ISLAMABAD: Prime Minister Shehbaz Sharif has constituted a committee headed by Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik to undertake a comprehensive review and stocktake of the sharp cost escalation in Thar Coal Railway Connectivity Project (TCRCP), well-informed sources told Business Recorder.
The committee comprises the Minister for Power, Chairman PMIC, National Coordinator Task Force on Power Lt Gen Zafar Iqbal, Secretary Railways, Managing Director PPIB, and CEO Railways.
The committee has been assigned the following Terms of Reference (ToRs):
(i) review the project cost, financing structure, and funding assumptions, and determine the reasons for the steep cost escalation compared to the originally approved PC-1, including whether the increase is attributable to scope changes, design modifications, revised timelines, or inefficiencies; (ii) examine variations in the project scope since the approval of the first PC-1 and assess their necessity, justification, and impact on overall project economics; and
(iii) assess the projected tariff and transportation cost of rail connectivity for power plants and evaluate whether the rail system represents a cost-effective and economically viable mode of coal transportation compared to available alternatives.
READ MORE: Challenges related to Thar rail link: LEPCL seeks Leghari’s intervention
According to sources the Power Division has also been directed to engage a top-tier international consultant to design, structure, and support the solarisation of selected high-loss feeders in QESCO and PESCO, ensuring the adoption of global best practices, robust technical standards, and cost-effective solutions.
The Division has further been instructed to establish a dedicated Solarisation Implementation Unit/Cell to execute the project end-to-end and supervise implementation through a scientifically designed monitoring and evaluation framework, including clearly defined milestones, performance indicators, and outcome-based accountability mechanisms.
Additionally, the Power Division, in coordination with provincial governments, will determine the precise funding requirements of the projects and finalise the most effective and sustainable financing model. The cost-sharing arrangements among consumers, provincial governments, and the federal government will be clearly defined before submission to the Prime Minister for approval.
Copyright Business Recorder, 2026
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