View source for Electricity sector in Pakistan

{{Short description|Overview of the electric sector of Pakistan}}{{Expand section|date=June 2025}}
{{Use Pakistani English|date=November 2022}}
{{Use dmy dates|date=November 2022}}
{{Electricity generation in Pakistan}}

Electricity in [[Pakistan]] is [[electricity generation|generated]], [[electric power transmission|transmitted]] and distributed by two vertically integrated [[public sector]] companies, first one being [[Water and Power Development Authority]] ([[WAPDA]]) responsible for the production of [[hydroelectricity]] and its supply to the consumers by [[Electricity distribution companies of Pakistan|electricity distribution companies]] (DISCOS) under the [[Pakistan Electric Power Company|Pakistan Electric Power Company (PEPCO)]] being the other integrated company. Currently, there are 12 [[List of electricity distribution companies of Pakistan|distribution companies]] and a [[National Transmission & Despatch Company|National Transmission And Dispatch Company]] (NTDC) which are all in the public sector except [[Karachi Electric]] in the city of [[Karachi]] and its surrounding areas. There were around 36 independent power producers (IPPs) that contribute significantly to the electricity generation in Pakistan. As of 2025, the Government of Pakistan is focusing to re-structure the agreement with IPPs and facilitate the end users.<ref>{{Cite web |date=2024-12-14 |title=Govt to terminate power agreements with six more IPPs |url=https://profit.pakistantoday.com.pk/2024/12/14/govt-to-terminate-power-agreements-with-six-more-ipps/ |access-date=2025-06-01 |website=Profit by Pakistan Today |language=en-US}}</ref><ref>{{Cite web |last=Kiani |first=Khaleeq |date=2024-10-11 |title=Govt ends contracts with five IPPs to save Rs411bn |url=https://www.dawn.com/news/1864412 |access-date=2025-06-01 |website=DAWN.COM |language=en}}</ref>

As of 2022, 95% of Pakistan's population had access to electricity. <ref>{{Cite web|title=Electricity access|url=https://ourworldindata.org/grapher/share-of-the-population-with-access-to-electricity|access-date=2 November 2020|website=Our World in Data}}</ref> Pakistan aims to generate 60% of its electricity from renewable sources, and has set targets for reduction in [[greenhouse gas emissions]].<ref>{{Cite web |date=2024-01-12 |title=Pakistan - Renewable Energy |url=https://www.trade.gov/country-commercial-guides/pakistan-renewable-energy |access-date=2025-06-01 |website=www.trade.gov |language=en}}</ref> It is already facing a 'solar boom', adding an estimated 17 GW worth of clean solar energy to the grid in 2024 alone, partly due to availability of cheap Chinese solar panels and tax exemptions from the government.<ref>{{Cite web |last=Tahir |first=Nabil |date=2025-04-20 |title=Shining a light on Pakistan's solar boom {{!}} The Express Tribune |url=https://tribune.com.pk/story/2541061/shining-a-light-on-pakistans-solar-boom |access-date=2025-06-01 |website=tribune.com.pk |language=en}}</ref><ref>{{Cite web |title=Pakistan's surprise solar surge shocks experts and grid – DW – 11/27/2024 |url=https://www.dw.com/en/pakistan-solar-power-renewable-energy-power-grid-v2/a-70885544 |access-date=2025-06-01 |website=dw.com |language=en}}</ref>

Following 2022 dearth of imported LNG in Pakistan, the country indicated it would quadruple its coal power plants, which use [[Coal mining in Pakistan|domestic coal]].<ref>{{cite news | url=https://www.reuters.com/business/energy/pakistan-plans-quadruple-domestic-coal-fired-power-move-away-gas-2023-02-13/ | title=Exclusive: Pakistan plans to quadruple domestic coal-fired power, move away from gas | newspaper=Reuters | date=14 February 2023 | last1=Peshimam | first1=Gibran Naiyyar }}</ref> Electricity generation capacity from coal has seen significant growth in recent years, owing to its utilization of cheap domestic coal to meet the country's rising electricity demands.<ref>{{Cite web |last=HAQ |first=SHAHRAM |date=2025-04-24 |title=Coal share in power sector grows |url=https://tribune.com.pk/story/2541893/coal-share-in-power-sector-grows |access-date=2025-06-01 |website=The Express Tribune |language=en}}</ref> The frequent increases in electricity, natural gas, petrol, and diesel prices are substantial contributors, driving inflation and consequently decreasing industrial production. <ref>{{Cite web |last=Aazim |first=Mohiuddin |date=2023-08-28 |title=The hopeless downward spiral |url=https://www.dawn.com/news/1772662 |access-date=2023-08-28 |website=DAWN.COM |language=en}}</ref>

== History ==
Pakistan's electricity sector is a developing market. For years, the matter of balancing the country's supply against the demand for electricity had remained a largely unresolved matter. The country faced significant challenges in revamping its network responsible for the supply of electricity. Electricity generators were seeking a parity in returns for both domestic and foreign investors indicating it to be one of the key issues in overseeing a surge in electricity generation when the country was facing growing shortages. Other problems included lack of efficiency, rising demands for energy, and political instability.<ref>{{cite web| url = http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/16-loadshedding-to-end-by-next-summer-us-hs-06| url-status = dead| archive-url = https://web.archive.org/web/20091108104230/http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/16-loadshedding-to-end-by-next-summer-us-hs-06| archive-date = 8 November 2009| title = DAWN.COM {{!}} Pakistan {{!}} Loadshedding to end by next summer: US}} </ref> Provincial and federal agencies, who are the largest consumers, often do not pay their bills.<ref>[https://www.economist.com/blogs/banyan/2012/05/pakistan%E2%80%99s-energy-crisis Power Politics:Pakistan's energy crisis] The Economist, 21 May 2012</ref> At one point electricity generation had shrunk by up to 50% due to an over-reliance on fossil fuels.<ref name="thenews.com.pk">{{cite web|url=http://www.thenews.com.pk/updates.asp?id=90379|title=The News International: Latest News Breaking, Pakistan News|website=The News International|access-date=6 April 2018}}</ref> The country was hit by its worst power crisis in 2007 when production fell by 6000 MW and massive blackouts followed suit.<ref name="etribune">{{cite web|url=http://www.energytribune.com/articles.cfm?aid=864 |title=Pakistan's Ongoing Electricity Shortage |work=Energy Tribune |access-date=19 October 2011}}</ref> [[Rolling blackout|Load shedding]] and power blackouts had become severe in Pakistan before 2016.<ref>{{cite web|url=http://pakistaniat.com/2008/01/03/more-crises-in-pakistan-electricity-flour-sugar-water-sui-gas-crises-what-is-the-way-out/ |title=More Crises in Pakistan: Electricity, Flour, Sugar, Water, Sui Gas Crises – What is the way out? : ALL THINGS PAKISTAN |date=4 January 2008 |publisher=Pakistaniat.com |access-date=19 October 2011}}</ref> Economic Survey of 2020-21 indicated that Pakistan's installed capacity to generate electricity had surged up to 37,261 MW by July 2020, which stood at 22,812 MW in June 2013, showing the growth of 64% over 7 years.<ref>{{cite web| url = https://www.finance.gov.pk/survey/chapters_21/14-Energy.pdf | title = Country's installed electricity capacity increases by 30pc to 29,573MW}}</ref>

== Installed capacity ==
According to the Pakistan Economic Survey 2024–25, the installed electricity generation capacity reached 46,605 MW in March 2025, reflecting an increase of 1.6% from previous year.<ref name=":0">{{Cite web |title=Chapter 14: Energy {{!}} Pakistan Economic Survey 2024-25 {{!}} Ministry of Finance |url=https://finance.gov.pk/survey/chapter_25/14_Energy.pdf}}</ref> The electricity transmission network, currently, has the capacity to handle more than 53,000 MVA.<ref>{{Cite news |last=Ghumman |first=Mushtaq |date=12 June 2024 |title=Installed electricity capacity stands at 42,131MW |url=https://www.brecorder.com/news/40308041 |access-date=9 September 2024 |work=Business Recorder}}</ref> In FY 2024, Pakistan generated 127,523 GWh of electricity, of which 54.26% was generated from hydel, nuclear or renewable energy sources. More than 50% of the electricity was generated from [[Hydroelectricity|hydropower]], renewable or nuclear power plants. Although fossil fuels represent 55.6% of installed capacity, they are underutilized and actually only responsible for 46.3% of electricity generated.<ref name=":0" />

{{Pie chart
| radius = 125
| caption = Installed capacity by source in MW, March 2025:<ref>{{Cite web |url=https://finance.gov.pk/survey/chapter_25/14_Energy.pdf |title=Pakistan Economic Survey 2024-25 |last= |first= |date= |website=finance.gov.pk}}</ref>
| label1 = Fossil fuels
| value1 = 25937
| color1 = #1f77b4
| label2 = [[List of hydroelectric power stations in Pakistan|Hydroelectric]]:
| value2 = 11368
| color2 = #d62728
| label3 = [[Nuclear energy in Pakistan|Nuclear]]:
| value3 = 3620
| label4 = Renewable
| value4 = 5680
}}

Pakistan’s power sector continues to face significant challenges, with underutilization of generation capacity remaining a core issue despite recent renegotiations of independent power producers’ (IPPs) power purchase agreements. In recent years, Pakistan has added more than 2,813 MW of capacity to the grid owing to domestic solar [[net metering]]. 
{| class="wikitable"
|+Installed capacity & Electricity Generation as of FY2024-25<ref name=":0" />
! rowspan="2" |Source      
! colspan="2" |Installed Capacity (March 2025)   
! colspan="2" |Electricity Generation (FY 2024)  
|-
|MW
|Share (%)
|GWh
|Share (%)
|-
|Fossils
|25,937
|55.65
|58,333
|45.74
|-
|[[List of hydroelectric power stations in Pakistan|Hydro]]
|11,368
|24.39
|39,902
|31.29
|-
|[[Nuclear power in Pakistan|Nuclear]]
|3,620
|7.77
|23,155
|18.16
|-
|Renewable
|5,680
|12.18
|6,133
|4.81
|-
|'''Total'''
|46,605
|
|'''127,523'''
|
|}

== Electricity consumption ==
The country’s overall power consumption declined by 3.6% in FY 2024-25, attributed to increased power tariffs, off-grid solar solutions and decreased industrial activity. with total consumption standing at 86% of power generated.<ref>{{Cite web |last=Ahmadani |first=Ahmad |date=2025-06-09 |title=Power demand shrinks 3.6% in FY25 due to tariff hike, weak industry |url=https://profit.pakistantoday.com.pk/2025/06/09/power-demand-shrinks-3-6-in-fy25-due-to-tariff-hike-weak-industry/ |access-date=2025-06-09 |website=Profit by Pakistan Today |language=en-US}}</ref> During FY2024, total electricity consumption stood at 111,110 GWh,<ref name=":0" /> of which sector-wise share is as follows:
{| class="wikitable"
|+Electricity Consumption in FY2024
!Source
!GWh
!Share (%)
!Change from FY2023 (GWh)
|-
|Household
|54,911
|49.4
|1,388
|-
|Industry
|27,830
|25.0
|(3,258)
|-
|Commercial
|9,195
|8.3
|303
|-
|Agriculture
|8,578
|7.7
|(1,062)
|-
|Others
|10,596
|9.5
|847
|-
|'''Total:'''
|111,110
|
|(1,782)
|}

== Governance and sector reform ==
Recent reforms include the unbundling and corporatization of the Water and Power Development Authority (WAPDA) into 10 regional distribution companies, 4 government-owned thermal power generation companies and a transmission company, the [[National Transmission & Despatch Company|National Transmission and Despatch Company]]. The hydropower plants were retained by WAPDA as WAPDA Hydroelectric. All are fully owned by the government. K-Electric Limited (formally known as Karachi Electric Supply Company), which is responsible for power generation and distribution in the Karachi area, is listed on the stock exchanges and is privately owned. Privately owned independent power producers generated 53% of the country's power in FY2016.<ref>Asian Development Bank (2016), Access to Clean Energy Investment Program, Energy Sector Summary, p.2</ref>

In 2019, Alternative and Renewable Energy policy was introduced to promote renewable energy in the country and reduce carbon footprint and greenhouse gas emissions. The policy aims to increase share of green energy to 20% by 2025 and 30% by 2030. As of FY2024, only 6.25% of installed capacity of electricity in Pakistan is from renewables.

== Effects of natural and man-made disasters ==
During [[2010 Pakistan floods]] and [[2005 Kashmir earthquake]] power stations, power distribution and transmission and other energy infrastructures were damaged. During the floods and rainfalls the recently constructed Jinnah hydroelectric power plant was flooded in addition to severe damages to transmission and distribution network and installations while several power plants and refineries were threatened by rising waters and had to be shut down. Natural gas field output had to be reduced as the flood waters approached the wells. There has also been some concern by Pakistani nuclear activists over the effect of natural disasters on nuclear plants specially over the [[Chashma Nuclear Power Plant]], since the plant lies over a geological fault.<ref>{{cite web|url=http://www.atimes.com/ind-pak/AL23Df01.html |archive-url=https://web.archive.org/web/20000925142048/http://atimes.com/ind-pak/AL23Df01.html |url-status=unfit |archive-date=25 September 2000 |title=Asia Times: Pakistan's nuclear program built on shifting sands |work=Asia Times |date=23 December 1999 |access-date=19 October 2011}}</ref> Due to over reliance of Pakistan on dams for electricity generation,<ref name="thenews.com.pk"/> [[Environmental impacts of reservoirs|some environmental impacts of dams]] such as submergence of usable/ecological land and their negative impact on Pakistan's [[Mangrove|mangrove forests]] due to loss of river silt load, as well as increased risk of severe floods have become evident.<ref>{{Cite report |url=http://www.adb.org/water/topics/dams/pdf/cspkmain.pdf |title=Tarbela Dam and related aspects of the Indus River Basin Pakistan |date=November 2000 |publisher=World Commission on Dams |access-date=12 November 2022 |archive-url=https://web.archive.org/web/20100705052623/http://www.adb.org/water/topics/dams/pdf/cspkmain.pdf |archive-date=5 July 2010}}</ref><ref>{{cite web |url=http://www.merip.org/mero/mero081710.html |title=Disaster Strikes the Indus River Valley |publisher=Middle East Research and Information Project |date=17 August 2010 |access-date=19 October 2011 |archive-url=https://web.archive.org/web/20100821103327/http://www.merip.org/mero/mero081710.html |archive-date=21 August 2010 |url-status=dead }}</ref><ref>{{cite web |url=http://mwcnews.net/focus/editorial/4511-pakistan-independence-day.html |title=US bombs flood-devastated Pakistan |publisher=Mwcnews.net |date=14 August 2010 |access-date=19 October 2011 |archive-date=5 January 2023 |archive-url=https://web.archive.org/web/20230105174758/http://mwcnews.net/focus/editorial/4511-pakistan-independence-day.html |url-status=dead }}</ref>
== See also ==
* [[List of power stations in Pakistan]]
* [[List of electricity distribution companies of Pakistan]]
* [[Water & Power Development Authority]]
* [[Economy of Pakistan]]
* [[Pakistan Electric Power Company]]
* [[Alternative Energy Development Board]]
* [[National Electric Power Regulatory Authority]]
* [[Karachi Electric Supply Company]]
* [[Pakistan national energy policy]]
* [[Private Power and Infrastructure Board|Private Power and Infrastructure Board (PPIB)]]

== References ==
{{reflist|30em}}

== Further reading ==
* Robert M. Hathaway, editor, and Michael Kugelman, editor, ''Powering Pakistan'', Oxford University Press, USA (15 January 2010), hardcover, 216 pages {{ISBN|978-0195476262}}
{{Ministry of Energy (Pakistan)}}{{Electricity distribution companies of Pakistan}}{{Nuclear power in Pakistan}}{{Asia topic|Electricity sector in}}
{{Economy of Pakistan}}
{{Pakistan topics}}

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[[Category:Electric power in Pakistan]]