Power demand rebounds 5.1%, driven by incentives

The Express Tribune reported that electricity demand in Pakistan climbed 5.1% year on year in August 2026, reaching 14,943 megawatts. Cheaper power rates, incentives aimed at industry and a pickup in economic activity were cited as the main drivers.

Demand also stood 1.4% above the usual August level of the past seven years, yet it remained under the 16,176 MW high set in August 2021, according to an AHL analysis. Power generation also topped the level set in the Nepra reference, a development that could help upcoming quarterly tariff adjustments (QTAs).

Fuel expenses are a continuing concern, with adjusted cost at Rs8.83/kWh against a Rs7.10/kWh reference, prompting distribution companies to seek a Rs1.73/kWh fuel cost adjustment. Greater use of RLNG and furnace oil, along with higher global oil prices, pushed costs up. LNG-fired generation fell 51.7% year on year, and Pakistan State Oil brought in just one of seven planned long-term cargoes for August.