Pakistan’s Power Generation Plunges 15% in February

Pakistan witnessed a sharp 15% month-on-month decline in electricity generation during February 2025, with output falling to 6,945 gigawatt-hours (GWh) from January’s 8,153 GWh, according to data released by Arif Habib Limited (AHL). The significant drop suggests a contraction in economic activity across the country. Year-on-year figures also show a 3% decrease compared to the 7,130 GWh recorded in February 2024. The downward trend extends beyond a single month. During the first eight months of the current fiscal year (July-February), cumulative power generation has fallen by 3% year-on-year, reaching 81,739 GWh compared to 84,426 GWh during the same period last year. Economic analysts have expressed growing concern over this persistent decline in electricity consumption, which they attribute to sluggish industrial activity and prohibitively high energy costs. Compounding these challenges is the accelerating shift toward alternative energy sources, particularly solar power, which has gained substantial popularity in both residential and commercial sectors. This transition has created complex challenges for policymakers responsible for managing the national grid and broader energy sector. In a recent policy adjustment, the government reduced the buyback rate for net metering electricity from Rs27 to Rs10 per unit, citing “significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers.” Despite the overall decline in generation, there was some positive news on the cost front. The total expense of generating electricity decreased dramatically by 30%, falling to Rs7.57 per kilowatt-hour (KWh) in February 2025 from Rs10.79 KWh in January. This also represents a 13% year-on-year reduction from the Rs8.70 recorded in February 2024. The generation mix in February saw hydroelectric power emerge as the dominant source, contributing 27.1% of total electricity production. Nuclear power followed closely at 26.6%, while local coal accounted for 15% of the generation share. Renewable energy sources made smaller but notable contributions, with wind, solar, and bagasse accounting for 2.5%, 1.2%, and 1.1% of the generation mix, respectively.