Report by Engineering Post
Pakistan’s energy sector was the foundational backbone of the national economy, trade competitiveness and overall quality of life.
During the first nine months of Y2026, as per latest available data, Pakistan continued to face challenges related to energy affordability, sustainability and security due to the ongoing current crisis, driven by geopolitical tensions and disruptions around the Strait of Hormuz. Nonetheless, several strategic reforms , capacity enhancements, and modifications in the energy mix indicated a gradual progression towards a more resilient and diversified energy landscape.
According to the information gathered from the official sources concerned, as of March 2026, the total installed electricity generation capacity stood at 49651 MW, with a progressive shift toward cleaner energy sources.
Hydel, nuclear and renewable sources collectively accounted for 50.8 percent of the installed capacity, up from the previous years, while the share of thermal power declined to 49.2 percent in terms of electricity generation. Pakistan produced 92835 GWH during July-March FY2026, of which 53.1 percent was contributed by hydel, nuclear, and renewable sources, reflecting a welcome transition towards indigenous and environmental friendly energy sources.
During July-March FY 2026, total consumption of petroleum products across all sectors amounted to 13.64 million metric tonnes (MMT), reflecting a Year-On-Year (YoY) increase of 3.5 percent as compared to 13.17 MMT in the same period of FY 2025.The transport sector , which remains the leading consumer, experienced 6.7 percent increase in consumption, rising from 10.6 MMT in July=March FY 2025 to 11.2 MMT (82.5 percent of total demand) during the same period of FY 2026.This growth indicated heightened mobility, a rebound in trade and logistics, and an increased demand for fuel from road transport and commercial vehicles. Pakistan imported 13.8 MMT of petroleum products in the period under review, an increase from 12.5 MMT during the same timeframe in FY 2025, representing a 10.5 percent rise in quantity.
The total import bill in monetary terms increased to US $ 8.9 billion from US $ 8.4 billion last year representing a 6.3 percent rise. This as such reflected a combination of higher import volumes and international oil prices volatility
Further, during July-March 2026, the average natural gas consumption was approximately 2029 million cubic feet per day (MMCFD), including 613 MMCFD from regasified liquefied natural gas (RLNG).
During this period, 149808 additional gas connections including 148225 Domestic, 1578 Commercial and 105 Industrial connections were provided across the country. The highest gas consumption levels originated from the power sector, domestic use and fertilizer production, accounting for 924 MMCFD, 772 MMCFD and 784 MMCFD, respectively.
