ISLAMABAD – Pakistan’s power generation capacity expanded by 8.5 percent to reach 49,651 megawatts (MW) during the July-March period of fiscal year 2025-26, primarily fueled by the addition of 7,319 MW from net metering installations, according to the Pakistan Economic Survey 2025-26.
Electricity Consumption Trends
The country’s total electricity consumption rose by 3.8 percent to 83,143 gigawatt-hours (GWh) in the first nine months of FY2026, compared to 80,811 GWh in the same period of FY2025. However, the household sector’s share of consumption declined from 49.6 percent to 47.5 percent, as rising tariffs prompted consumers to seek alternative energy sources and adopt conservation measures.
Household electricity usage dropped to 39,472 GWh from 39,730 GWh in the prior year, indicating a structural shift away from grid electricity. In contrast, industrial consumption increased significantly to 26,205 GWh from 21,083 GWh, raising its share from 26.3 percent to 31.5 percent.
Agriculture and Commercial Sectors
Electricity usage in the agriculture sector plummeted by 42.3 percent, falling from 4,566 GWh to 2,636 GWh, reducing its share from 5.7 percent to 3.2 percent. This sharp decline is likely due to changes in irrigation practices, rainfall patterns, and a switch to diesel-powered or solar alternatives in response to higher electricity costs.
The commercial sector recorded a modest increase in consumption, from 6,898 GWh to 7,044 GWh, reflecting a marginal pickup in business and retail activity, particularly in urban centers. The “others” category, including public lighting, bulk supply, and government buildings, consumed 7,785 GWh, slightly decreasing its share from 9.8 percent to 9.4 percent.
Generation Capacity and Sources
As of July-March FY2026, Pakistan’s total installed electricity generation capacity stood at 49,651 MW, an 8.5 percent increase from 45,782 MW in the corresponding period of FY2025. This growth is attributed to net metering capacity additions of 7,319 MW. However, out of 102 commissioned independent power producers (IPPs), 13 IPPs with a combined capacity of 5,105 MW have been closed for various reasons, including 9 residual fuel oil (RFO)-based IPPs (2,877 MW), 3 gas/RLNG-based IPPs (601 MW), and 1 multi-fuel-based IPP (1,638 MW).
The percentage shares of hydel, nuclear, renewable, and thermal generation are 23.4 percent, 7.1 percent, 20.3 percent, and 49.2 percent, respectively. Out of total electricity generation of 92,835 GWh, the combined share of hydel, nuclear, and renewable sources stands at 53.1 percent.
