Advertisement
Categories: BusinessNewsPakistan

Pakistan to Push Chinese Power Plants to Use Local Coal, Cut Energy Costs

Advertisement

Pakistan is urging Chinese independent power producers (IPPs) that currently rely on imported coal to switch to locally sourced coal to reduce generation costs and provide relief to consumers burdened by high utility bills.

Pakistan this month will ask Chinese power plants operating in the country to shift to using coal from the Thar region rather than imported coal,” Federal Minister for Energy (Power Division) Awais Leghari told Reuters on Sunday.

Leghari noted that this transition could save Pakistan over Rs200 billion annually in imports, leading to a reduction of up to Rs2.5 per unit in electricity prices.

“Islamabad may also begin talks on re-profiling Pakistan’s energy sector debt during the visit to Beijing,” he added.

 

This shift would benefit the Chinese-owned plants in Pakistan by easing pressure on the country’s foreign exchange reserves, facilitating the repatriation of dividends, and offering a better return in dollar terms.

The power minister will be part of a delegation discussing structural reforms to the power sector, as suggested by the International Monetary Fund (IMF), which recently agreed on a $7 billion bailout for the heavily indebted South Asian nation.

Neighboring China has invested over $20 billion in energy projects in Pakistan.

One of the key purposes of this trip is the conversion of our imported coal units to local coal. That would have a huge impact on the cost of energy and power in the near future. So, this is one of the main items on the agenda,” Leghari said in an interview.

In April, a subsidiary of conglomerate Engro agreed to sell all of its thermal assets, including Pakistan’s leading coal producer, Sindh Engro Coal Mining, to Liberty Power. Liberty cited Pakistan’s foreign exchange crunch and its indigenous coal reserve potential as reasons for the decision.

Leghari declined to elaborate on the possible talks with China regarding re-profiling energy debt.

Advertisement
News Desk

Recent Posts

Vice President Vance joins Jake Paul for US Women’s Hockey Win

Vice President JD Vance sat with his family and boxing champion Jake Paul for a…

16 minutes ago

Religious Leaders Form Coalition for National Peace

ISLAMABAD: In a solemn press conference held by Hafiz Tahir Mahmood Ashrafi, Coordinator of the…

22 minutes ago

India Accused of Funding Afghan Mosque Attack

Pakistani Interior Minister Mohsin Naqvi has accused India of directly funding and orchestrating a recent…

32 minutes ago

Bad Bunny set to headline Super Bowl halftime, ahead of potential personal life rumors

The musical landscape is about to be shaken by the return of Bad Bunny, one…

41 minutes ago

PCB denies ICC talk claims over Indian T20 World Cup boycott

Pakistan Cricket Board (PCB) issued a strong denial today to claims circulating in Indian media…

48 minutes ago

Angry mob lynch suspected robber in Karachi’s Korangi

In the heart of Korangi, an act of vigilante justice claimed yet another life in…

57 minutes ago