Key Points
- Canada’s strengths: A world-leading clean electricity grid (dominant hydro and nuclear) and vast energy industry (oil, gas, green tech) make Canada a key exporter of knowledge, technology and capital[1]. Canada’s Indo‑Pacific strategy and pending FIPA emphasize infrastructure and energy as priority sectors.
- Pakistan’s opportunities: Rapid population growth (~250M[2]) drives rising energy needs. After years of shortages, Pakistan has surged into solar leadership (solar’s share went from 4% in 2021 to ~14% in 2024[3], reaching to increase in 2025[4]) while still seeking to expand wind, hydro and gas. About 40 million Pakistanis currently lack reliable electricity[5] – highlighting huge infrastructure and investment demand.
- Collaborative projects: High-level talks have called for Canadian investment in Pakistan’s energy and mining sectors[6]. Both governments are pursuing a Foreign Investment Promotion and Protection Agreement (FIPA) to give Canadian investors legal certainty in Pakistan[7]. Technical partnerships – for example Canada’s Geological Survey cooperation and clean tech trade shows[8] – are already underway.
- Mutual benefits: Canadian firms can gain access to Pakistan’s large market and untapped resources (e.g. renewable sites, exploration opportunities[9]), while Pakistan benefits from Canadian technology (advanced grids, renewable equipment, smart transportation, waste‑water tech[10]) and financing. This boosts jobs and GDP in both countries.
- Win-win outcomes: The partnership addresses climate and development goals together. Canada helps Pakistan avoid coal-intensive expansion by exporting clean energy solutions; Pakistan provides Canada with strategic markets and supply‑chain diversification in the Indo-Pacific. Cooperative infrastructure builds (roads, ports, grids) and joint ventures in energy (solar/wind parks, hydro dams, possibly LNG imports) would strengthen regional stability and shared prosperity.
Energy & Infrastructure Landscapes
Canada’s electricity system is among the cleanest globally, powered predominantly by hydro and nuclear[1]. Canada targets 40–45% GHG cuts by 2030 and net‑zero by 2050, using carbon pricing and grid modernization. Its $2+ trillion economy supports high per-capita power use. Pakistan, by contrast, has rapidly ramped up power capacity but still faces gaps: IEA data note ~40 million people (≈15% of population) without electricity access[5]. Pakistan’s grid is diversifying – hydro remains the largest clean source, while wind and solar are expanding fast. Solar generation tripled to 25% of electricity in early 2025[4], and nuclear and wind are growing. Fossil fuels (gas, coal) still supply ~40% of current power, so Canada’s clean-tech can help Pakistan leapfrog further. Per-capita electricity use in Canada (~17,000 kWh[11]) is ~40× higher than Pakistan’s (~420 kWh[11]), reflecting Canada’s advanced grid and economy. In Pakistan, per-capita use is rising from a low base, underscoring unmet demand. Investments in distribution and rural electrification (many rural Pakistanis already adopt small solar systems) are critical. Pakistan’s geography (mountains, deserts, long coast) offers vast hydro, wind (e.g. the 11,000 MW Gharo-Jhimpir wind corridor[12]) and solar potential. Canadian firms specializing in grid infrastructure, smart cities, LNG (Canada has abundant gas reserves), and sustainable transport can help build this infrastructure.Bilateral Frameworks & Cooperation
Both governments are laying the groundwork for cooperation. Canadian and Pakistani officials have “explored avenues for collaboration in sustainable energy development”[6]. In 2025 the Pakistani Petroleum Minister and Canada’s Trade Counsellor agreed to ongoing dialogue on clean energy, mining and mapping projects. Pakistan has explicitly invited Canadian participation in oil and gas exploration[9]. On the Canada side, foreign policy emphasizes the Indo-Pacific region – including Pakistan – as critical for trade and infrastructure investment. Canada’s strategy identifies infrastructure as a $2.1 trillion opportunity in the region, leveraging Canadian expertise to benefit all parties[13]. A key pillar is investment protection: Canada and Pakistan are negotiating a Foreign Investment Promotion and Protection Agreement (FIPA). This treaty aims to give Canadian investors “greater predictability and certainty” in Pakistan[7], covering legal rights in energy and infrastructure projects. This is attractive to investors wary of risk. Meanwhile, Canadian export-development agencies and multilateral banks (like the IFC) are funding Pakistan projects: for example, IFC is co-financing Pakistan’s wind corridor turbines[14]. Academic and technical exchanges can multiply impact: universities in both countries already collaborate on climate and energy research, and vocational training (e.g. nuclear engineering, solar tech) can build local skills.Toward Mutual Prosperity
For policymakers, the Canada–Pakistan partnership in energy and infrastructure fits both nations’ agendas: Canada gains a stable partner in South Asia and markets for its green technology; Pakistan gains diversified energy sources and economic development. Investors see Pakistan’s liberalizing economy, large consumer market and improving ease-of-doing-business, now bolstered by Canadian trade protections. Academics note the cooperation helps global climate goals – with Pakistan avoiding $ multi-billions in stranded carbon assets by shifting to renewables – and the exchange of best practices. The general public in both countries ultimately benefits through job creation, cleaner air, and stronger economic ties. Maintaining momentum will require follow‑through on initiatives. Regular high-level meetings, industry forums (e.g. Canadian energy expos including Pakistan’s delegation), and joint pilot projects (like solar parks or grid upgrades) can solidify trust. Infrastructure deals – whether for roads, rail (connected to ports like Gwadar), or cross-border electricity trade (e.g. future Pakistan–Central Asia–South Asia grid links) – should be explored. Indeed, by “working collaboratively” on energy transition and climate finance[15], Canada and Pakistan can co-create success stories. In sum, a strategic Energy & Infrastructure partnership taps complementary strengths: Canadian innovation and capital meets Pakistan’s growth needs. This synergy can deliver affordable power, resilient infrastructure and economic dividends for both nations.Conclusion
The Canada–Pakistan energy and infrastructure partnership offers a blueprint for mutually beneficial collaboration. Canada brings clean‑tech know‑how, investment capital and infrastructure experience, while Pakistan offers vast demand, resources and project opportunities. Together they can accelerate Pakistan’s power security and climate goals, and open new markets for Canadian firms. Concrete steps like finalizing the investment treaty, launching joint ventures, and integrating renewable projects will cement this alliance. For policymakers and investors alike, deepening this partnership promises high returns: in jobs, sustainable growth and shared prosperity – an outcome both nations urgently need and can achieve together. * Dr. Muhammad Jahanzaib is the Founder & Chief Visionary Officer (CVO) of Diamanium Thinkers, a global think tank. He holds a PhD in International Relations, specializing in the intersection of politics and economics in Pakistan’s foreign and domestic policy. A double gold medalist and published scholar, he writes on economic intelligence, economic diplomacy, political economy, AI, and regional cooperation in South Asia and beyond. He can be reached at jahanzaibdgc@gmail.com.Key References
[1] Canada – Countries & Regions – IEA https://www.iea.org/countries/canada [2] [3] Pakistan’s solar revolution leaves its middle class behind | Reuters https://www.reuters.com/business/energy/pakistans-solar-revolution-leaves-its-middle-class-behind-2025-04-29/ [4] Pakistan’s solar surge lifts it into rarefied 25% club | Reuters https://www.reuters.com/markets/commodities/pakistans-solar-surge-lifts-it-into-rarefied-25-club-2025-06-17/ [5] Pakistan – Countries & Regions – IEA https://www.iea.org/countries/pakistan [6] [8] [9] Pakistan, Canada discuss bilateral cooperation in clean energy – Daily Times https://dailytimes.com.pk/1297771/pakistan-canada-discuss-bilateral-cooperation-in-clean-energy/ [7] Canada-Pakistan Foreign Investment Promotion and Protection Agreement Negotiations https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/pakistan/fipa-apie/background-contexte.aspx?lang=eng [10] INFRASTRUCTURE – Canada Pakistan Chamber of Commerce https://canadapakistan.org/infrastructure/ [11] Canada vs Pakistan Energy Stats Compared https://www.nationmaster.com/country-info/compare/Canada/Pakistan/Energy [12] [14] In coal-focused Pakistan, a wind power breeze is blowing | Reuters https://www.reuters.com/article/world/in-coal-focused-pakistan-a-wind-power-breeze-is-blowing-idUSKBN1A21B3/ [13] [15] Canada’s Indo-Pacific Strategy https://www.international.gc.ca/transparency-transparence/indo-pacific-indo-pacifique/index.aspx?lang=eng