Investments in Renewable Energy can Generate 300,000 Jobs in Pakistan

 
 
 
investments on renewable energy can generate 3 lacs jobs in Pakistan

Unemployment is a state in which a person is capable of working and eager to work but doesn’t get employment. In Pakistan, the unemployment rate has increased to 6.5 per cent (Pakistan Today, 2021). It means one out of every ten persons is facing unemployment. In urban areas, the employment rate has increased from 2 per cent to 10.1 per cent and from 4.3 per cent to 5 per cent in rural areas.  According to the Special Survey for Evaluating Socioeconomic Report, the impact of COVID-19 has caused the labour market of Pakistan to drop by 13 per cent in the April–June quarter of 2020, leaving 20.7 million people out of work who were mainly low-skilled young workers.

Apart from unemployment, Pakistan is also facing a severe energy crisis due to a sharp increase in demand and faltering supply. The high dependence on fossil fuels for energy generation fails to fulfil the country’s energy demand. The process is quite expensive and adversely affects the environment by contributing to global warming. However, Pakistan focuses on increasing its long-term strategic energy planning by working on green, long-term, and low-cost energy resources. It refers to all renewable energy resources such as sun, wind, hydropower, geothermal energy and biofuels, such as biodiesel, bioethanol, biohydrogen, bio-oil and biogas.

Recently, the World Bank has estimated that Pakistan can generate 300,000 jobs through investment in renewable energy. It includes investments in grid-connected and off-grid renewable energy projects that will create more than 190,000 direct and 137,000 indirect jobs by 2030. In 2020, the renewable energy industry provided about 14,000 direct and over 11,000 indirect jobs through an installed base of 1,995MW of grid-connected wind and solar projects and an estimated 2,600MW of off-grid solar photovoltaic installations.

Generating energy through renewable energy resources has several socio-economic benefits. Constructing dams for energy purposes not only fulfils energy demand but also creates employment opportunities for the locals, protects catchment areas from flood, stores water for irrigation purposes etc. Similarly, using solar energy for power generation provides clean and renewable energy, qualifies for tax breaks and cash incentives, and creates jobs.

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IMARAT Institute of Policy Studies

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