Pakistan's power generation edges up in June as demand rises

Pakistan’s electricity generation rose by 2% year-on-year (YoY) in June 2025, reaching 13,744 GWh, according to official data released by the National Electric Power Regulatory Authority (NEPRA). Despite the uptick, generation remained below the monthly reference level set by the government.

For the full fiscal year 2025 (FY25), cumulative power generation stood at 127,160 GWh — nearly flat compared to FY24 — reflecting stagnation in overall energy output over the year.

The marginal rise in June’s generation is attributed to increased demand, supported by lower electricity tariffs and a notable shift from captive (off-grid) industrial generation to the national grid. Analysts say this trend was encouraged by a significant reduction in generation costs and a more favorable fuel mix.

Analysts attribute the modest increase in June’s output to a rise in electricity demand, fueled by lower tariffs and a shift by industries from captive power to the national grid. The incentive to switch was strengthened by a significant reduction in fuel costs and a more favorable pricing environment

Generation Mix – June 2025

A closer look at the generation mix reveals the following:

• Hydropower: 5410 GWh (39.4% of total generation)
• RLNG (Re-gasified Liquefied Natural Gas): 2,216 GWh (16%)
• Coal: 2,907 GWh (22%)
• Nuclear: 1,383 GWh (11%)
• Gas (Natural): 968 GWh (7%)
• Furnace Oil: 151 GWh (1.5%)

Hydropower remained the leading contributor to the energy mix, aided by seasonal water availability, while coal and RLNG-based plants also played a significant role in meeting peak summer demand.

Generation costs fall

The cost of electricity generation in June dropped by 9% YoY to PKR 7.87 per kilowatt-hour (kWh), staying well below the official reference cost. This sharp decline is expected to lead to a negative Fuel Cost Adjustment (FCA) for June, which could offer relief to consumers in their upcoming electricity bills.

Industry experts note that the improved cost structure and increased reliance on cheaper and domestic energy sources (like hydel and nuclear) are signs of growing efficiency in the power sector. However, they caution that stagnant annual growth points to deeper structural issues that must be addressed to meet the country’s expanding energy needs.

With power demand expected to rise further in the coming months, sectoral reforms, enhanced investment in transmission, and diversification of the energy mix will remain key priorities for policymakers.

The data reflects improving efficiency and cost dynamics in Pakistan’s power sector, though overall generation levels continue to hover around previous year’s figures, highlighting the need for broader structural improvements to meet growing energy demands.