Ahmed Khan Malik

The laying of railway track between Chhor and Islamkot areas in the Thar region will help supply indigenous and cheap coal to other parts of the country for power generation.  The railway track project was approved by the Sindh government, and the federal government has given nod to its execution.  The project aims to connect the coal mines in Sindh to the national and global energy markets, and this railway track will serve as a lifeline for Thar's abundant coal reserves, ensuring their efficient transportation to power projects across the country. Abu Bakar Ahmed, Sindh Energy Secretary, said that the federal government had given approval for the construction of a 105-kilometre railway line, spanning from Chhor to Islamkot, ultimately connecting to Port Qasim, a deep-sea port in Karachi. "The project is slated for completion by December 2024 and is estimated to cost Rs58 billion, with equal financial participation from both the federal and Sindh governments," he said. 

He told WealthPK that the project aimed to transition four to five thermal power projects, currently reliant on imported coal, to Thar coal to save the precious foreign exchange. He said that the primary objectives were to augment the contribution of cost-effective coal-based energy in Pakistan's energy mix and to alleviate the financial burden on end-consumers by lowering overall power bills. Furthermore, he said the railway network would facilitate the supply of Thar coal to fertilizer and cement manufacturers, offering the potential for coal-to-gas conversion. "Currently, coal transportation relies heavily on trucks, which proves to be an expensive and time-consuming method, unsuitable for large-scale bulk supply increases." Pakistan currently spends approximately $2 billion annually on coal imports. The country currently receives around 3,500 megawatts of power from coal-fired projects. Coal-fired power projects were virtually nonexistent in Pakistan a few years ago.  Ahmed said that sustained power production in Pakistan necessitated reliance on fossil fuels, and Thar coal stood out as one of the most cost-effective fuel options available.

Pakistan sits on 175 billion tonnes of coal reserves in Tharparkar alone, equivalent to 50 billion tonnes of oil equivalent — surpassing the oil reserves of Saudi Arabia and Iran combined, according to the Sindh Engro Coal Mining Company. While these coal reserves could potentially meet Pakistan's electricity demand for centuries, their application extends beyond power generation, opening avenues for diverse utilisation. The Sindh's energy secretary said the escalating use of expensive fuels such as imported furnace oil had driven the cost of power production to a record high of Rs72 per unit, compared to Rs28 per unit just two years ago. "This surge in production costs is a major contributor to the recent surge in electricity bills, which has prompted public protests. Thar coal emerges as a viable and sustainable solution to the ongoing power crisis, with its increased utilisation expected to alleviate the financial burden on consumers." Ahmed said that the project would hopefully meet the deadline of completion as both federal and provincial governments were fully aligned in realising this railway track project.

Credit: INP-WealthPk