Thar coal, renewables make Sindh energy basket of Pakistan: CM Murad

KARACHI: With one of the largest indigenous coal reserves in Thar and significant renewable energy potential, Sindh is the energy basket of Pakistan and can lead national progress through its diverse energy sources.

Speaking at the Sindh Energy Diversity Conference organized by Energy Update in collaboration with the Government of Sindh, Syed Murad Ali Shah, Chief Minister Sindh, highlighted that Thar’s coal deposits are equivalent to the energy reserves of Saudi Arabia, Iran and Kuwait.

Chief Minister Shah shared that the Thar coal project was initially conceived in the 1990s under the leadership of Shaheed Mohtarma Benazir Bhutto and was eventually realized through one of the most successful public-private partnerships of Sindh Engro Coal Mining Company (SECMC) in Thar Block II. This pioneering initiative disproved the myth that Thar coal, being lower-grade lignite, cannot be used to produce electricity.

He added that Thar coal is now generating 1320MW of low-cost electricity in Block-II, powering households and industries across Pakistan. Moreover, an inclusive development approach has been followed, where almost every household in Thar Block-II is now solarized in line with PPP Chairman Bilawal Bhutto Zardari’s vision that the people of Thar must benefit first from this progress.

Nasir Hussain Shah, Sindh Minister for Energy and Planning & Development, pointed out that coal gasification plans are underway to expand Thar coal utilization to other key sectors, such as fertilizer and cement, which will reduce pressure on foreign exchange reserves. Higher domestic production of fertilizers will help ensure an abundant and affordable supply of urea for farmers, ensuring greater food security for Pakistan.

The Sindh government remains focused on supporting industries and delivering solar home systems to underserved communities, Minister Nasir said.

Commending the Government of Sindh for its continued support, Amir Iqbal, CEO of SECMC, said that the Thar Block-II development served as a proof of concept and successfully marked six years of commercial operations on July 10 this year. He noted that “SECMC supplies coal to three Independent Power Producers (IPPs), energizing over 3 million households and contributing to foreign exchange savings of around US$1.6 billion since inception. These plants consistently rank among the highest on the merit order, reaffirming Thar coal as the most cost-effective baseload fuel.”

Amir added that Phase-III mine expansion is underway to make coal even cheaper and add another 660 MW power plant based on Thar coal. He also highlighted SECMC’s community investments of providing quality education to over 5000 students with 35% female enrolment, free healthcare access to more than 350,000 patients since inception, and support for the Government of Sindh’s solarization efforts covering 3,150 households in Thar Block-II.

Copyright Business Recorder, 2025