ISLAMABAD: Pakistan’s electricity consumption has declined by 3.6 per during the first three quarters (July–March) of FY 2024-25 due to variety of reasons, including subdued industrial activity and consumers financial position.
According to the Economic Survey 2024-25, during July-March FY 2025, total electricity consumption in Pakistan stood at 80,111 GWh, compared to 83,109 GWh in the corresponding period of FY 2024, reflecting a 3.6 percent decline in electricity usage. This contraction may be attributed to ongoing energy conservation measures, elevated power tariffs, off-grid solar solutions, and subdued industrial activity.
The survey says that the household sector continued to dominate electricity consumption, with its share rising to 49.6 percent (39,728 GWh) during July-March FY 2025, up from 47.3 percent (39,286 GWh) in the same period of FY 2024. This increase indicates a relative expansion in residential demand, possibly driven by population growth, an increased use of home appliances, and stable weather-related consumption patterns. In contrast, industrial consumption slightly declined both in absolute terms and share.
The sector consumed 21,082 GWh, down from 22,031 GWh, reducing its share from 26.5 percent to 26.3 percent. Electricity usage in the agriculture sector dropped significantly by 34.3 percent, falling from 6,951 GWh to 4,566 GWh, which reduced its share from 8.4 percent to 5.7 percent. This sharp decline is likely due to changes in irrigation practices, rainfall patterns, and possibly a switch to diesel-powered or solar alternatives in response to rising electricity costs.
The commercial sector recorded a modest increase in consumption, from 6,776 GWh to 6,898 GWh, slightly raising its share to 8.6 percent. This rise indicates a marginal pickup in business and retail activity, particularly in urban centers. The “others” category, comprising public lighting, bulk supply, and government buildings, consumed 7,037 GWh, maintaining a stable share at 9.8 percent, broadly consistent with the previous year.
The PPIB is working on multiple fronts, such as diversifying the energy mix, prioritizing indigenous and renewable resources by replacing the imported fuel-based IPPs with indigenous and renewable.
Alongside, PPIB is steadily progressing towards a successful energy transition and promotion of indigenization. This is very much evident from PPIB’s current portfolio, which consists of 19 new multiple fuels/technologies (solar, wind, coal, hydro, RLNG/Gas, baggasse) based IPPs of 6,536 MW combined capacity.
Among these, 16 are renewable energy projects (including hydropower), indicating that 84 percent of the portfolio will be sourced from clean and green energy. This scenario testifies to the GoP steadfast approach for promotion of indigenization and implementation of RE-based power projects in the country.
Further, the GoP has also decided to process future projects based on demand-supply projections as per the Lahore transmission line project has been completed with private sector investment through PPIB. Currently, PPIB is overseeing a fleet of 88 operational IPPs with a cumulative capacity of 20,726 MW totaling $ 28.6 billion combined investment. This capacity, along with KE’s represents 59 percent of national grid’s capacity.
Under this initiative, solar PV-based power generation capacity shall be procured for the substitution of expensive imported fossil fuels used for power generation. Exact quantum will be determined on approval of the IGCEP by Nepra. In this regard, as a first step, a 600 MW peak solar project is planned to be developed at Kot Addu/Muzaffargarh on G2G mode, and the same has been offered to the Government of Kingdom of Saudi Arabia. To ensure a safe, secure, and quality-assured supply of solar and wind energy projects, products, systems, installation, and servicing, PPIB certified 149 new solar PV installers during July-February FY 2025 and reached 689. These certified installers have completed approximately 143,222 solar PV system installations, with a cumulative capacity exceeding 2,113 MW during this period.
In Pakistan, six nuclear power plants (NPPs) are operating at two different sites with a total installed capacity of 3,530 MW. Chashma Nuclear Power Generating Station (CNPGS) near Mianwali comprises four units (Cl, C-2. C3 & C-4) with total capacity of 1330 MW Karachi Nuclear Power Station (KNPGS) has a total capacity of 2,200 MW and is located on Karachi coast. This station contains two units (K-2 & K-3) of the latest technology, termed as generation-III technology. KANUPP, the country’s first nuclear power plant of 137 MW capacity, was permanently shut down in August 2021 after 50 years of operation and is in the decommissioning phase.
Pakistan’s NPPs operate well up to the mark despite the downturn in the annual demand of electricity. The low fuel cost, reliable supply, and technical expertise of PAEC position these NPPs at the forefront in the merit order prepared by NTDC for dispatch. Their combined capacity factor is 80 percent over the period of nine months during the current fiscal year, despite challenges on the demand side. The following table provides generation statistics for each unit.
As of March 2025, the total installed electricity generation capacity reached 46,605 MW. Hydropower, nuclear, and renewable sources collectively constituted 44.4 percent of the installed capacity, an increase from prior years, while the proportion of thermal power declined to 55.7 percent.
Regarding electricity generation, Pakistan produced a total of 90,145 GWh during the specified period, with 53.7 percent derived from hydropower, nuclear, and renewable sources, signifying a positive transition towards indigenous and environmentally sustainable energy solutions. Sectoral consumption patterns reveal the household sector as the predominant consumer, accounting for nearly half of the national electricity usage.
Copyright Business Recorder, 2025
