Pakistan’s power sector is entering a paradox that policymakers have yet to fully confront: electricity demand from the grid is falling, yet the cost of supplying it is rising. While the rapid spread of rooftop solar has begun to hollow out the consumer base of the national grid, the fixed capacity payments and persistent inefficiencies keep total system costs elevated. At first glance, the shift toward solar appears to be a zero-sum outcome: households gain cheaper electricity with solar adoption, while the grid loses its most valuable customers. However, the framing remains incomplete and overlooks deeper structural issues. The conventional…
