ISLAMABAD: The government intends to convert three power plants currently running on imported coal to utilize Thar coal, in collaboration with the Chinese government, according to sources from Business Recorder.
Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, who recently visited China, has been tasked with engaging the National Development and Reform Commission of China (NDRC) to facilitate the conversion of CPEC coal projects in Sahiwal, Port Qasim, and Hub to Thar coal. The conversion of the Jamshoro plant and the provision of Thar coal to the Lucky coal power plant are also under consideration.
Prime Minister Shehbaz Sharif has directed relevant authorities, including the Power Division, Ministry of Railways, Government of Sindh, NEPRA, PPIB, and Thar Coal Energy Board (TCEB), to expedite these conversions. Specific tasks include obtaining approval for the use of auxiliary power for Thar coal mining, replacing diesel consumption, conducting feasibility studies, and implementing changes by December 2025.
Additionally, the meeting decided on the privatization of certain power distribution companies (Discos). In Phase-I, IESCO, Gepco, and FESCO will be fully privatized, followed by LESCO, MEPCO, and HAZECO in Phase-II. SEPCO, HESCO, and PESCO will be offered long-term concession agreements to the private sector, while TESCO and QESCO will remain under government control due to their unique conditions.
The Privatisation Commission has been directed to hire a transaction advisor and complete necessary formalities to finalize Phase-I transactions by January 2026. The Power Division will engage a technical advisor to review the regulatory and policy framework for the privatisation and outsourcing of Discos.
Further directives include obtaining federal and NEPRA approval for a separate tariff category for electricity provision to CPEC SEZs, and a review of cost allocation and turbine installation sequencing for upcoming hydel projects by the Ministry of Water Resources and WAPDA.
Lastly, out of a strategic allocation of 2400-MW, only a 600-MW solar power plant will be pursued for investment with Saudi Arabia, and future generation plans will be adjusted accordingly.
Story by Mushtaq Ghumman
