Power generation for Apr’25 clocked in at 10,513GWh, marking an increase of 22%YoY/25%MoM. The rise is driven by elevated cooling demand amid rising temperatures and reduced reliance on captive generation by industries.

Coal, Hydel, RLNG, and Nuclear sources were key contributors to the power mix during the month.

Notably, authorities imposed a levy of PkR791/mmbtu on gas-based CPPs during Mar’25, raising gas tariff to PkR4,291/mmbtu. This translates into a significantly higher effective generation cost of ~PkR42/kwh, assuming a thermal efficiency of 35% for off-grid captives utilizing natural gas. The sharp increase in generation costs likely prompted industries to shift towards relatively cheaper grid electricity in the near term in light of recent reductions in grid tariffs, which are estimated at ~PkR28/kWh (excluding taxes and duties).

More positively, the generation cost declined by 5%YoY/8%MoM to PkR8.95/kWh, compared to PkR9.75/kWh in Apr’24, reflecting improved fuel economics. On a cumulative basis, total power generation during 10MFY25 stood at 100,648GWh, broadly unchanged YoY.

Courtesy- AKD Research