Electricity Supply Improves as Power Plants Shift to Local Gas
Pakistan's Power Division has reported that electricity supply conditions have improved following a strategic shift by power generation plants to domestic natural gas from more expensive imported liquefied natural gas. The fuel substitution has eased generation costs and helped bring additional capacity online, reducing load-shedding pressure across the national grid.
The move to prioritise local gas availability for power plants reflects a policy decision to optimise fuel allocation in a manner that reduces dependence on dollar-denominated LNG imports, which have strained the country's external account during periods of elevated international energy prices. Domestic gas, when available, provides a significantly cheaper generation input.
The improvement in supply comes at a time when elevated temperatures are beginning to raise residential and commercial electricity demand ahead of the summer peak load season. Any meaningful improvement in generation capacity margin going into May and June would be significant for managing public pressure over load management.
The Power Division's announcement is seen as a positive but contingent development, with experts cautioning that the improvement in supply depends on sustained domestic gas availability, which has historically been subject to seasonal and infrastructure constraints. Long-term resolution of Pakistan's circular debt and capacity payment challenges remains a structural priority.
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