Electricity sector in Pakistan

Electricity in Pakistan is generated, transmitted and distributed by two vertically integrated public sector companies, first one being Water and Power Development Authority (WAPDA) responsible for the production of hydroelectricity and its supply to the consumers by electricity distribution companies (DISCOS) under the Pakistan Electric Power Company (PEPCO) being the other integrated company. Currently, there are 12 distribution companies and a National Transmission And Dispatch Company (NTDC) which are all in the public sector except Karachi Electric in the city of Karachi and its surrounding areas. There were around 36 independent power producers (IPPs) that contribute significantly to the electricity generation in Pakistan. As of 2025, the Government of Pakistan is focusing to re-structure the agreement with IPPs and facilitate the end users.

As of 2022, 95% of Pakistan's population had access to electricity. Pakistan aims to generate 60% of its electricity from renewable sources, and has set targets for reduction in greenhouse gas emissions. It is already facing a 'solar boom', adding an estimated 17 GW worth of clean solar energy to the grid in 2024 alone, partly due to availability of cheap Chinese solar panels and tax exemptions from the government.

Following 2022 dearth of imported LNG in Pakistan, the country indicated it would quadruple its coal power plants, which use domestic coal. Electricity generation capacity from coal has seen significant growth in recent years, owing to its utilization of cheap domestic coal to meet the country's rising electricity demands. The frequent increases in electricity, natural gas, petrol, and diesel prices are substantial contributors, driving inflation and consequently decreasing industrial production.