Pakistan’s power generation in July 2025 showed a decline of 14% in generation costs year-on-year (YoY), despite a slight increase in overall generation compared to the previous month, according to AKD Securities.
The total generation for the month was 14,123 GWh, which was 5% higher than the same period last year, but 5% lower than June 2025. A breakdown by fuel type showed varied results, with hydel generation rising 6%, while gas and coal generation decreased by 7% and 9%, respectively.
The cost of generation per kilowatt-hour (kWh) was PKR 8.18 in July 2025, a 14% decrease compared to the same month last year (PKR 9.49). On a month-on-month (MoM) basis, generation costs saw a slight rise of 1%.
Notably, RLNG costs dropped by 14% YoY, further contributing to the overall reduction in generation costs.
The detailed breakdown of fuel costs showed that coal, which accounted for 18.7% of total generation, had a cost of PKR 12.70 per kWh, a 9% decrease from last year. FO (furnace oil), however, continued to show volatility, with a decrease of 8% YoY and a 1% increase MoM. RLNG costs stood at PKR 22.03 per kWh, a 14% YoY decline, which aligns with the government’s push towards cheaper energy alternatives.
The nuclear sector faced a downturn with a 29% YoY reduction in its contribution to the overall power generation, though gas and RLNG saw increased demand.
Overall, total generation for the first seven months of 2025 grew by 2% compared to the same period last year, with a notable 35% increase in coal generation.
