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. Provincial and federal agencies, who are the largest consumers, often do not pay their bills. At one point electricity generation had shrunk by up to 50% due to an over-reliance on fossil fuels. The country was hit by its worst power crisis in 2007 when production fell by 6000 MW and massive blackouts followed suit. Load shedding and power blackouts had become severe in Pakistan before 2016. 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.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. The electricity transmission network, currently, has the capacity to handle more than 53,000 MVA. 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 fromElectricity 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. During FY2024, total electricity consumption stood at 111,110 GWh, of which sector-wise share is as follows: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 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. 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. Due to over reliance of Pakistan on dams for electricity generation, some environmental impacts of dams such as submergence of usable/ecological land and their negative impact on Pakistan's mangrove forests due to loss of river silt load, as well as increased risk of severe floods have become evident.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 (PPIB)References
Further reading
* Robert M. Hathaway, editor, and Michael Kugelman, editor, ''Powering Pakistan'', Oxford University Press, USA (15 January 2010), hardcover, 216 pages {{DEFAULTSORT:Electricity Sector in Pakistan Electric power in Pakistan