Pakistan’s power generation increased 7 percent year over year to 15,122 GWh in July 2026. Higher output from hydel and coal-based plants drove the increase, according to data compiled by Arif Habib Limited.
July recorded the second-highest power generation for the month. Hydel, local coal and imported coal plants also achieved their highest July output levels on record.
The increase reflects stronger generation from several major power sources. However, higher generation costs could place additional pressure on electricity consumers.
Hydel and Coal Generation Increase
Hydel power generation rose 6 percent year over year to 6,019 GWh in July. It remained the largest contributor to the country’s overall electricity production.
Local coal-based generation also increased 10 percent to 1,650 GWh. Meanwhile, imported coal generation recorded a much sharper rise during the month.
Imported coal-based generation jumped 90 percent year over year. Output increased to 2,169 GWh from 1,140 GWh recorded in July last year.
However, several other power sources recorded declines. RLNG-based generation fell 33 percent to 1,629 GWh.
Gas-based generation also declined 9 percent year over year. It stood at 990 GWh during July.
Hydel Power Leads Generation Mix
Hydel power accounted for 39.8 percent of Pakistan’s total electricity generation in July. Imported coal followed with a 14.3 percent share.
Local coal contributed 10.9 percent, while nuclear power accounted for 10.1 percent. Meanwhile, RLNG represented 10.8 percent of total generation.
Therefore, hydel power continued to play the largest role in the country’s generation mix. At the same time, coal-based generation gained greater importance during the month.
Generation Costs Rise Despite Higher Output
Higher electricity production came with a significant increase in generation costs. The average generation cost rose 38 percent year over year to Rs. 10.75 per kWh in July.
The average cost stood at Rs. 7.78 per kWh during the same month last year. Greater reliance on expensive RLNG and furnace oil contributed to the increase.
Higher oil prices also added pressure to overall generation expenses. As a result, stronger electricity production did not translate into lower generation costs.
RLNG-based generation costs increased 115 percent year over year to Rs. 47.38 per kWh. Furnace oil-based generation costs also rose 61 percent to Rs. 50.08 per kWh.
Meanwhile, imported coal generation cost Rs. 16.33 per kWh. This represented a 13 percent increase compared with the previous year.
Consumers Face Higher Fuel Adjustment Pressure
The increase in generation costs has also affected electricity tariff calculations. Distribution companies requested a positive Fuel Charges Adjustment of Rs. 2.52 per kWh for July 2026.
According to Arif Habib Limited, this represents the highest requested adjustment since June 2024. If the regulator approves the adjustment, electricity consumers could face an additional financial burden.
The latest data therefore presents a mixed picture for Pakistan’s power sector. Generation increased significantly, but rising fuel costs could continue to pressure electricity prices.
The higher reliance on coal and costly imported fuels also highlights the importance of controlling generation expenses. Meanwhile, stronger hydel output could help support the power supply if water availability remains favourable.
