Islamabad, June 25, 2025: Power generation in Pakistan rose slightly by 1% year-on-year (YoY) in May 2025, reaching 12,755 gigawatt-hours (GWh), official data revealed. Despite the uptick, generation levels remained below the benchmark set for the month.
Cumulatively, electricity generation during the first 11 months of FY2025 (11MFY25) stood at 113,416 GWh, showing a minimal drop of 0.3% YoY. Experts believe the slight rise in May’s figures is linked to increased demand and a recent cut in electricity tariffs, according to a report by Arif Habib Limited.
Electricity Generation Mix: Coal Surges, Gas Declines
The overall energy mix continues to shift. Locally sourced coal-based power generation increased by 3%, producing 1,413 GWh. In contrast, gas-based generation plunged 20% YoY, while power from RLNG fell by a substantial 21%. Nuclear generation also saw a 15% drop.
Clean energy sources did not perform well either. Wind energy output declined 3% YoY, while solar generation contracted by 7%. Imported coal-based electricity, however, more than doubled—jumping 108% to 796 GWh in May 2025.
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Fuel Cost Trends: Cheaper Power Still Above Benchmark
The average fuel cost of electricity in May 2025 dropped to Rs. 7.77 per kilowatt-hour (kWh), an 11% decline from last year. Yet, this figure remained slightly higher than the reference benchmark for the month. Over the span of 11MFY25, the average fuel cost settled at Rs. 8.67/kWh, down 1% from the same period last year.
The drop in costs reflects favorable changes in the international fuel market and a shift towards more cost-efficient local resources. However, the reduction hasn’t fully translated into cheaper electricity for end consumers.
