ISLAMABAD – Pakistan’s electricity generation capacity has hit a new high of 46,605 megawatts during the current fiscal year, but the rise is adding financial pressure on consumers due to payments to idle power plants.
According to the Economic Survey 2024–25, the country’s total installed capacity grew by 1.6% compared to the same period last year. The main boost came from an additional 2,813 MW through net metering. However, consumers continue to pay between Rs2.5 to Rs2.8 trillion annually for plants that generate no electricity.
Despite this, the government has taken steps to reduce future liabilities by terminating Power Purchase Agreements (PPAs) with several Independent Power Producers (IPPs), including HUB Power and Lalpir Power. These agreements officially ended on October 1, 2024.
In terms of energy mix, thermal power still dominates at 55.7%, but its share is steadily declining. Meanwhile, hydel, nuclear, and renewable sources make up 44.3% of installed capacity, indicating a slow but clear transition towards cleaner and local energy options.
From July to March FY2025, Pakistan generated 90,145 GWh of electricity, with over 53% coming from sustainable sources. The household sector remained the largest consumer, while several key clean energy projects like the 884 MW Suki Kinari Hydropower Plant became operational during this period.
Although renewable energy is gaining ground, challenges remain. Domestic gas production is falling, forcing greater reliance on LNG imports. Meanwhile, coal from the Thar region continues to play a major role in power generation, despite environmental concerns. The government is now pushing for clean technology and efficiency upgrades across the energy sector.