Pakistan’s Power Generation Rises 8% in August, Costs Edge Up 3%

Pakistan generated 14,218 GWh of electricity in August 2025, up a little over 8% year-on-year from 13,180 GWh in August 2024, pointing to firming demand and a modest pickup in economic activity. Output was 1% higher month-on-month versus 14,123 GWh in July. Cumulatively, generation in the first two months of FY26 reached 28,341 GWh, a 1% increase from 28,060 GWh in the same period last year. Analysts attributed the August lift to hotter weather and a meaningful jump in coal-based dispatch, which helped absorb demand. While volumes improved, the average cost of generation nudged up 3% year-on-year to Rs. 7.7/kWh in August (from Rs. 7.5/kWh a year earlier). On a monthly basis, the cost eased 1% from Rs. 7.8/kWh in July. Hydropower led the mix, contributing 38.8% of total generation in August as seasonal inflows strengthened. RLNG followed at 15.3%, narrowly ahead of nuclear at 15.1%. Among renewables, wind and solar supplied 3.6% and 0.7%, respectively, underscoring the still-limited role of variable green sources in the overall stack.