Power generation in Pakistan slows down by 6.4% in Sept

Pakistan's power generation fell 6.4% in September, with electricity output reaching 12,487 gigawatt-hours (GWh) compared to 13,339 GWh the same month last year.

This downturn is primarily attributed to the ongoing economic slowdown and skyrocketing power tariffs, which have dampened electricity demand across both residential and industrial sectors.

Overall, power generation declined by 8.1% in the first quarter of fiscal year 2024-25 (FY25), totaling 40,546 GWh compared to 44,137 GWh during the same period last year.

Analysts predict a rebound in power generation later in FY25, but for now, the high tariffs are taking a toll.

The decline in power generation is further exacerbated by the 10% shortfall in actual generation versus the reference generation in September, resulting in higher capacity charges of PKR 5.6 per kilowatt-hour (KWh) for December 2024, January 2025, and February 2025.

Pakistan's broader economic challenges are also reflected in the 2.65% decline in Large Scale Manufacturing Industries production in August this year compared to August 2023. Soaring power tariffs and economic stagnation have created a perfect storm, impacting power generation and overall economic growth.

To revitalize Pakistan's economic growth, it is crucial to address these issues and implement measures to mitigate the impact of high power tariffs and stimulate economic activity.