Pakistan’s Power Division has launched reforms in Thar coal mining to cut costs and boost efficiency. Officials estimate annual savings of $25–30 million.
The Thar coal project, part of the China-Pakistan Economic Corridor (CPEC), aims to improve energy security and reduce reliance on imported fuels.
Prime Minister Shehbaz Sharif and Federal Minister for Power Sardar Awais Ahmed Khan Leghari directed the reforms to address diesel dependency and mining challenges.
Daily diesel savings could reach Rs25 million. Coal production costs may drop by $0.7 per ton, making electricity cheaper. Diesel-based power generation costs could fall from 33 cents per kilowatt-hour to 13 cents—a reduction of over 60%.
Previously, dewatering during mining consumed 35,000 liters of diesel daily. Total daily diesel use ranged from 200,000 to 250,000 liters. The new plan connects mining operations to the grid with a Rs 5.3 billion investment. The 132kV connection from Islamkot Grid Station will supply 60 megawatts to the sites.
The reforms will also cut about 80,000 tons of carbon emissions annually. Diesel-powered vehicles will gradually switch to electric systems, improving efficiency and supporting decarbonization.
The Power Division says the reforms will reduce operational costs, increase efficiency, and help Pakistan cope with global energy challenges.
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