This study investigated atmospheric changes that occurred due to changes in energy production and consumption before and during the COVID-19 pandemic. We analyzed nitrogen dioxide (NO2), aerosol optical depth (AOD), and rainfall patterns to understand the associated changes in emissions, especially from the power generation sector, before (2018 and 2019) and during the lockdown of 2020 across Pakistan. Regression analysis indicated a strong association between energy production by thermal power plants and tropospheric NO2 concentrations. Notably, a comparison between emission sources showed that the NO2 emissions from a single thermal power plant were equivalent to the emissions from a major city. During the lockdown, we observed a 40% reduction in NO2 emissions from coal-based power plants and a 30% reduction in mega- and major cities compared to the same retro in 2019. We also observed an approximate 25% decrease in AOD in the industrial and energy sectors, although no major decrease was obvious in the cities. Rainfall contributed to reducing the NO2 concentrations during monsoon season across all power plants in Pakistan, whereas it did not significantly correlate with AOD. The findings highlight the need for appropriate management and use of renewable energy in the industrial sector and transportation systems. Future research could estimate the environmental and public health costs linked to pollution originating from thermal energy production and poor transportation infrastructure.