ISLAMABAD: Pakistan's installed electricity generation capacity has surged to 49,651 megawatts (MW), marking an 8.5% increase largely attributed to the expansion of solar net metering, according to the Economic Survey 2025-26 released by the Economic Adviser's Wing of the Finance Division. Finance Minister Senator Muhammad Aurangzeb unveiled the survey on Thursday.
Capacity Growth and Net Metering
The installed capacity stood at 45,782 MW in the corresponding period of fiscal year 2025. A total of 7,319 MW from net metering has been added to the national grid. However, out of 102 commissioned independent power producers (IPPs), 13 IPPs with a combined capacity of 5,105 MW have been shut down for various reasons. These include nine residual fuel oil (RFO)-based IPPs of 2,877 MW, three gas or RLNG-based IPPs of 601 MW, and one multi-fuel-based IPP of 1,638 MW.
During July-March FY 2025, Pakistan's total installed electricity generation capacity was 46,605 MW, against 45,888 MW in the same period of FY 2024, showing a 1.6% increase.
Energy Mix and Consumption Patterns
The percentage shares of hydel, nuclear, renewable, and thermal power in the energy mix are 23.4%, 7.1%, 20.3%, and 49.2%, respectively. The share of thermal power has declined over recent years, highlighting increased reliance on indigenous and cleaner energy sources. Out of total electricity generation of 92,835 GWh, the share of hydel, nuclear, and renewable stands at 53.1%.
During July-March FY 2026, total electricity consumption in Pakistan reached 83,143 GWh, up 3.8% from 80,811 GWh in the same period of FY 2025. The household sector's consumption share declined to 47.5% (39,472 GWh) from 49.6% (39,730 GWh), indicating a shift to alternative energy sources due to tariff hikes and conservation efforts. Industrial consumption rose to 26,205 GWh from 21,083 GWh, increasing its share from 26.3% to 31.5%.
Agriculture Sector Electricity Usage
Electricity usage in the agriculture sector dropped significantly by 42.3%, falling from 4,566 GWh to 2,636 GWh, reducing its share from 5.7% to 3.2%. 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 rising electricity costs.
Petroleum Sector
During July-March FY 2026, total consumption of petroleum products stood at 13.64 million metric tonnes (MMT), a 3.5% year-on-year increase from 13.17 MMT in FY 2025. The transport sector recorded a 6.7% increase in consumption, rising from 10.55 MMT to 11.25 MMT (82.5% of total demand), indicating increased mobility and recovery in trade and logistics. In contrast, industrial sector consumption dropped by 42.6% to 433,500 metric tonnes (3.2% of total demand), likely due to fuel switching to cheaper alternatives like natural gas and renewables.
Pakistan imported 13.88 MMT of petroleum products during July-March FY 2026, up 10.8% from 12.53 MMT in FY 2025. The import bill increased to $8.9 billion from $8.4 billion, reflecting higher volumes and unstable international oil prices. Import of motor spirit (MS) rose 2.3% in volume to 4.07 MMT, but its value declined 2.4% to $2.96 billion due to favorable global prices.
Gas Sector
Natural gas contributes about 29.3% to Pakistan's total primary energy supply mix in FY 2026. The country has an extensive gas network of over 13,729 km of transmission, 124,382 km of mains, and 30,661 km of service pipelines, catering to more than 10.9 million consumers. The government is pursuing policies to enhance indigenous gas production and imports to meet rising demand.
Two floating storage and regasification units (FSRUs) for RLNG have a capacity of 1,200 million cubic feet per day (MMCFD). Average natural gas consumption was about 2,929 MMCFD, including 613 MMCFD of RLNG, during July 2025 to March 2026. During this period, gas utility companies laid 729 km of mains and 403 km of service lines, connected 95 villages or towns, and provided 149,908 additional gas connections (148,225 domestic, 1,578 commercial, and 105 industrial). It is expected that gas will be supplied to approximately 708,245 new consumers during FY 2027.
