ISLAMABAD: In addition to exorbitant energy costs, Pakistan has long struggled with an energy deficit. Notwithstanding these obstacles, domestic coal’s expanding share of the global energy production landscape offers encouraging financial prospects. It is anticipated that this tendency will protect the nation’s foreign exchange reserves and promote a robust domestic coal supply and production sector.
Alam Zeb Khan, Senior Joint Secretary at the Ministry of Energy, told WealthPK that Pakistan wants to reduce the foreign exchange expenditure on imported electricity generation, which currently stands at about 30%, by increasing the percentage of domestic coal in the country’s electricity fuel mix.
The coal production has increased over the last few years, as the graph below demonstrates.
He highlights the remarkable progress Pakistan has made in the generation of power from coal. The nation’s installed capacity, which comes from five power facilities that use Thar coal, is 3,300 MW. Four prominent coal-fired power plants—Huaneng Shandong Ruyi-Sahiwal Coal Power Plant, Port Qasim Coal-fired Power Plant, HubCo Coal-fired Power Plant, and Sindh-Engro Thar Coal Power Plant—which have been in operation since 2017—have contributed to this advancement.
The senior joint secretary points out that this progress benefits the economy in a number of ways.
By generating new employment opportunities in the coal production and supply chain, the development and usage of domestic coal resources are promoting economic growth.
Reducing reliance on imported energy sources also results in a more stable and self-reliant energy sector, which promotes long-term sustainability in addition to preserving valuable foreign exchange reserves.
He acknowledges that Pakistan’s dependence on homegrown coal for energy production raises potential difficulties in tackling global climate change concerns. To reach its carbon-emission targets, the nation must prioritize offsetting options.
“With the volatility of world oil prices brought on by geopolitical factors such as the crisis between Russia and Ukraine, the nation can no longer jeopardize its energy security by depending primarily on imports. Nonetheless, plantation efforts can be used to offset the increased carbon emissions brought on by the growing usage of coal.”
He praises China’s efforts to lessen the nation’s energy shortages and brings up the Shanghai Electric Thar Plant.
“The Shanghai Electric Thar plant, a facility with a capacity of 1.32GW operating on indigenous coal and financed as part of the China-Pakistan Economic Corridor (CPEC), has started generating power.”
WEALTHPK
