Syed Saif Ul Hassan 
Sep 23, 2025
Pakistan has been enduring the burden of costly electricity production despite having the means to save costs, and given this rise in fuel prices and energy crisis in the country, Pakistan’s Independent System and Market Operator (ISMO) has published a new report, listing and ranking power plants in terms of the cheapest and most expensive electricity generation.
The list, known as the Economic Merit Order (EMO), helps determine which plants should operate first on the basis of their fuel costs.
The report highlights a significant disparity in power generation expenses, with costs ranging from just over Rs3 per unit at the cheapest plant to more than Rs72 at the priciest.
The cheapest electricity comes from Uch-I, at Rs3.11 per kWh, followed by Liberty Power at Rs5.12, and Thar coal-based plants between Rs5.5 and Rs6.5.
Mid-range plants include gas and imported coal units like Guddu (Combined Cycle) at Rs9.66, Port Qasim at Rs11.86, and Sahiwal Coal at Rs16.64.
RLNG plants are more expensive, often exceeding Rs20 per unit, with Bhikki, Baloki, and Punjab Thermal among them. The costliest plants use furnace oil (RFO) or high-speed diesel (HSD), with Nishat, K-Electric, and others charging Rs30 to 40 per unit, while diesel plants like Orient and Halmore exceed Rs58.
The most expensive power producer in Pakistan is Engro Powergen Qadirpur (HSD), making electricity at a staggering rate of Rs72.85 per unit.
The overall outline of the country's electricity production report shows that Pakistan's cheapest electricity comes from local gas and coal, while diesel and furnace oil plants are evidently inflating electricity rates.
