Pakistan's power generation has risen sharply over the past year, but a growing reliance on coal has pushed up production costs, highlighting shifting dynamics in the country's energy mix.

Electricity generation reached 7,696 GWh in February 2026, marking an 11% increase compared with 6,945 GWh in February 2025. The rise has been attributed to stronger demand, supported by relatively lower tariffs and increased industrial reliance on the national grid, according to analysis by Arif Habib Limited.

Despite the annual gain, output fell by 16% on a month-on-month basis from 9,140 GWh in January 2026, indicating short-term fluctuations. Over the broader period of July-February FY26, power generation rose by 3% year-on-year to 84,192 GWh, compared with 81,738 GWh in the same period last year.

At the same time, the cost of generating electricity increased by 8% year-on-year, reaching Rs8.15 per kWh in February 2026, up from Rs7.57 per kWh a year earlier. The increase was linked to a reduced contribution from hydel and nuclear sources, alongside a higher share of imported coal.

Monthly cost figures, however, showed a decline of 30% from Rs11.64 per kWh in January, suggesting some easing in short-term pressures.

Coal emerged as the dominant source of electricity, accounting for 30.9% of the generation mix in February. Hydropower followed with a 23.2% share, while nuclear energy contributed 18.8%. Gas and RLNG made up 11.5% and 9.5% respectively.

Renewable sources remained relatively small contributors, with wind accounting for 3.3% and solar 1.2% of total generation.

The data point to a growing dependence on coal within Pakistan's energy system, coinciding with rising generation costs despite higher overall output.