Pakistan generated 14.94 TWh of electricity in August 2026, up 5.1% year on year, marking the third-highest August level on record, according to Arif Habib Limited Research (AHL).

August generation was 1.2% lower than July's 15.12 TWh but higher than 14.22 TWh in August 2025. The gain was fueled by higher hydropower, coal, gas and wind generation, the research note said.

Imported coal recorded the biggest increase among major sources, more than doubling to 2.33 TWh from 1.14 TWh a year earlier. Its share of Pakistan's total power generation rose to 16.6% from 8%. Local coal-fired generation rose 13% on the year to 1.63 TWh, while gas-fired output grew 27% to 1.31 TWh.

Wind generation jumped 63% to 833 GWh, accounting for 5.6% of the total, higher than 3.6% in the same period last year.

Hydropower remained Pakistan's largest source, producing 5.65 TWh, up about 2% from a year ago. It made up 37.8% of total generation, data showed.

Generation from residual fuel oil surged 248% on the year to 321 GWh in August, while solar output rose 8% to 112 GWh.

RLNG-fired power generation dived 52% to 1.05 TWh last month, cutting its share of the mix to 7% from 15.3%. AHL attributed the decline to a sharp reduction in LNG imports amid geopolitical disruptions. Of seven long-term cargoes originally scheduled for August, only one was imported by PSO under its long-term contract, the note said.

Nuclear generation fell 29% year on year to 1.53 GWh, lowering its proportion to 10.2% from 15.1%.

In addition, average unadjusted fuel cost rose 38% to PKR 10.01/KWh ($0.04/KWh) in August from PKR 7.27/KWh a year earlier, the note said.

AHL said RLNG and furnace oil together made up 42% of the unadjusted fuel cost, adding PKR 3.23/KWh and PKR 0.97/KWh, respectively, even though they accounted for a much smaller share of total generation.

RLNG fuel cost climbed 111% from the year prior to PKR 45.93/KWh, the second-highest level on record, as high international oil prices raised the cost of the limited LNG cargo imported last month.

Imported coal fuel cost increased 21% to PKR 17.09/KWh, while local coal fuel cost slid 54% to PKR 5.50/KWh, AHL said.

AHL said the adjusted fuel cost for August stood at PKR 8.83/KWh, above NEPRA's reference cost of PKR 7.10/KWh. Distribution companies have sought a positive fuel charge adjustment of PKR 1.73/KWh for electricity consumed in August.

AHL attributed the higher fuel charge adjustment to a costlier generation mix, particularly RLNG and furnace oil, while elevated international oil prices added further pressure. The higher generation therefore did not translate into lower average fuel costs, even as strong hydropower and coal output helped offset some of the expensive thermal generation.