Pakistan power generation grows 7% YoY; fuel cost climbs 38% in July
Power generation in Pakistan reached 15,112 GWh in July 2026, up 7% YoY from July 2025. Back in July 2025, power generation stood at 14,123 GWh. The generation is the “second-highest for any July month, amid the highest-ever hydel, local coal and imported coal generation,” said Arif Habib Limited (AHL) in a note on Tuesday. On a monthly basis, power generation improved by 13% from 13,431 GWh in…
In July 2026, power generation in Pakistan rose by 7% compared to the previous year, reaching a total of 15,112 GWh. This figure represents the second-highest monthly generation on record, driven primarily by hydropower, coal, and imported coal. Arif Habib Limited noted that the generation mix was dominated by these sources, with hydel power accounting for 39.8% of the total, coal at 25.2%, and RLNG contributing 10.8%.
The cost of generating electricity surged by 38% year over year, reaching Rs10.75 per kWh in July 2026, up from Rs7.78 per kWh in July 2025. This sharp increase was attributed to a higher reliance on liquefied natural gas (RLNG) and furnace oil, compounded by rising oil prices. DISCOs (Distribution Companies) requested a significant Feed Cost Adjustment (FCA) of Rs2.52 per kWh for July 2026, the highest since June 2024.
Notably, hydel power remained the leading source of generation, while RLNG generation declined by 33% compared to the same period in 2025, and its fuel costs soared by 115% YoY and 33% month-over-month. Wind and solar contributed 4.5% and 0.7% respectively to the generation mix.
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