Power generation falls 2.5% in June as fuel costs rise 14%

Pakistan’s electricity generation declined 2.5% year-on-year to 13,413 GWh in June 2026, while the average generation cost increased 14% to Rs8.9885 per kWh, according to Central Power Purchasing Agency-Guarantee data.

Generation stood at 13,744 GWh at an average cost of Rs7.8698 per kWh in June 2025.

The decline was partly attributed to disruptions in liquefied natural gas supplies from Qatar, which extended force majeure amid the conflict in the Middle East.

RLNG-based generation fell to 1,480 GWh, accounting for 11.02% of the power mix, from 2,216 GWh a year earlier. Its generation cost surged 62% to Rs35.51 per kWh from Rs21.87 per kWh.

Generation from indigenous gas declined 10.5% to 867 GWh from 968 GWh, with the fuel cost recorded at Rs13.6820 per kWh.

Hydropower remained the largest source, contributing 5,242 GWh, or 39.03% of total generation. Output was 3% lower than the 5,410 GWh generated in June 2025, mainly due to a fault at the Tarbela generation facility.

Nuclear generation, however, increased 31.5% to 1,800 GWh from 1,383 GWh, raising its share in the energy mix to 13.40%.

Electricity generation from local coal fell 10% to 1,358 GWh from 1,510 GWh. Imported coal generation rose 21.6% to 1,699 GWh from 1,397 GWh.

The Independent System and Market Operator also allowed generation from high-speed diesel and residual fuel oil at costs of around Rs57 and Rs52 per kWh, respectively.

In June 2025, the National Power Control Centre generated 151 GWh from residual fuel oil at Rs29 per kWh. The latest rate represents an increase of nearly 80%.

Pakistan imported 47 GWh of electricity from Iran at Rs27.6635 per kWh, compared with the same volume at Rs22.5155 per kWh a year earlier, reflecting a 23% increase in cost.

Among renewable sources, wind generation rose 29.5% to 676 GWh from 522 GWh. Bagasse-based output increased to 46 GWh from 35 GWh, while solar generation edged up to 110 GWh from 106 GWh.

Delivered electricity stood at 13,066 GWh at an average cost of Rs8.9138 per kWh, compared with 13,310 GWh supplied at Rs7.6800 per kWh in June 2025.

CPPA-G has sought a positive fuel cost adjustment of Rs1.20 per kWh for June 2026, compared with Rs0.6541 per kWh in the same month last year.

The National Electric Power Regulatory Authority will hold a public hearing on the request on July 29, 2026.