KARACHI - Sindh Chief Minister (CM) Syed Murad Ali Shah has called Thar Coal Pakistan’s most affordable energy source. “Since 2019, Thar Coal Block-II has generated 27,000 GWh of electricity at a fuel cost of Rs4.8 per kWh, compared to Rs19.5 per kWh for imported coal. This has saved Pakistan approximately $1.3 billion in foreign exchange,” the CM said during the 28th meeting of the Thar Coal Energy Board at CM House on Monday, according to a statement issued from Sindh Information Department. The meeting was attended by provincial ministers, senior officials, and federal representatives via video link, including Federal Finance Minister Muhammad Aurangzeb and Deputy Chairman Planning Commission.
Despite its potential, the evacuation of power generated at Thar remains limited due to insufficient transmission infrastructure. “We are working with the federal government to address this issue and ensure that the full economic and energy benefits of Thar Coal are realised,” said the CM.
Thar currently generates 2,640 MW of electricity, powering more than six million households. However, the limitations in the transmission network prevent its maximum utilisation, which could significantly reduce national electricity costs. A 105-km rail line connecting the Thar Coalfields in Islamkot to Chorr is under construction, the meeting was informed. The project, undertaken by the Frontier Works Organisation (FWO), includes extensive earthwork, with sleepers procured and material acquisition underway.
Land acquisition for the rail link is progressing, with Rs60.8 million allocated for the purchase of private land in Tharparkar. Additionally, a 9-km rail track is being laid to connect Bin Qasim with the Lucky Power Plant to streamline coal delivery for local power production. The rail link is expected to be operational by December 2025, which the CM said would make coal transportation to upcountry cost-efficient.
The CEO of Sindh Engro Coal Mining Company (SECMC) briefed the board on the planned expansion of the Block-II mine. Its capacity is set to increase from 7.6 million tons per annum (mtpa) to 11.2 mtpa by 2025. Financial arrangements are in place, with Chinese lenders and local institutions, including Meezan Bank, providing support. The board also approved tariff adjustments for the SECMC mine’s Phase-II operations and extended the tenure of the Thar Coal Tariff Determination Committee members until August 2025.
Calling the development of Thar Coal a dream realised under the leadership of President Asif Ali Zardari, the CM said the project reflected the vision of Shaheed Mohtarma Benazir Bhutto. Murad Ali Shah expressed confidence that with improved transmission infrastructure, expanded mining operations, and completed rail connectivity, Thar Coal will play a pivotal role in transforming Pakistan’s energy landscape. He said these efforts would ensure affordable electricity for millions while reducing reliance on costly imports.