Pakistan’s power demand and generation showed a notable recovery during the first quarter of FY27, reflecting improving economic activity and greater industrial consumption, according to AHL Research.

The research house said power demand in September 2026 rose 5.0% year-on-year to 13,217 GWh, while generation also rose 5.0%, supported by lower tariffs, higher industrial grid consumption, and incentive packages for industrial and agricultural users.

AHL Research noted that generation costs rose 31.8% year-on-year, driven by greater reliance on RLNG, furnace oil, and HSD amid LNG supply disruptions and higher international oil prices. However, stronger hydro and coal-based generation helped offset some of the cost pressures.

The report added that LNG-based generation fell 55.7% year-on-year due to reduced LNG imports, while coal generation surged 56.8%, reaching its highest September level on record. According to AHL Research, the rebound in power demand and generation during 1QFY27 is an encouraging sign for the power sector and broader economic activity.