ISLAMABAD: Pakistan’s total installed electricity generation capacity increased by 1.6 percent during the first nine months of the fiscal year 2024–25, reaching 46,605 megawatts (MW), up from 45,888 MW in the corresponding period of the previous year.
According to the Economic Survey 2024-25 released here on Monday, the increase can be attributed to the installed capacity of 2,813 MW from net metering.
It said the energy sector remains a pivotal driver of Pakistan’s economic and industrial development, impacting productivity, trade competitiveness, and overall quality of life.
During the first nine months of FY 2025 (July-March), Pakistan continued to face challenges related to energy affordability, sustainability, and security.
Electricity consumption in Pakistan declined by 3.6 percent during the first nine months of the ongoing fiscal year, reflecting the impact of elevated tariffs, energy conservation measures, and subdued industrial activity.
“As of March 2025, the total installed electricity generation capacity stood at 46,605 MW, with a progressive shift toward cleaner energy sources,” it said.
According to the survey, hydel, nuclear, and renewable sources collectively accounted for 44.3 percent of the installed capacity, up from previous years, while the share of thermal power declined to 55.7 percent.
During the review period, key milestones were achieved, including the operationalization of the 884 MW Suki Kinari Hydropower Project and continued progress on new solar, wind, and bagasse-based projects.
Although thermal power remains the dominant source, its share has declined in recent years, indicating an increasing reliance on indigenous energy sources.
Nonetheless, key reforms, capacity enhancements, and a shifting energy mix signalled gradual progress toward a more resilient and diversified energy landscape.
As of March 2025, the Private Power and Infrastructure Board (PPIB) had successfully facilitated 88 operational Independent Power Producers (IPPs) with a cumulative capacity of 20,726 MW. The government’s push to prioritise renewable and indigenous fuels is evident from the current pipeline of projects, 84 percent of which are based on clean energy.
“In the petroleum sector, domestic production remained constrained, and reliance on imports continued. However, international oil price stability helped moderate the energy import bill compared to the previous year,” the survey said.
It said the government of Pakistan terminated Power Purchase Agreements (PPAs) with several Independent Power Producers (IPPs)—notably HUB Power, Lalpir Power, Pakgen Power, Rousch Power, Saba Power, and Atlas Power—effective October 1, 2024.
On the natural gas front, the depletion of indigenous reserves remains a major concern. With no major discoveries, Pakistan increasingly relied on LNG imports to meet domestic demand, especially in the power and industrial sectors.
In response, initiatives are underway to improve energy efficiency and expand LNG supply chain infrastructure.
Coal continues to play a significant role, especially through Thar coal-based power projects. The indigenisation of coal energy is being actively pursued, with several Thar-based plants contributing to the national grid.
Nonetheless, environmental concerns and the need for clean technology adoption remain key policy considerations.
Nuclear Energy
In Pakistan, six nuclear power plants (NPPs) are operating at two different sites with a total installed capacity of 3,530 MW.
Chashma Nuclear Power Generating Station (CNPGS) near Mianwali comprises four units (Cl, C-2. C- 3 & C-4) with a total capacity of 1330 MW.
Karachi Nuclear Power Station (KNPGS) has a total capacity of 2,200 MW and is located on the Karachi coast. Nuclear energy is a technology-driven source of power generation with a very low share of fuel cost in the total generation cost.
Therefore, the overall generation cost of NPPs remains relatively stable and predictable throughout life.
The survey added the transport sector, which remains the dominant consumer, recorded a 7.99 percent increase in consumption, rising from 9.76 MMT in July-March FY 2024 to 10.54 MMT (80 percent of total demand) in the same period of FY 2025.
“By 2030, the share of electricity generated from hydropower, wind, and solar sources is expected to increase from the current levels of 28 percent, 4 percent, and 1 percent to 39 percent, 10 percent, and 10 percent, respectively,” it said.
This transition will elevate the overall contribution of green energy in the generation mix to around 59 percent.
In support of this shift, the government is prioritising the enhancement of the regulatory framework and offering incentives to attract private sector investment in renewable energy. These efforts aim to bolster energy security and support climate change mitigation.
