Key Takeaways
- Electricity generation declined by 2.5% in June 2026 compared to the same month last year.
- The average cost of electricity surged by 14%, reaching Rs8.9885 per kWh.
- Nuclear power generation increased significantly, up by 31.5%.
Pakistan experienced a 2.5 percent decline in its power generation during June 2026 compared to the same month last year, according to data from the Central Power Purchasing Agency-Governance (CPPA-G). This reduction was primarily attributed to disruptions in liquefied natural gas (LNG) supply from Qatar, which extended force majeure due to a war-like situation in the Middle East.
Despite the decrease in overall generation, the cost of electricity saw a significant increase. The average price per kilowatt-hour (kWh) rose by 14 percent to Rs8.9885, up from Rs7.8698 in June 2025. This hike reflects the increased operational costs faced by power generation companies.
Hydel generation, which typically accounts for a substantial portion of Pakistan’s electricity mix, fell by 3 percent to 5,242 gigawatt-hours (GWh) in June 2026 from 5,410 GWh the previous year. The decrease was attributed to a fault at the Tarbela generation facility. Local coal-based generation also saw a decline of 10 percent to 1,358 GWh, while imported coal generation increased by 21.6 percent to 1,699 GWh.
The use of high-speed diesel (HSD) and residual fuel oil (RFO) for electricity generation was also notable. The ISMO allowed HSD at a cost of Rs57 per kWh and RFO at Rs52 per kWh in June 2026, compared to Rs29 per kWh for RFO-based generation in the same month last year, indicating an increase of around 80 percent.
Indigenous gas-based generation dropped by 10.5 percent to 867 GWh at a cost of Rs13.6820 per kWh from 968 GWh at Rs21.87 per kWh in June 2025, marking a 62 percent increase in costs. Similarly, RLNG-based generation fell sharply to 1,480 GWh (11.02 percent share) from 2,216 GWh in the same month last year, with its cost increasing by 62 percent to Rs35.51 per kWh.
Nuclear power generation witnessed a significant increase of 31.5 percent, reaching 1,800 GWh (13.40 percent share) compared to 1,383 GWh in June 2025. Pakistan also imported 47 GWh of electricity from Iran at Rs27.6635 per kWh, up from Rs22.5155 per kWh the previous year, marking a 23 percent increase in price.
Renewable sources showed mixed results. Wind power generation increased by 29.5 percent to 676 GWh from 522 GWh, while bagasse-based generation rose to 46 GWh from 35 GWh. Solar generation saw a marginal rise of 4 percent to 110 GWh from 106 GWh.
Total electricity generation for June 2026 was recorded at 13,413 GWh, down from 13,744 GWh in the same month last year. Delivered energy stood at 13,066 GWh with an average cost of Rs8.9138 per kWh, compared to 13,310 GWh at Rs7.6800 per kWh in June 2025.
The CPPA-G has requested a positive fuel cost adjustment (FCA) of Rs1.20 per kWh for June 2026, up from Rs0.6541 per kWh in the same month last year. The National Electric Power Regulatory Authority (Nepra) is scheduled to hold a public hearing on July 29, 2026, to discuss this adjustment.
