Pakistan power generation grows 7% YoY; fuel cost climbs 38% in July

Business Recorder reported a 7 per cent year-on-year increase in electricity output, with generation reaching 15,112 GWh in July 2026 against 14,123 GWh a year earlier. Compared with the 13,431 GWh produced in June 2026, the month showed a 13 per cent gain. Arif Habib Limited called the level the second-highest for any July, helped by record output from hydropower, local coal and imported coal plants.

AHL attributed output above the NEPRA reference to lower tariffs, industrial users connecting to the national grid, an incremental consumption package aimed at industrial and agricultural users, and stronger economic activity. Generation costs, however, rose 38 per cent year on year to Rs10.75 per KWh in July 2026 from Rs7.78 a year earlier. Against Rs8.99 in June 2026, the cost was 20 per cent higher, while DISCOs requested a positive FCA of Rs2.52 per kWh, the highest since June 2024.

Hydel became the largest source at 39.8 per cent of the July mix, with coal at 25.2 per cent, RLNG at 10.8 per cent, nuclear at 10.1 per cent and gas at 6.5 per cent. RLNG output fell 33 per cent year on year, while its fuel cost rose 115 per cent, and wind and solar made up 4.5 and 0.7 per cent of generation.