Pakistan power generation rises 6.3% YoY to 8,939 GWh in March, fuel cost falls

Power generation in Pakistan increased by 6.3% year-on-year and 16.2% month-on-month to 8,939 GWh in March 2026, according to data released by Topline Research on Friday.

The country generated 7,696 GWh in February, reflecting a sequential increase in output.

Fuel cost of power generation declined by 15% year-on-year and 1% month-on-month to Rs8.1 per unit in March, bringing the cost for the first nine months of FY2026 to Rs8.2 per unit, down 5% compared to the same period last year.

Despite the increase in March output, the power sector is facing supply pressures in April, with an electricity shortfall of around 4,500 MW.

According to the Power Division, demand rose to about 18,000 MW during the week, while hydropower generation dropped by nearly 1,991 MW, widening the gap between supply and demand.

The Independent System and Market Operator increased load-shedding hours based on regional demand patterns, with outages extending to around five hours during peak evening periods in several areas.

The federal government has also introduced a daily suspension of electricity supply for around 2.25 hours during peak times across the country, excluding Karachi and Hyderabad, as part of a load management plan.

The Power Division said the measures are aimed at limiting the impact of rising global fuel prices, adding that relief of Rs46 billion has already been provided to consumers.

Global energy markets have remained under pressure following disruptions linked to tensions involving Iran and shipping routes through the Strait of Hormuz, affecting oil and gas supply.