Power generation in Pakistan clocked in at 13,744 GWh in June 2025, an increase of over 8% MoM compared to the generation recorded in May 2025, suggesting an uptick in economic activity.
Back in May 2025, power generation stood at 12,755 GWh.
Analysts noted that rising temperatures and a significant increase in hydel generation i.e. 12% MoM also helped in demand improvement.
On a yearly basis, power generation surged by 2% as compared to 13,461 GWh in June 2024.
In FY25, power generation remained largely flattish, increasing by 0.1% YoY to 127,159 GWh compared to 127,059 GWh in the SPLY.
“Power generation in Pakistan in FY25 has remained flat on a YoY basis because companies relied largely on their power generation throughout the year amidst expensive grid energy,” said Topline Securities.
“The government introduced off off-grid levy in February 2025 to discourage the use of captives and encourage companies to move to the grid.
“Alongside this, the prime minister also reduced overall unit cost by over Rs5/kwh in Apr, May and Jun 2025 after savings from negotiations with IPPs and relocation of PDL amount to electricity saving.
As a result of this, in 4QFY25, the electricity production was up 7%,“ it noted.
“We expect 5-8% growth in electricity consumption in FY26 due to gradual and continuous transition of captives to the national grid and imposition of PDL on Furnace Oil (FO). Furthermore, gradual economic recovery amidst easing interest rates will also help power generation to post growth,” said Topline.
On the other hand, the total cost of generating electricity in Pakistan was up 1%, clocking in at Rs7.9 KWh in June 2025 compared to Rs7.8 KWh registered in May 2025.
On a yearly basis, the cost was down 9%, compared to Rs8.6 KWh in June 2024.
In June, hydel emerged as the leading source of power generation, accounting for 39% of the generation mix, to become the largest source of electricity generation.
This was followed by RLNG, which accounted for 16% of the overall generation, ahead of coal local, which accounted for 11% of the power generation share.
Among renewables, wind and solar generation amounted to 4% and 1%, respectively, of the generation mix.
