As per the statistics mentioned in the economic survey of Pakistan FY2025-26, the total electricity consumption in Pakistan stood at 83,143 GWh during July-March FY 2026, compared to 80,811 GWh in the corresponding period of FY2025, reflecting a 3.8 percent rise in electricity usage. The household sector continued to dominate electricity consumption, with its share falling to 47.5 percent (39,472 GWh) during July- March FY 2026, down from 49.6 percent (39,730 GWh) in the same period of FY 2025. This decrease indicates a relative structural shift to alternative energy sources because of tariff hikes, which have reduced affordability and incentivized conservation. In contrast, industrial consumption increased to 26,205 GWh, up from 21,083 GWh, increasing its share from 26.3 percent to 31.5 percent.
Electricity usage in the agriculture sector dropped significantly by 42.3 percent, declining from 4,566 GWh to 2,636 GWh, which reduced its share from 5.7 percent to 3.2 percent. This sharp decline is likely because of changes in irrigation practices, rainfall patterns, and possibly a switch to diesel-powered or solar alternatives in response to rising electricity costs. Statistics showed that the commercial sector recorded a modest increase in consumption, from 6,898 GWh to 7,044 GWh. This rise indicates a marginal pickup in business and retail activity, mainly in urban centers. The others category, comprising public lighting, bulk supply, and government buildings, consumed 7,785 GWh, slightly decreasing its share from 9.8 percent to 9.4 percent. In Pakistan, the energy sector holds particular significance given the country’s growing energy demand arising from population growth, urbanization, and expanding economic activity. The performance of the energy sector has direct implications for macroeconomic stability through its impact on inflation, fiscal balances, external accounts, and overall cost structures across the economy. Therefore, ensuring an efficient, secure, affordable, and sustainable energy system remains central to Pakistan’s broader development and growth agenda. The increase in installed capacity, driven by the diversified energy landscape and termination of costly and underutilized thermal PPAs, reflects the government’s deliberate shift towards a more sustainable, cost-efficient, and environmentally responsible energy future.
The government is prioritizing energy security, fiscal prudence, and climate resilience by gradually phasing out expensive fossil fuel-based generation and increasing the share of hydel, nuclear, and renewable sources in the energy mix. These actions are in line with broader national and international commitments to transition towards low-carbon energy systems, signaling a decisive move toward a cleaner and more sustainable electricity sector.