Due to an increase of the monocrystalline PV systems installations, for a drive towards the sustainable smart cities in the hot arid developing country such as Pakistan, pose challenges of the performance and degradation issues. Monocrystalline PV module efficiencies are declining and damaging under the continuous exposure to higher surface day-time temperatures in the different parts of the country. A MATLAB simulations were performed based on the validated mathematical approach. This paper investigates the hot arid surface temperature impacts on the performance of PV modules during the summer and winter seasons in Pakistan. The investigations are performed examining the power generating efficiency of the PV system. This paper also investigates the influence of installations of PV-system in the North, South, East and West regions of Pakistan. It was examined that the northern areas of Pakistan are more suitable for maintaining the long-term durability of the PV system. Investigations are performed for the peak summer and peak winter days. During summer months, cooling strategies have to be implemented to overcome the heating effects whilst reducing degradation effect on installed PV-system.