Pakistan Is Relying on Coal More Than Ever for Power Generation Amid Energy Crisis

Due to problems in the supply of Regasified Liquefied Natural Gas (RLNG), Pakistan has become more dependent on both local and imported coal for power generation, resulting in an all-time high for coal-based energy generation.

In the first nine months of FY2026, coal-based power generation made up 22% of Pakistan’s total energy generation, the highest percentage ever, according to Central Power Purchasing Agency (CPPA) data compiled by Topline Securities.

As RLNG supplies decreased, Pakistan increasingly relied on imported coal plants as the next economical alternative for electricity production. During that time, the generation from local coal-based projects also increased.

The figures reveal that coal’s share in Pakistan’s power mix has consistently increased in recent years, growing from 9.8% in FY2018 to 22% in first nine months of the 2026 Financial Year.

Disruptions in the fuel supply, growing import prices, circular debt, and a growing reliance on coal-based power generation have imposed pressure on Pakistan’s energy sector. Pakistan has also made significant investments in Thar coal and imported electricity projects under the China-Pakistan Economic Corridor (CPEC).