Pakistan’s Power Generation Rises Slightly in September, Costs Drop Sharply

Pakistan’s power generation in September 2025 rose 1% year-on-year to 12,592 gigawatt-hours (GWh) but declined 11% month-on-month according to Topline Securities citing NEPRA data. The decline is attributed to the fall in hydel and coal-based output due to the seasonal shift. This brings total generation for the first quarter of FY26 to 40,933 GWh, marking a modest 1% annual increase. The country’s average power generation cost fell notably to Rs. 7.1 per unit in September, down 15% from last year and 8% from August. For the quarter, average cost stood at Rs. 7.6 per unit, showing a 9% YoY decline. Hydropower remained the top contributor, generating 4,783 GWh and accounting for 38% of total output. However, hydel generation dropped 13% month-on-month due to lower river flows. Nuclear power posted a strong performance, rising 4% month-on-month and 42% year-on-year to 2,227 GWh, reflecting higher plant availability. RLNG and coal-based generation fell 17% and 14% month-on-month respectively, while wind and solar saw seasonal declines of 33% and 4%. The share of nuclear and hydel in the energy mix rose, while RLNG and imported coal usage declined. Falling fuel costs may bring short-term relief for the industry, though distribution losses and capacity payments still remain a challenge.