Pakistan’s Power Generation Sees Slight Uptick in June 2025

In June 2025, Pakistan’s power generation reached 13,744 GWh, showing an increase of more than 8% compared to May 2025. This rise indicates a potential surge in economic activity.

For context, power generation in May 2025 was 12,755 GWh.

Analysts have pointed out that the increased demand was aided by rising temperatures and a substantial 12% month-over-month increase in hydroelectric generation.

Year-over-year, power generation grew by 2% compared to the 13,461 GWh recorded in June 2024.

Throughout FY25, power generation remained nearly unchanged, increasing by 0.1% year-over-year to 127,159 GWh, slightly above the 127,059 GWh in the previous year.

Topline Securities stated that power generation in Pakistan remained stable in FY25 compared to the previous year because numerous businesses depended significantly on their own power generation due to expensive grid energy.

The government implemented an off-grid levy in February 2025 with the goal of reducing captive power usage and motivating businesses to switch to the national grid.

Furthermore, the prime minister lowered the overall unit cost by more than Rs5/kwh in April, May, and June 2025, which was made possible by savings realized from negotiations with Independent Power Producers (IPPs) and the reallocation of PDL funds towards electricity cost reductions.

As a result, electricity production in 4QFY25 increased by 7%, as noted by analysts.

However, the total cost of generating electricity in Pakistan rose by 1%, reaching Rs7.9 per KWh in June 2025, compared to Rs7.8 per KWh in May 2025.

On an annual basis, the cost decreased by 9% compared to Rs8.6 per KWh in June 2024.

Hydel sources led power generation in June, making up 39% of the total, establishing itself as the leading source of electricity.

RLNG followed with 16% of total generation, ahead of local coal, which contributed 11% of the power generation share.

Renewable sources, including wind and solar, accounted for 4% and 1% of the generation mix, respectively.