ISLAMABAD: The Pakistani government is considering approaching local banks to finance the conversion of power plants from imported coal to Thar coal, as well as the expansion of Thar coal mines. This initiative, aimed at enhancing energy security and reducing fuel costs, was discussed in a recent meeting between Pakistani officials, Chinese experts, and representatives from the Chinese embassy.
Led by Additional Secretary Power Division-1, Khushhal Khan, the Pakistani side emphasized that switching to Thar coal is essential for improving power generation capacity, lowering tariffs, and ensuring the financial sustainability of the power sector. A study by German firm M/s Fichtner supports the feasibility of this conversion, which could reduce consumer tariffs significantly and save up to $892 million in foreign exchange.
However, the Chinese side, while recognizing the benefits, expressed concerns about the technical challenges and equipment adaptations required for using Thar coal in existing plants. A joint feasibility study has been suggested to address these concerns, with further expert-level discussions planned to refine the proposal.
Story by Mushtaq Ghumman
