Pakistan’s power generation dropped 15% MoM during February— report

A worker loads solar panels on a vehicle, outside a shop at a market selling electronic items in Karachi, Pakistan on June 11, 2024. (REUTERS/File)
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Updated 17 March 2025
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Pakistan’s power generation dropped 15% MoM during February— report

  • Pakistan’s power generation cost declined by 13% year-on-year and 30% month-on-month during February 2025, says report
  • Financial analysts attribute power generation decline to a lack of industrial activity, increasing shift toward solar energy

KARACHI: Pakistan’s power generation dropped by 15% month-on-month (MoM) in February 2025, a report by a top brokerage firm said on Monday, which analysts attributed to reduced demand due to slow industrial activity and an increasing shift of customers toward solar energy. 

According to a report by brokerage firm Topline Securities, total electricity generation dropped by 3% year-on-year to 81,738 GWh over the first eight months of the fiscal year 2024-25 (from July-February). This was down from 84,317 GWh in the corresponding period last year, it said. 

“Pakistan’s power generation decreased by 2% YoY and 15% MoM to 6,945 GWh in Feb 2025,” Topline Securities said. 

The report cited a decline of 13% in power generation cost YoY and 30% MoM in February 2025, adding that in the first eight months of the current fiscal year, power generation cost declined by 3% to Rs8.8 per unit.

Financial analysts attributed the decline in power generation due to reduced demand as a result of lack of industrial activity and an increasing number of people shifting toward solar energy. 

“There is reduced demand due to industrial activity which you can also see in the large scale manufacturing (LSM) numbers,” Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., told Arab News. 

He said another reason for the decline in power generation was the increasing shift of residential consumers toward solar energy. He said commercial consumers had also installed their own captive plants that run on gas and coal. 

“This also shows a shift toward alternative [sources of energy] which decreases the grid’s usage,” he added. 

Samiullah Tariq, the head of research at Pakistan Kuwait Investment Company Ltd., agreed. 

“Reasons include reduced industrial activity, people leaving the [national] grid due to higher [energy] prices and solar adoption,” Tariq said. 

Pakistan has sought to ease fiscal pressure in recent months by undertaking energy reforms that reduce tariffs and slash capacity payments to independent power producers (IPPs). The federal cabinet approved a plan in January to renegotiate agreements with 14 IPPs in its bid to lower electricity costs and addressing the mounting circular debt.


Pakistan to raise special force to guard Balochistan minerals as Barrick reviews Reko Diq project — official

Updated 07 February 2026
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Pakistan to raise special force to guard Balochistan minerals as Barrick reviews Reko Diq project — official

  • Barrick decision follows coordinated separatist attacks in several districts across Balochistan last Saturday that killed over 50 civilians and security personnel
  • Balochistan, which borders Iran and Afghanistan, is the site of a decades-long insurgency by Baloch separatist groups who often attack security forces, foreigners

KARACHI: Pakistan has decided to boost intelligence network and raise a special force to guard the mineral-rich Balochistan province and its borders with Iran and Afghanistan, a provincial government official said on Saturday.

The development comes days after Canadian giant Barrick Mining Corporation said it planned to “immediately” begin a comprehensive review of all aspects of the multibillion-dollar Reko Diq copper-gold project in Balochistan.

Barrick decision followed coordinated separatist attacks by the Baloch Liberation Army (BLA) group in several districts across Balochistan last Saturday that killed 36 civilians and 22 security personnel. Authorities said they had killed 216 militants in follow-up operations.

Mineral-rich Balochistan, which borders Iran and Afghanistan, is the site of a decades-long insurgency waged by Baloch separatist groups who often attack security forces, foreigners and non-local Pakistanis and kidnap government officials.

“In light of the terrorists events, the provincial government in tandem with security forces is redesigning the entire security architecture,” Shahid Rind, an aide to Chief Minister Sarfraz Bugti for media and political affairs, told Arab News.

“This includes raising of dedicated Frontier Corps for the mineral-bearing area, securing both borders i.e. Iran and Afghanistan.”

Arab News reached out to Pakistan’s information minister, Attaullah Tarar, but he did not respond to questions seeking comment on the matter.

The Balochistan government will also beef up intelligence network and work closely with mining companies in the region.

“The Balochistan government is extremely serious about foreign investment in the province and considers Reko Diq as the flag-bearer of foreign investment,” Rind said.

“The provincial government will do whatever is necessary to maintain that.”

The recent attacks have apparently alarmed international investors, especially Barrick, which is developing one of the world’s largest copper and gold mines in Balochistan.

“As we stated in our public documents, Barrick is undertaking a review of all aspects of the Reko Diq project, including with respect to the project’s security arrangements, development timetable and capital budget,” a Barrick spokesperson said in response to an Arab News email.

In a Feb. 5 statement issued with its fourth-quarter financial results, Barrick said the Reko Diq project “continued to advance site works in Q4, although in light of a recent increase in security incidents, management is currently reviewing all aspects of the project.”

“The review will begin immediately,” the Barrick spokesperson said. “An update will be provided when the review has been completed.”

Barrick owns 50 percent share in Reko Diq, along with three Pakistani federal state-owned enterprises that own 25 percent, while the Balochistan government has the remaining 25 percent share in the project.

The project is expected to begin production in 2028 and is central to Pakistan’s hopes of boosting mineral exports and attracting foreign investment into its underdeveloped mining sector. Despite heightened threats in Balochistan, development linked to the project continues in other parts of the country.

Barrick is expected to start investing in Pakistan’s port infrastructure soon as it prepares for exports.

Pakistan International Bulk Terminal Ltd. (PIBT), the country’s first dirty bulk terminal located at Port Qasim in Karachi, will host dedicated facilities to ship Reko Diq’s output.

PIBT CEO Sharique Azim Siddiqui told Arab News this week that Barrick would invest $150 million to build a shed and upgrade other dedicated facilities to handle shipments of copper-gold concentrate once Reko Diq production begins in 2028.

Barrick’s Pakistani subsidiary, Reko Diq Mining Company, last week signed an export agreement with PIBT under which the miner will export 800,000 tons of copper and gold concentrate through the terminal in the first phase, doubling the volume in the second phase, according to Siddiqui.

Revived in 2022 after years of legal disputes, the Reko Diq project is billed by the government as a transformative investment for Balochistan, Pakistan’s largest but least developed province.

But persistent militant activity and rising attacks targeting security forces, state institutions and infrastructure have raised concerns among investors.

The latest separatist attacks, one of the deadliest flare-ups in Balochistan in recent years, have prompted large-scale security operations across the province as authorities continue their hunt for militant facilitators.

Siddiqui said the recent surge in militancy in Balochistan remains a concern for them.

“Security challenges have always been there in Pakistan. The investors do realize that, and we take it in our stride, and we hope for the best,” Siddiqui said.

“If there is no security for the cargo movement, then that’s going to hurt that (Reko Diq) project and hurt everyone.”