Pakistan’s power generation fell sharply by 15 percent month-on-month in February 2025, reaching 6,945 gigawatt-hours (GWh) compared to 8,153 GWh in January, signaling a slowdown in economic activity. On a year-on-year basis, generation declined by 3 percent from 7,130 GWh recorded in February 2024, according to data released by a brokerage firm.
Over the first eight months of the fiscal year 2024-25 (July-February), total electricity generation dropped by 3% year-on-year to 81,739 GWh, down from 84,426 GWh in the corresponding period last year.
Analysts have raised concerns over the declining power consumption, linking it to sluggish economic activity and high energy costs.
An increasing reliance on alternative energy sources, particularly solar power, is also contributing to the shift. Both residential and commercial consumers are moving towards solar solutions, reducing dependency on the national grid. The trend has prompted policymakers to reassess its impact on the energy sector.
In response to the growing number of solar net-metering consumers and its financial impact on grid users, the government recently slashed the buyback rate for excess solar power from Rs27 per unit to Rs10 per unit.
Despite the decrease in power generation, the overall cost of electricity production saw a significant decline of 30 percent in February, dropping to Rs7.57 per kilowatt-hour (kWh) from Rs10.79 kWh in January. On an annual basis, the cost per unit was 13 percent lower than Rs8.70 recorded in February 2024.
Hydropower remained the leading contributor to electricity generation in February, accounting for 27.1 percent of the energy mix. Nuclear power followed closely, making up 26.6 percent, while locally sourced coal contributed 15 percent. Among renewable sources, wind, solar, and bagasse accounted for 2.5 percent, 1.2 percent, and 1.1 percent of the generation mix, respectively.
