Pakistan to save up to $6bn on fuel imports with Thar coal project: PM Shehbaz
October 10, 2022
PM says petrol and liquid petroleum imports expenses touched $24 billion.
- Not benefitting from Pakistan's indigenous coal reserves huge mistake: PM.
- FM Bilawal terms Thar as public-partnership model of development.
THAR: Prime Minister Shehbaz Sharif on Monday termed the Thar coal project as a "game changer" following its potential to help the government save up to $6 billion on fuel imports amid its rising prices in Pakistan.
The premier shared his views during his visit to the Thar Coal Mines Block-II following the inauguration of the commercial operations of Phase-II of Sindh Engro Coal Mining Company (SECMC).
PM Shehbaz said that in the midst of the soaring prices of fuel, low-priced energy production via the Thar coal mines project will trigger development across the country.
He said that the expenditure on petrol and liquid petroleum imports touched $24 billion. The premier added that the project was high on the government's agenda given the decreased cost of power generation.
In Thar's Islamkot Tehsil, PM Shahbaz inaugurated a 330 MW Power Plant of Thar Energy Limited (TEL) and also inspected the construction site of SECMC Mine Phase-II.
The premier said it was a huge mistake to not have taken advantage of the country's indigenous coal reserves. To discuss formalities, he announced convening a meeting of stakeholders on Thar coal mines next week.
The prime minister added that the federal government, in collaboration with the Sindh government, would chalk out a policy framework on the coal mines project with an aim to connect it with other coal-powered power plants in the country producing 4,000 megawatts.
He added that the cost of coal was expected to reduce up to $30 with prices in the international markets coming down from $67 to $44.
Coal-powered plants, the prime minister said, would prove a feasible operation for electricity production at the rate of Rs10 per unit and that the coal project would save Pakistan's foreign exchange, as well as help, thrive the national economy.
The premier said that the project would be connected through a freight rail track for the transportation of coal to other parts of the country in March 2023. He appreciated the role of stakeholders in training local professionals and workers, and also lauded the inclusion of women working in the field, particularly at water plants and dump trucks.
Chinese Ambassador Nong Rong was also present at the inauguration and congratulated the government on the successful completion of the project. He lauded PM Shahbaz for his “consistent devotion and firm support” in strengthening Pakistan-China cooperation including in China–Pakistan Economic Corridor projects.
FM Bilawal terms project 'model of development'
Foreign Minister Bilawal Bhutto-Zardari, who was also present at the occasion, said that Thar — once notorious for its infant and maternal mortality rates, and malnutrition — had now emerged as a game changer and a public-partnership model of development.
The FM stressed replicating the collaborative projects in other parts of the country and expressed confidence that the prime minister would materialise the development plans at a fast pace.
Chief Minister Sindh Syed Murad Ali Shah said the Sindh government allocated 40% equity along with 60% contributed by Sindh Engro in the public-private partnership on the Thar Coal mines project.
He termed Sindh as the ‘energy basket of Pakistan’, with immense potential for natural energy resources, including solar and wind energy.
