Pakistan’s power generation rose by 12.1 percent year on year to 9,140 GWh in January 2026, with a sharp 7.7 percent increase on a monthly basis, indicating stronger electricity demand and supply recovery.
On a cumulative basis, total power generation reached 76,495 GWh during the first seven months of FY2026, reflecting a 2.3 percent increase compared to the same period last year.
The increase in generation was supported by higher output from RLNG, coal, and nuclear sources, which offset a decline in hydropower generation during the month.
The fuel mix showed a noticeable shift, with reduced reliance on hydel energy and increased dependence on thermal and imported fuel based generation sources. This transition highlights seasonal and structural pressures within Pakistan’s energy mix.
Hydropower generation recorded a significant decline on a monthly basis, which contributed to greater reliance on RLNG and furnace oil based generation, both of which are relatively more expensive sources of electricity.
Power generation costs also rose sharply during the month. Fuel cost increased by 8 percent year on year and 27 percent month on month to $0.04 per unit in January 2026.
The increase in cost was primarily driven by the decline in low cost hydropower generation and higher dependence on costlier fuel sources such as RLNG, nuclear, and furnace oil.
However, on a cumulative basis, the average fuel cost stood at $0.03 per unit during 7MFY2026, reflecting a 5 percent decline compared to the same period last year, indicating some easing in overall cost pressures despite the monthly spike.
