Plan to Convert Coal Power Plants to Thar Lignite Faces Major Setback

LAHORE: The government’s plan to fully convert coal power plants to 100% Thar lignite has encountered a major hurdle, with the Asian Development Bank (ADB) rejecting the proposal for Jamshoro Power sector news Unit I. ADB, the project’s largest creditor, cited legal agreements allowing only 20% local lignite, with 80% imported coal, as per the original deal.

An energy ministry official confirmed that shifting to 100% Thar lignite would breach the existing legal covenants. ADB also raised environmental concerns, highlighting that Thar lignite’s higher emissions could surpass national and international air quality standards. The proposal, which also requires significant infrastructure changes, could have serious environmental and socio-economic consequences.

Story by Nasir Jamal

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