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 June 2026.

“Power generation exceeded the NEPRA reference, in our view, aided by lower tariffs, shift of industrial consumers to the national grid, incremental consumption package for industrial and agricultural consumers and improved economic activity,” said AHL.

On the other hand, the total cost of generating electricity in Pakistan increased by 38% year over year, reaching Rs10.75 KWh in July 2026, up from Rs7.78 KWh in the same period last year.

The high cost of power generation “is driven by a higher RLNG and furnace oil mix, including reliance on spot RLNG cargoes, while elevated oil prices further increased generation costs”.

“Consequently, DISCOs sought a positive FCA of Rs2.52/kWh for Jul’26, the highest since June 2024,” said AHL.

On a monthly basis, the power generation cost was up by 20%, as compared to Rs8.99 KWh in June 2026.

In July, hydel emerged as the leading source of power generation, accounting for 39.8% of the generation mix, becoming the largest source of electricity generation.

This was followed by coal, which accounted for 25.2% of the overall generation, ahead of RLNG, which accounted for 10.8% of the power generation share. Whereas nuclear and gas represented 10.1% and 6.5% of the power generation mix, respectively.

The data revealed that RLNG generation was down by 33% YoY, while its fuel cost was up 115% YoY and 33% MoM.

Among renewables, wind and solar generation amounted to 4.5% and 0.7%, respectively, of the generation mix.