Pakistan’s Power Generation and Production Cost Continue to Increase

Pakistan’s generation of power increased by seven percent in September on a yearly basis while its cost surged by 65 percent due to an elevation in the prices of energy commodities, as reported by a brokerage house.

The country’s exports also grew on a month-on-month basis and climbed by 12.5 percent to reach $2.64 billion last month.

The exports reached $7 billion in the first quarter of the ongoing fiscal year, and are expected to reach almost $31 billion by this year with another export of services worth $6-7 billion.

The output of the Large-Scale Manufacturing Industries had risen by 7.26 percent in July-August 2021-22, in comparison to the same period in 2020-21 as nearly all the main manufacturing sectors recorded growths according to the data that was released by the Pakistan Bureau of Statistics last week.

The report also detailed that the RLNG-based generation cost of generation surged by 120 percent year-over-year to Rs. 14.9/KWh, attributed to a 124 percent year-over-year (YoY) increase in the RLNG prices to Rs. 2,586 per MMBtu.

Additionally, the coal-based cost of generation increased by 67 percent YoY to Rs. 10.1/Kwh during September 2021 because of a 182 percent YoY rise in the prices of coal, and the gas-based cost of generation increased by 23 percent YoY to Rs. 8.3/KWh.

Regarding the industrial output and increased power generation, the Minister for Planning, Development, and Special Initiatives, Asad Umar, tweeted today that this is another sign of the ongoing strong economic recovery.