Pakistan power generation grows 5% YoY; fuel cost climbs 38% in August
Power generation in Pakistan reached 14,943 GWh in August 2026, up 5.1% YoY from August 2025. Back in August 2025, power generation stood at 14,218 GWh. “While still below the 16,176 GWh peak recorded in Aug’21, the rebound is encouraging for power-sector activity and broader economic growth,” said Arif Habib Limited (AHL) in a note on Monday. On a monthly basis, power generation declined by 1%…
In August 2026, power generation in Pakistan rose by 5.1% year-over-year to 14,943 GWh, a positive sign for the sector's activity and overall economic growth, according to Arif Habib Limited (AHL). However, power generation dipped by 1% month-over-month, falling to 15,122 GWh in July 2026. The significant increase in power generation was attributed to lower tariffs, increased industrial and agricultural consumption, and enhanced economic activity.
Additionally, the cost of generating electricity in Pakistan surged by 38% in August 2026, reaching Rs10.01 KWh from Rs7.27 KWh a year ago. This rise was primarily due to a higher mix of raw liquid natural gas (RLNG) and furnace oil, alongside increased oil prices. DISCOs (Distribution Companies) requested a Feed-in-Capacity (FCA) of Rs1.73/kWh for August 2026.
Hydropower stood out as the leading source of power generation, contributing 38% to the mix, with hydel generation reaching 5,654 GWh in August 2026, marking the second highest ever. Coal-based generation expanded to 3,956 GWh, up 53% year-over-year, largely driven by a sharp 105% increase in imported coal and a 13% rise in local coal generation. Wind and solar generation accounted for 6% and 1% of the generation mix, respectively.
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