Islamabad, Dec 18: Electricity generation in Pakistan experienced a decline of 3.9 percent year-on-year during the first five months of the current fiscal year (July-Nov FY25), totaling 58,840 GWh (16,024 MW). This downward trend contrasts with a positive uptick in November 2024, when generation increased by 6.4 percent year-on-year, reaching 8,032 GWh (11,156 MW).
The average fuel cost for electricity generation during the 5MFY25 period rose to Rs. 8.30/KWh, reflecting a 4 percent increase compared to Rs. 7.96/KWh during the same period in FY24. For November 2024, the fuel cost increased by 2 percent year-on-year to Rs. 7.29/KWh. However, on a month-on-month basis, it recorded a 20 percent decline, offering some respite amid rising energy costs.
According to Arif Habib Limited (AHL), after accounting for transmission losses and prior year adjustments (PYA), the effective fuel cost for November stood at Rs. 7.23/KWh. This was lower than the reference rate of Rs. 7.86/KWh, resulting in a negative Fuel Cost Adjustment (FCA) of Rs. 0.63/KWh for the month.
The figures highlight ongoing challenges in managing energy costs despite a temporary boost in power generation. Rising fuel costs and efficiency gaps continue to put pressure on Pakistan’s energy sector, necessitating targeted interventions to stabilize production costs and optimize fuel usage.
