Pakistan power generation rises 5.1% in August, fuel cost jumps 38%
Listen2 min
Read aloud by your device’s built-in synthetic voice, not a recording. Needs a browser that can read aloud.
✧ GENERATE BRIEFING
Pakistan’s total electricity generation rose 5.1% year-on-year to reach 14,943 GWh in August 2026, though output declined approximately 1% month-on-month from July's 15,122 GWh, according to research by Arif Habib Limited. Total generation for the first two months of FY2027 hit 30,065 GWh, marking a 6% increase from the previous year. Hydropower remained the primary contributor at 38% share, yielding 5,654 GWh, while coal generation surged 53% year-on-year to an all-time August high of 3,956 GWh. Conversely, RLNG-based generation plummeted 52% to 1,052 GWh due to high international prices and limited supply. Despite strong output, the average cost of power generation jumped 38% to Rs10.01 per kWh, driven by an expensive fuel mix, prompting distribution companies to seek a positive fuel charges adjustment of Rs1.73 per kWh for August consumers.
ISLAMABAD: Pakistan’s electricity generation increased 5.1% year-on-year to 14,943 GWh in August 2026, marking the third-highest generation level recorded for the month, while the average cost of power generation climbed 38% amid a more expensive fuel mix and higher global oil prices.
Power generation, however, declined about 1% month-on-month from 15,122 GWh in July. During the first two months of FY2027, total generation reached 30,065 GWh, up 6% from 28,341 GWh during the same period last year.
According to research by Arif Habib Limited (AHL), hydropower remained the largest contributor in August, accounting for around 38% of total generation. Hydel output reached 5,654 GWh, up 2.5% year-on-year and 17% above the long-term August average of 4,846 GWh.
Coal generation recorded a particularly strong increase, rising 53% YoY to 3,956 GWh, the highest August output on record. Imported-coal generation more than doubled by 105% to 2,330 GWh, while local coal generation increased 13% to 1,626 GWh.
Gas-based generation increased 27% to 1,311 GWh, while wind generation jumped 63% to 833 GWh. In contrast, RLNG-based generation fell sharply by 52% to 1,052 GWh, reflecting reduced RLNG availability and elevated LNG prices. Nuclear generation also declined 29% to 1,528 GWh.
Despite higher electricity output, the average cost of generation increased 38% to Rs10.01 per kWh in August from Rs7.27 per kWh a year earlier. The cost was nevertheless 7% lower than July’s Rs10.75 per kWh.
RLNG remained one of the most expensive generation sources, with its cost rising 111% YoY to Rs45.93 per kWh from Rs21.73. Furnace-oil generation cost increased 37% to Rs45.25 per kWh, while imported coal cost rose 21% to Rs17.09 per kWh. Local coal, however, recorded a 54% decline in generation cost to Rs5.50 per kWh.
The higher generation cost prompted distribution companies to seek a positive fuel charges adjustment (FCA) of Rs1.73 per kWh for August. AHL said generation exceeding the NEPRA reference level was supported by lower tariffs, a shift of industrial consumers to the national grid, incremental consumption packages for industrial and agricultural users and improved economic activity.
