Pakistan’s power sector is showing a clear shift in consumption patterns, according to the Pakistan Electricity Review 2026. The report highlights rising consumers but weak growth in grid demand.
The findings show that electricity sales through the national grid are not increasing in line with population growth. Instead, many users are shifting toward alternative energy sources, especially solar systems.
In FY25, grid electricity sales increased by only 1.7 percent. Total consumption reached 111 terawatt-hours. However, the number of consumers grew by 5.3 percent in the same period.
This gap shows a major change in usage behavior. More households are being connected, but average consumption per user is falling. The report links this trend mainly to the rising use of solar electricity systems.
Over a longer period, the trend becomes more visible. Grid electricity sales have declined by about 1 percent annually over the past five years. This decline continues despite population growth and moderate economic expansion.
Domestic sector data also shows mixed results. Household electricity sales increased by 4 percent in FY25. However, connections grew by 6 percent. This indicates lower usage per connection.
The agricultural sector shows a much sharper decline. Grid electricity consumption fell by 47 percent between FY22 and FY25. Farmers are increasingly adopting solar-powered irrigation systems.
In several distribution companies, rising consumer numbers are no longer leading to higher electricity sales. This suggests a structural change in how energy is consumed across the country.
The report explains that Pakistan’s electricity system is built for centralized supply. However, demand is gradually shifting toward decentralized and off-grid solutions.
Experts say this trend reflects changing energy economics. Solar power has become more affordable and accessible for households and farmers.
The review concludes that the power sector is facing a long-term imbalance. While the system is designed to increase grid electricity sales, consumers are steadily moving away from it.
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Authorities are expected to review these developments closely. The findings may influence future planning in Pakistan’s energy sector and infrastructure investments.
