Pakistan’s electricity system is facing a widening gap between rising consumer numbers and stagnant grid demand, as more users shift toward alternative energy sources, according to the Pakistan Electricity Review 2026.
The report shows that grid electricity sales increased only 1.7% in FY25, reaching 111 TWh, while the number of electricity consumers rose 5.3% over the same period. This indicates that although more connections are being added, average reliance on grid electricity is declining.
The report links this trend mainly to the rapid expansion of solar energy, which is reducing dependence on the national grid.
Over a longer period, the imbalance becomes more pronounced. Despite average population growth of around 2% annually and real GDP growth of about 3%, grid electricity sales have fallen by roughly 1% per year over the past five years, suggesting that growing electricity demand is increasingly being met outside the central grid system.
Sector-wise data shows similar patterns. Domestic electricity sales rose 4% in FY25, but household connections increased by 6%, reflecting lower per-household consumption from the grid. In agriculture, grid electricity use dropped sharply by 47% between FY22 and FY25, as farmers shifted toward solar-powered irrigation systems.
In several distribution companies, the rise in consumers is no longer translating into higher electricity sales.
The report concludes that Pakistan’s power sector is now operating under a structural imbalance: a centralized grid system designed for growing demand, while actual consumption is increasingly decentralizing and moving off-grid.
