Islamabad: The federal government has decided to convert thermal power plants to using local coal to save valuable foreign exchange reserves, news sources reported on June 20. The government will shift three power plants to utilise coal extracted from Thar in the coming months.
Reportedly, the said three plants include; Port Qasim Coal Power Plant, Sahiwal Coal Power Plant, and China Hub Coal Power Plant, each with a generation capacity of 1,320 MW of electricity. The three power plants, which run on imported coal, have a combined capacity of 3,960 MWs of electricity. According to reports, the decision to no longer import coal was made in light of rising worldwide coal costs, which have hit USD 400 per tonne. As a result of rising international coal prices, the per-unit production price has also risen to PKR 18 from PKR 4-5.
Furthermore, the government has decided to hire a consultancy firm to analyse the coal conversion system, with a report due in one year. Currently, 660 MWs of Thar coal-based power are being added to the national grid, and a second 660 MW facility, Lucky Power Plant, is being developed in Karachi using Thar coal as fuel. It is important to mention here that Pakistan has been using local coal in brick kilns and imported coal in the power generation and cement industry.
Pakistan has imported a total of USD 20 billion worth of fuel in the years 2021–22, which has resulted in a massive Current Account Deficit (CAD). The power sector consumes the majority of coal, and its share has climbed to 44.5 % from 42.7 % during the same period last year.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
