The Sindh government is set to expand mining activities in the existing blocks of Thar coalfields to enhance coal extraction for electricity production. Currently, mining in two blocks is yielding 1,320MW of power each. Musadiq Ahmed Khan, Sindh’s Energy Secretary, emphasized that expanding within the existing fields is economically viable compared to the substantial investment required for new blocks.
Musadiq Ahmed Khan highlighted that the expansion would result in cheaper coal for electricity generation. He noted that new block investments would increase coal costs, making electricity production less feasible.
Pakistan faces high electricity costs due to expensive imported fuels like LNG, diesel, and foreign coal, leading to inflated power bills for consumers. To address this, the government plans to convert imported coal-fired power plants to Thar coal, saving foreign exchange and reducing electricity costs.
The Thar coalfield, with a resource potential of 175 billion tonnes, spans over 9,000 sq-km in the Thar Desert, Tharparkar district. Thar Block-II alone contains two billion tonnes of lignite reserves, with 1.57 billion tonnes exploitable, capable of producing 5,000MW of electricity for 50 years. Thar Block-1 features a 7.8 million tonnes per annum open-pit coal mine and a 1.3GW ultra-supercritical coal-fired power plant.
Musadiq Ahmed Khan stated that the government aims to run Sahiwal, Bin Qasim, and Hubco power plants on local coal. The goal of supplying affordable coal to these plants depends on expanding mining operations within the existing blocks. Post-budget, the Sindh government plans to expedite the project, demonstrating its commitment to enhancing coal extraction under the national policy. Sindh, as the country’s energy hub, plays a significant role in contributing to the national grid.