Pakistan power generation rises 5.1% in August as coal, wind output jumps

Pakistan’s power generation rose 5.1% year-on-year to 14,943 gigawatt-hours in August 2026, the third-highest August level on record, as hydropower, coal, gas and wind generation increased, according to Arif Habib Limited Research.

Generation stood at 14,218 GWh in August 2025 and 15,122 GWh in July 2026, leaving August output 1.2% lower month-on-month.

Which sources drove power generation growth in August?

Imported coal recorded the sharpest increase among major sources, with generation more than doubling to 2,330 GWh from 1,138 GWh a year earlier.

Its share of total generation rose to 15.6% from 8%.

Local coal generation increased 13% year-on-year to 1,626 GWh, while gas-based generation rose 27% to 1,311 GWh.

Wind generation surged 63% to 833 GWh from 512 GWh, lifting its share of the generation mix to 5.6% from 3.6%.

Hydropower remained Pakistan’s largest electricity source, producing 5,654 GWh in August, up about 2% from 5,517 GWh a year earlier. It accounted for 37.8% of total generation.

Generation from residual fuel oil rose sharply to 321 GWh from 92 GWh, while solar output increased 8% to 112 GWh.

Why did RLNG and nuclear power generation decline?

RLNG-based generation fell 52% year-on-year to 1,052 GWh from 2,180 GWh in August 2025.

Its share of total generation dropped to 7% from 15.3%.

AHL attributed the decline to a sharp reduction in LNG imports amid geopolitical disruptions. Of seven long-term cargoes originally scheduled for August, only one was imported by PSO under its long-term contract, according to the research note.

Nuclear generation declined 29% to 1,528 GWh from 2,145 GWh, reducing its share of the generation mix to 10.2% from 15.1%.

Why did Pakistan’s power generation cost rise?

Average unadjusted fuel cost rose 38% year-on-year to PKR 10.01 per kilowatt-hour in August from PKR 7.27 a year earlier.

AHL said RLNG and furnace oil together accounted for 42% of the unadjusted fuel cost, contributing PKR 3.23 per kilowatt-hour and PKR 0.97 per kilowatt-hour, respectively, despite representing a much smaller share of total electricity generation.

RLNG fuel cost rose 111% year-on-year to PKR 45.93 per kilowatt-hour from PKR 21.73. AHL said the August level was the second highest on record, as elevated international oil prices increased the cost of the limited LNG cargo imported during the month.

RFO generation cost increased 37% to PKR 45.25 per kilowatt-hour from PKR 33.01, while imported coal fuel cost rose 21% to PKR 17.09 and gas cost increased 6% to PKR 14.22.

Local coal moved in the opposite direction, with its fuel cost falling 54% to PKR 5.50 per kilowatt-hour from PKR 12.01 a year earlier.

How could higher fuel costs affect electricity bills?

AHL said the adjusted fuel cost for August stood at PKR 8.83 per kilowatt-hour, above NEPRA’s reference cost of PKR 7.10.

Consequently, distribution companies have sought a positive fuel charge adjustment of PKR 1.73 per kilowatt-hour for electricity consumed in August.

AHL attributed the higher fuel charge adjustment to a costlier generation mix, particularly RLNG and furnace oil, while elevated international oil prices added further pressure.

The higher generation therefore did not translate into lower average fuel costs, even as strong hydropower and coal output helped offset some of the expensive thermal generation.