ISLAMABAD – Pakistan’s electricity capacity has reached 46,605 megawatts (MW), but falling power usage is driving up idle costs. According to the Economic Survey 2024–25, capacity rose by 1.6% this fiscal year. The boost came mainly from net metering, which added 2,813 MW. However, this increase has raised capacity payments to between Rs2.5 and Rs2.8 trillion. These are payments made for unused electricity—costs that consumers must still pay.
To cut these rising expenses, the government ended power purchase deals with several private producers from October 2024. Plants owned by HUBCO, Lalpir, Pakgen, Rousch, Saba, and Atlas Power are among those affected. Still, 55.7% of the country’s power comes from thermal sources. Hydel makes up 24.4%, renewables 12.2%, and nuclear 7.8%. The shift toward cleaner energy is growing. This year, clean energy made up more than half of all power generated.
Despite more capacity, electricity use dropped 3.6% to 80,111 GWh from 83,109 GWh last year. This drop is due to high tariffs, conservation efforts, and off-grid solar use. Residential use increased slightly, now taking 49.6% of total demand. But industrial use declined by 4.3%. Agricultural demand fell the most—by over 34%—due to shifting irrigation habits and high energy costs.
Meanwhile, the oil sector saw increased demand—especially in transport—while industrial and power use of oil declined. Total petroleum use rose 7%, led by a jump in fuel for vehicles. But power plants used 77% less furnace oil, preferring hydro, LNG, coal, and nuclear options. Crude oil imports also rose 8.8%, but global price drops kept import bills steady. Jet fuel use nearly doubled as air travel recovered.
The gas sector continues to play a key role, supplying nearly a third of Pakistan’s energy needs. With a vast network of over 200,000 km, gas reaches 10.7 million users. To meet demand, the government is boosting both local output and imports. Two major terminals now handle 1,200 MMCFD of imported LNG. The shift toward cleaner and more reliable energy continues, but managing rising idle costs remains a serious challenge.