Pakistan’s power generation rises in June 2025, but there’s more to the story

In June 2025, Pakistan’s power generation went up by 2% year-on-year (YoY), reaching 13,744 GWh (19,089 MW) compared to 13,459 GWh (18,693 MW) in June 2024. On a month-on-month basis, it also grew by 8%. This rise came mainly due to stronger electricity demand, reduced tariffs, and a shift from factory-level (captive) power use back to the national grid.

FY25 overall generation: flat growth

While June saw a boost, total power generation for the entire FY25 remained flat at 127,160 GWh, nearly the same as 127,165 GWh in FY24.

Energy sources: mixed performance

Here’s a breakdown of how different energy sources performed in June 2025:

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🔹 Imported Coal: Up significantly to 1,397 GWh, which is 142% higher than expected
🔹 Local Coal: Slight growth of 1.4% YoY but still 1.7% below the target
🔹 Gas: Fell by 17% YoY, also 13% below target
🔹 RLNG: Dropped 9.1% YoY, and missed its goal by 12.6%
🔹 Nuclear: Big decline of 31% YoY, under target by 4.2%
🔹 Hydel (Water-based): Jumped 14.4% YoY, but still 7.9% short of the planned target
🔹 Wind: Barely grew (1.2% YoY) and missed target by a large 35.5%
🔹 Solar: Declined 9.8% YoY, 2% below expectations

Power cost: a small win for consumers

The cost of power generation stood at PKR 7.87/KWh in June. But after adjusting for losses and earlier charges, the actual cost is PKR 7.68/KWh, which is lower than the government’s target of PKR 8.33/KWh.

As a result, consumers are expected to get a refund of PKR 0.65/KWh on their August 2025 electricity bill through the fuel charge adjustment.

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Takeaway

Pakistan’s power sector is seeing mild improvement in generation and cost control, but many challenges remain, especially in meeting targets for cleaner sources like wind and solar. Still, lower fuel costs are a welcome relief for consumers, even if only temporary.

Source: Arif Habib Limited

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →