Power capacity jumps 8.5% to 49,651MW

Solar net metering adds 7,319MW as 13 IPPs of 5,105MW remain closed

The installed capacity of electricity jumped to 49,651 MW, reflecting an 8.5% increase mainly due to the addition of power through solar net metering, according to data from the Economic Survey 2025-26 released on Thursday by the Economic Adviser’s Wing of the Finance Division. unveiled by Finance Minister Senator Muhammad Aurangzeb.

Installed capacity stood at 45,782 MW in the corresponding period of FY 2025. A total of 7,319 MW of capacity from net metering has been added. However. out of 102 commissioned independent power producers (IPPs), 13 IPPs with a combined capacity of 5,105 MW have been closed for various reasons.

As of July-March FY 2025. Pakistan’s total installed electricity generation capacity was 46,605 MW, against 45,888 MW recorded in the corresponding period of FY 2024, registering an increase of 1.6%.

Electricity usage in the agriculture sector dropped significantly by 42.3%. falling from 4,566 GWh to 2,636 GWh, which reduced its share from 5.7% to 3.2%. This sharp decline is likely due to changes in irrigation practices, rainfall patterns,. possibly a switch to diesel-powered or solar alternatives in response to rising electricity costs.

As of July-March FY 2026. Pakistan’s total installed electricity generation capacity stood at 49,651 MW, reflecting an 8.5% increase compared with 45,782 MW recorded in the corresponding period of FY 2025.

The increase can be attributed to the installed capacity of 7,319 MW from net metering. However, out of 102 commissioned IPPs, 13 IPPs with a combined capacity of 5,105 MW have been closed.

These include nine residual fuel oil (RFO)-based IPPs of 2,877 MW, three gas or RLNG-based IPPs of 601 MW,. one multi-fuel-based IPP of 1,638 MW.

The percentage shares of hydel, nuclear, renewable and thermal are 23.4%, 7.1%, 20.3% and 49.2%, respectively. The share of thermal power as the dominant source of electricity supply has declined over the past few years. highlighting increased reliance on indigenous sources.

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Out of the total electricity generation of 92,835 GWh, the share of hydel, nuclear and renewable stands at 53.1%. This shift marks a positive development for the economy, as the energy mix transitions away from thermal generation towards more sustainable. environmentally friendly alternatives, the survey showed.

During July-March FY 2026. total electricity consumption in Pakistan stood at 83,143 GWh, compared with 80,811 GWh in the corresponding period of FY 2025, reflecting a 3.8% increase. The household sector continued to dominate electricity consumption. with its share declining to 47.5% (39,472 GWh) during July-March FY 2026, down from 49.6% (39,730 GWh) in the same period of FY 2025.

This decrease indicates a structural shift to alternative energy sources due to tariff hikes, which have reduced affordability. incentivised conservation. In contrast, industrial consumption increased to 26,205 GWh, up from 21,083 GWh, raising its share from 26.3% to 31.5%.

During July-March FY 2026. total consumption of petroleum products stood at 13.64 million metric tonnes (MMT), a year-on-year increase of 3.5% compared with 13.17 MMT during the same period of FY 2025. The transport sector. which remains the dominant consumer, recorded a 6.7% increase in consumption, rising from 10.55 MMT in July-March FY 2025 to 11.25 MMT (82.5% of total demand) in the same period of FY 2026.

This growth indicates increased mobility, recovery in trade and logistics, and higher fuel demand from road transport and commercial vehicles. In contrast. the industrial sector saw a substantial decline of 42.6%, with consumption dropping from 754,600 metric tonnes to 433,500 metric tonnes (3.2% of total demand). This decline may be attributed to fuel switching towards cheaper alternatives such as natural gas and renewables.

Read More:Pakistan Economic Survey: GDP grows 3.7%, highest in four years

As per the survey. during July-March FY 2026, Pakistan imported a total of 13.88 MMT of petroleum products, up from 12.53 MMT in the same period of FY 2025, a 10.8% increase in quantity. However, the total import bill in value terms increased to $8.9 billion from $8.4 billion in July-March FY 2025. This reflects a combination of higher import volumes and unstable international oil prices.

The import of motor spirit (MS) increased by 2.3% in volume to 4.07 MMT. though the import value declined by 2.4% to $2.96 billion, compared with $3.03 billion in the corresponding period last year. This divergence points to a favourable shift in global prices in the first. second quarters of FY 2026 despite rising demand from the transport sector.

Natural gas is widely recognised as the cleanest-burning fossil fuel. Its indigenous supplies contribute about 29.3% in FY 2026 to the country's total primary energy supply mix.

Pakistan has an extensive gas network of over 13,729 km of transmission, 124,382 km of mains. 30,661 km of service gas pipelines to cater to the requirements of more than 10.9 million consumers across the country.

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The government is pursuing policies to enhance indigenous gas production as well as imported gas to meet the increasing demand for energy. At present, the capacity of two floating storage. regasification units (FSRUs) for regasified liquefied natural gas (RLNG) is 1,200 million cubic feet per day (MMCFD), and RLNG is being imported to mitigate the gas demand-supply shortfall, the survey data showed.

The average natural gas consumption was about 2,929 MMCFD, including 613 MMCFD of RLNG, during July 2025 to March 2026. During this period, the two gas utility companies (SNGPL. SSGCL) laid 729 km of mains and 403 km of service lines and connected 95 villages or towns to the gas network.

They also provided 149,908 additional gas connections across the country, including 148,225 domestic, 1,578 commercial and 105 industrial connections. It is expected that gas will be supplied to approximately 708,245 new consumers during FY 2027.

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