Pakistan’s Power Generation Rises 7% In July As Fuel Cost Jumps 38%.
✧ GENERATE BRIEFING +
Pakistan’s electricity generation increased 7% year on year to reach 15,122 gigawatt-hours (Giga Wh) in July 2026, marking the second-highest monthly output on record according to NEPRA and Arif Habib Limited (AHL) data. The growth was driven by a robust recovery in hydel production (up 6% to 6,019 Giga Wh) and a significant surge in coal-based generation, where imported coal nearly doubled to 2,169 Giga Wh. Despite higher output, the average cost of power generation jumped 38% year on year to Rs10.75 per unit up sharply from Rs 8.99 per unit in June primarily due to a heavier reliance on furnace oil (RFO) and liquefied natural gas (RLNG), including high-cost spot cargo purchases. Consequently, electricity distribution companies (DISCOs) sought a steep positive Fuel Cost Adjustment (FCA) of Rs 2.52 per kilo Wh for July.
Pakistan’s power generation increased 7% year-on-year to 15,122 gigawatt-hours (GWh) in July 2026, marking the second-highest generation level recorded for the month, according to data compiled by the National Electric Power Regulatory Authority (NEPRA) and Arif Habib Limited (AHL) Research.
Power generation also increased 13% month-on-month, compared with 13,431 GWh in June.
Hydropower remained the largest contributor to the country’s electricity generation, producing 6,019 GWh, up 6% year-on-year. Hydel accounted for around 39.8% of the overall generation mix.
Coal-based generation also recorded significant growth. Generation from imported coal nearly doubled to 2,169 GWh, up 90% from 1,140 GWh a year earlier, while local coal generation rose 10% to 1,650 GWh.
Nuclear power generation increased 9% year-on-year to 1,527 GWh, while wind-based generation rose 15% to 682 GWh.
However, RLNG-based power generation declined sharply by 33% to 1,629 GWh, compared with 2,438 GWh in July 2025. Gas-fired generation also fell 9% to 990 GWh.
Despite the increase in overall generation, the average cost of power generation surged 38% year-on-year to Rs10.75 per unit in July, compared with Rs8.99 per unit a year earlier. The cost also increased from Rs8.99 per unit in June.
The rise in generation costs was attributed to a higher reliance on RLNG and furnace oil, including increased use of spot RLNG cargoes, while elevated international oil prices added further pressure.
Generation from furnace oil cost Rs50.08 per unit, up 61% year-on-year, while RLNG-based generation cost rose 115% to Rs47.38 per unit.
The July figures highlight a mixed trend in Pakistan’s power sector, with electricity output improving but generation costs remaining under pressure due to the changing fuel mix and international energy prices.
