Pakistan’s power capacity jumps to 49,651MW as net metering drives expansion

ISLAMABAD: Pakistan’s energy sector recorded a broad increase in electricity generation, consumption, petroleum demand, and coal use during FY2025-26, as installed capacity approached 49,651 MW, reflecting a rebound in economic activity and rising energy requirements, according to the Economic Survey.

According to the Pakistan Economic Survey 2025-26, Pakistan’s total installed electricity capacity stood at 49,651 MW by the end of March 2026.

The energy mix remained diversified, with thermal power accounting for 49.2 percent of capacity, followed by hydel at 23.4 percent, renewables at 20.3 percent and nuclear energy at 7.1 percent. 

The survey shows that electricity generation during July-March FY2026 reached 92,835 GWh. Thermal sources remained the largest contributor with a 46.9 percent share, while hydel generation contributed 30.1 percent. Nuclear power accounted for 18.5 percent and renewables contributed 4.5 percent of total generation. 

Electricity consumption during the nine-month period stood at 83,143 GWh, with the residential sector remaining the largest consumer, accounting for 47.4 percent of total power usage.

Industry consumed 31.5 percent, commercial consumers accounted for 8.4 percent, while agriculture used 3.1 percent of total electricity.

The survey highlights the growing role of nuclear energy in Pakistan’s power mix. Six nuclear power plants with a combined capacity of 3,530 MW supplied 17,137 million units of electricity during July-March FY2026, helping reduce dependence on imported fuels and supporting base-load generation.

On the petroleum side, demand for petroleum products increased by 3.5 percent during the period under review, indicating stronger transport and economic activity. The transport sector remained the dominant consumer, accounting for 82.5 percent of total petroleum product demand. 

Pakistan’s petroleum imports also increased, rising to 13.64 million tonnes during July-March FY2026 from 13.17 million tonnes in the corresponding period of the previous fiscal year. The increase reflects the country’s continued reliance on imported petroleum products to meet domestic demand.

The survey points to mixed trends in the natural gas sector.

Natural gas consumption declined to 2,316 MMCFD during July-March FY2026 from 2,345 MMCFD a year earlier, while RLNG consumption fell significantly to 613 MMCFD from 798 MMCFD during the same period last year. 

Coal emerged as one of the fastest-growing energy sources during the year. Coal consumption surged to 21.41 million tonnes during July-March FY2026, compared with 16.17 million tonnes in the corresponding period last year, highlighting the growing contribution of coal-fired generation to Pakistan’s electricity system. 

The Economic Survey notes that Pakistan pursued energy-sector reforms during the year despite global volatility in fuel markets.

The government reported progress in energy-sector restructuring and operationalized a competitive multi-buyer electricity market as part of its broader reform agenda aimed at improving efficiency and sustainability in the power sector. 

The energy sector's performance comes against the backdrop of global uncertainty and volatile energy prices triggered by geopolitical tensions and conflict in the Middle East, which affected energy-importing economies worldwide. 

Despite these challenges, Pakistan maintained energy supplies and continued sectoral reforms while supporting economic recovery.