Overview of the value chain of electricity generation, transmission and distribution in Pakistan, with a focus on electricity cost, excess capacity and circular debt. From 2020 onward, Pakistan’s electricity generation will exceed peak demand. Prices are already over 25% higher than average in comparable countries and are set to rise further. Circular debt is estimated at PKR 2.1-2.2 trillion, with further build up expected due to increasing capacity charges.

1. F O R C I R C U L AT I O N
How are Pakistanis suffering from too
much electricity?
Macro Pakistani

2. 2
From 2020 onward, Pakistan’s electricity generation will exceed peak demand
Note: Excludes K-Electric
Source: NEPRA

3. 3
Electricity price is over 25% higher than average in comparable countries
Source: Engro Energy Thought Paper; Bloomberg New Energy Finance
Industrial price
26% above
average
Residential
price 28%
above average

4. 4
Over 40% of the cost of electricity is made up of capacity charges
Note: Excludes K-Electric
Source: NEPRA, MP Analysis

5. 5
Distribution inefficiencies & delayed tariffs highest contributors to circular debt
Source: IMF