The country has witnessed an increase in electricity generation installed capacity during the current financial year 2024-25, which puts an extra burden on consumers.
The capacity payments have been the result of an increase in electricity generation -installed capacity affected 46000 MW. Consumers have paid RS 2.5 to Rs 2.8 trillion each year, which they pay to vacant plants that have not produced a single unit.
According to the Economic Survey 2024-25 released here on Monday, from July-Mart’s FY2025, Pakistan’s total installed electricity generation capacity of 46,605 MW, which reflects an increase of 1.6 percent compared to 45,888 MW registered in the corresponding period of FY2024.
The government said this increase is primarily attributed to the addition of 2,813 MW through net measurement.
However, Pakistan’s government terminated by Pakistan -purchase agreements (PPAs) with several independent power producers (IPPS) – remarkable hub power, Lalpir Power, Pakgen Power, Rousch Power, Saba Power and Atlas Power – Effective October 1, 2024.
The percentage shares of generational capacity after source were: Hydel (24.4%), nuclear (7.8%), persistent (12.2%) and thermal (55.7%).
Although thermal power remains the dominant source, its proportion has fallen in recent years, indicating an increasing dependence on original energy sources.
Out of the total electricity generation of 90,145 GWH, the total proportion of hydel, nuclear and sustained sources of 53.7 percent and highlighted a significant shift against more sustainable and environmentally friendly alternatives.
The energy sector remains a key driver of Pakistan’s economic and industrial development that affects productivity, trade competitiveness and quality of life.
During the first nine months of FY2025 (July – March), Pakistan continued to face challenges in energy affordable prices, sustainability and security.
Nevertheless, signalized key forms, capacity improvements and a changing energy mix gradual progress towards a more elastic and diversified energy landscape.
From March 2025, the total installed electricity generation capacity was 46,605 MW, reflecting a continued shift against cleaner energy sources. Hydel, nuclear and sustained sources collected for 44.3 percent of the installed capacity – an improvement from previous years – while Thermal Power’s share fell to 55.7 percent. With regard to electricity generation, Pakistan produced 90,145 GWH during July – March FY2025, with 53.7 percent generated from Hydel, atomic and lasting sources.
This transition reflects a positive step towards original and environmentally friendly energy sources.
Sector consumption patterns show that the household sector remained the largest consumer who accounts for almost half of the country’s electricity consumption. PPIB continued to play a critical role in enabling participation in the private sector in power production and transmission.
During the review period, important milestones were achieved, including operationalization of the 884 MW Suki Kinari Hydropower project along with continuous progress with new solar, wind and bagass-based projects.
From March 2025, PPIB had facilitated 88 operational IPPs with a cumulative capacity of 20,726 MW. The government’s focus on sustained and original energy is shown in the project tube cord, of which 84 percent include pure energy initiatives.
In the petroleum sector, domestic production remained limited and maintained a high dependence on imports.
However, stable international oil prices helped moderate with the energy port proposal compared to the previous year.
Foreign utilization of refining capacity remained suboptimal, although efforts to attract investments in refinery upgrades and new capacity continued.
On the natural gas front, the depletion of original reserves remains a major problem. Without major discoveries, Pakistan was increasingly dependent 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 the LNG supply chain infrastructure.
Coal continues to play a significant role, especially through the coal -based power projects. The indigenization of coal energy is actively pursued, with several Thar-based plants contributing to the national grid.
Nevertheless, environmental considerations and the need for adoption of pure technology remain important political considerations.
