Pakistan’s power generation rose 5.1% year-on-year to 14,943 gigawatt-hours in August 2026, marking the third-highest generation level recorded for the month of August, according to data compiled by Arif Habib Limited Research.
The increase was driven by higher generation from hydropower, local and imported coal, gas and wind sources, although nuclear and RLNG-based generation declined during the month.
Generation stood at 14,218 GWh in August 2025 and 15,122 GWh in July 2026, meaning August output was 1.2% lower on a month-on-month basis.
Coal and wind generation jump
Imported coal-fired generation more than doubled year-on-year, rising 105% to 2,330 GWh in August from 1,138 GWh a year earlier. Its share in total generation increased to 15.6% from 8%.
Local coal generation rose 13% year-on-year to 1,626 GWh, while gas-based generation increased 27% to 1,311 GWh.
Wind power generation surged 63% to 833 GWh, compared with 512 GWh in August 2025. Wind’s share of total generation increased to 5.6% from 3.6%.
Hydropower remained the largest source of electricity, generating 5,654 GWh in August, up 2% from 5,517 GWh a year earlier. It accounted for 37.8% of total generation.
RLNG and nuclear generation decline
RLNG-based generation fell 52% year-on-year to 1,052 GWh from 2,180 GWh in August 2025. Its share of total generation declined to 7% from 15.3%.
Nuclear generation dropped 29% to 1,528 GWh from 2,145 GWh, reducing its share to 10.2% from 15.1%.
Generation from RFO increased sharply to 321 GWh from 92 GWh a year earlier, while solar generation edged up 8% to 112 GWh.
Generation costs remain elevated
Despite the increase in overall power generation, the cost of generation remained under pressure.
Average fuel cost rose 38% year-on-year to Rs. 10.01 per kilowatt-hour in August from Rs. 7.27/kWh a year earlier, according to the data. The increase was driven by a higher contribution from relatively expensive RLNG and furnace oil, along with elevated international oil prices.
RLNG generation fuel cost rose 111% year-on-year to Rs. 45.93/kWh in August from Rs. 21.73/kWh. RFO costs increased 37% to Rs. 45.25/kWh from Rs. 33.01/kWh.
Imported coal fuel costs increased 21% to Rs. 17.09/kWh, while gas costs rose 6% to Rs. 14.22/kWh.
In contrast, local coal costs fell 54% to Rs. 5.50/kWh from Rs. 12.01/kWh.
Positive FCA sought from DISCOs
The higher generation cost is expected to feed into the monthly fuel charge adjustment mechanism. According to the research note, distribution companies have sought a positive fuel charge adjustment of Rs. 1.73/kWh for electricity consumed in August 2026.
The increase in generation, therefore, has not translated into lower fuel-related costs, as the generation mix continues to include expensive thermal sources alongside lower-cost hydropower and renewable generation.