KARACHI: Pakistan’s power generation rose 5.1% year-on-year in August to 14,943 gigawatt-hours, the third-highest August level on record, according to Arif Habib Limited Research.
Output was 1.2% lower than July’s 15,122 GWh but above the 14,218 GWh recorded in August 2025. The increase was driven by higher hydropower, coal, gas and wind generation, the research note said.
Imported coal posted the sharpest gain among major sources, more than doubling to 2,330 GWh from 1,138 GWh a year earlier. Its share of total generation rose to 15.6% from 8%.
Local coal generation increased 13% to 1,626 GWh, while gas-based generation rose 27% to 1,311 GWh.
Wind generation surged 63% to 833 GWh from 512 GWh, lifting its share of the mix to 5.6% from 3.6%.
Hydropower remained Pakistan’s largest electricity source, producing 5,654 GWh, up about 2% from 5,517 GWh. It accounted for 37.8% of total generation.
Generation from residual fuel oil rose sharply to 321 GWh from 92 GWh, while solar output increased 8% to 112 GWh.
RLNG-based generation fell 52% to 1,052 GWh from 2,180 GWh, cutting its share of the mix to 7% from 15.3%. AHL attributed the decline to a sharp reduction in LNG imports amid geopolitical disruptions. Of seven long-term cargoes originally scheduled for August, only one was imported by PSO under its long-term contract, the note said.
Nuclear generation declined 29% to 1,528 GWh from 2,145 GWh, reducing its share to 10.2% from 15.1%.
Average unadjusted fuel cost rose 38% to PKR 10.01 per kilowatt-hour from PKR 7.27 a year earlier.
AHL said RLNG and furnace oil together accounted for 42% of the unadjusted fuel cost, contributing PKR 3.23 per kilowatt-hour and PKR 0.97 per kilowatt-hour, respectively, despite representing a much smaller share of total generation.
RLNG fuel cost rose 111% to PKR 45.93 per kilowatt-hour from PKR 21.73, the second-highest level on record, as elevated international oil prices increased the cost of the limited LNG cargo imported during the month. RFO generation cost increased 37% to PKR 45.25 per kilowatt-hour from PKR 33.01, while imported coal fuel cost rose 21% to PKR 17.09 and gas cost increased 6% to PKR 14.22.
Local coal fuel cost fell 54% to PKR 5.50 per kilowatt-hour from PKR 12.01.
AHL said the adjusted fuel cost for August stood at PKR 8.83 per kilowatt-hour, above NEPRA’s reference cost of PKR 7.10. Distribution companies have sought a positive fuel charge adjustment of PKR 1.73 per kilowatt-hour for electricity consumed in August.
AHL attributed the higher fuel charge adjustment to a costlier generation mix, particularly RLNG and furnace oil, while elevated international oil prices added further pressure. The higher generation therefore did not translate into lower average fuel costs, even as strong hydropower and coal output helped offset some of the expensive thermal generation.
