Coal share in power sector grows

Pakistan’s power sector is shifting as locally mined coal gains a larger share in electricity generation, easing energy costs and reducing dependence on imports.

According to a recent report of Topline Securities, power generation in March 2025 reached 8,409 gigawatt-hours (GWh), marking a 5% annual increase and a 21% jump from February 2025.

The standout figure, however, was the 62% year-on-year surge in electricity produced from local coal, which climbed to 1,393 GWh in March 2025 compared to 862 GWh in the same month of last year. This growth has elevated local coal’s contribution to the national energy mix to 17%, up from 11% a year earlier, signalling a strategic pivot towards indigenous resources.

For decades, local coal reserves in Thar, Sindh, estimated at 175 billion tons, remained untapped due to technical challenges and limited investment. However, the energy crisis of the 2010s, marked by prolonged blackouts and soaring import bills, pushed the government to rethink its strategy.