The financial performance of Pakistan’s listed power sector saw an improvement in the last fiscal year. The sector’s total revenue increased by 14 percent to Rs 54.6 billion.
According to a report by Arif Habib Limited, the total sales of power companies also increased by 10.1 percent to Rs 101 billion. Various factors played a role behind the improvement in the financial results, including a reduction in financial expenses and income from other sources.
During this period, the increase in electricity generation remained limited. The total generation in the fiscal year 2025-26 was recorded at 128,699 GWh, which is only 1.2 percent more than the previous year.
These figures paint a stark picture of the power sector. While the companies’ financial revenues have increased, overall power generation has not expanded at the same pace. Annual generation has been around 128,000 GWh for the past four years.
Improved utilisation of some power plants has also been important for the financial results. Improved availability of RLNG and the return of some industrial consumers to the grid have supported electricity consumption. Additional power packages for industrial and agricultural consumers have also improved demand.
Power companies have also benefited from their related businesses in addition to energy. According to the report, the profit earned from these activities has increased by 13.7% to Rs 46.9 billion. This shows that the income of some companies is no longer limited to the sale of electricity.
On the other hand, the termination of the basic power purchase agreement of Hub Power Company was a significant change for the sector. This agreement expired on October 1, 2025, which has affected the company’s revenue structure.
The latest results from the power sector suggest that despite improved financial performance, robust expansion in electricity demand and generation remains a challenge. The future performance of the sector will depend not only on tariffs and fiscal spending but also on industrial activity, consumer demand and efficient use of electricity.
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