and personal care industry has gained traction in African markets due to competitive pricing and product variety, Khan told the Danish delegation.

He invited Danish firms to participate in upcoming trade exhibitions in Lahore and Karachi.

Both countries committed to strengthening commercial ties through business-to-business engagement and exploring cooperation opportunities in trade, renewable energy, IT, and market expansion.

Travel advisory improvements could enable greater Danish business participation in Pakistan, officials said.

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