Business

Pakistan Is Burning More Coal Than Ever for Electricity

Coal-based electricity generation in Pakistan has reached an all-time high after disruptions in RLNG supplies pushed the country toward greater reliance on imported and local coal for power production.

According to  Central Power Purchasing Agency (CPPA) data compiled by Topline Securities, coal-based power generation accounted for 22 percent of Pakistan’s total electricity generation during the first nine months of FY2026, the highest level on record.

The shift comes after electricity generation from regasified liquefied natural gas declined following disruptions linked to the United States and Iran conflict and the closure of the Strait of Hormuz, a key global energy shipping route.

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With RLNG availability tightening, Pakistan increasingly turned to imported coal plants as the next cheapest available option for electricity generation. Generation from local coal-based projects also increased during the period.

The data shows coal’s share in Pakistan’s power mix steadily rising over recent years, climbing from 9.8 percent in FY2018 to 22 percent in 9MFY2026.

Pakistan’s energy sector has faced pressure from fuel supply disruptions, rising import costs, and circular debt, increasing reliance on coal based power generation. Pakistan has also invested heavily in imported and Thar coal power projects under the China Pakistan Economic Corridor.

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Published by
Muhammad Bilal