Pakistan’s power generation increased 7 percent year over year to 15,122 GWh in July 2026, driven by higher output from hydel and coal based power plants, according to data compiled by Arif Habib Limited.
July generation was the second highest recorded for the month, with hydel, local coal and imported coal reaching their highest levels for any July, according to the data.
Hydel generation rose 6 percent year over year to 6,019 GWh, while local coal based generation increased 10 percent to 1,650 GWh. Generation from imported coal jumped 90 percent to 2,169 GWh from 1,140 GWh a year earlier.
The increase in coal based generation was accompanied by a decline in generation from some other sources. RLNG based generation fell 33 percent year over year to 1,629 GWh, while gas based generation declined 9 percent to 990 GWh.
The share of hydel in total generation stood at 39.8 percent in July, followed by imported coal at 14.3 percent, nuclear at 10.1 percent and local coal at 10.9 percent. RLNG accounted for 10.8 percent of total generation during the month.
Despite the increase in power output, the average cost of generation rose 38 percent year over year to Rs. 10.75 per kWh in July from Rs. 7.78 per kWh a year earlier. The increase was driven by a higher reliance on relatively expensive RLNG and furnace oil generation, while higher oil prices also added to generation costs.
The data showed that RLNG generation costs rose 115 percent year over year to Rs. 47.38 per kWh, while furnace oil based generation costs increased 61 percent to Rs. 50.08 per kWh. Imported coal generation cost Rs. 16.33 per kWh, up 13 percent from a year earlier.
Against the higher generation costs, distribution companies sought a positive Fuel Charges Adjustment of Rs. 2.52 per kWh for July 2026. According to Arif Habib Limited, the requested adjustment is the highest since June 2024, potentially increasing the cost burden for electricity consumers if approved by the regulator.
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