In an effort to reduce escalating energy costs, the government has established a special committee to oversee the conversion of three major Independent Power Producers (IPPs), currently operating on imported coal, to local Thar coal. The targeted plants—Sahiwal, Port Qasim, and Hub—have a combined capacity of 3,960 MWs and are key components of the China-Pakistan Economic Corridor (CPEC).
The shift to Thar coal is expected to leverage the region’s vast coal reserves, significantly reducing reliance on expensive imported coal. This conversion is seen as a critical step toward alleviating financial pressures and supporting broader reforms aimed at lowering electricity prices and enhancing energy efficiency. Each of the three IPPs has a capacity of 1,320 MWs.
The federal minister for energy (Power Division) has formed a committee to lead this initiative, headed by the Additional Secretary-I of the Power Division. The committee includes key figures such as Ali Nawaz, Director General (Thermal) at the Private Power and Infrastructure Board (PPIB), and private sector experts Shamsuddin Sheikh and Shahab Qadir, the Chief Strategy Officer of K-Electric.
The committee’s primary objective is to collaborate with IPPs and other stakeholders to develop joint, bankable technical and financial feasibility studies for the conversion. A significant challenge they face is the logistics of transporting coal from Thar mines to the project sites, requiring innovative solutions to ensure cost-effectiveness and efficiency.
In addition to conducting feasibility studies, the committee is tasked with reviewing and finalizing these studies and providing the government with clear recommendations and an implementation plan if the conversion proves feasible. The findings will be reported to the Secretary of the Power Division, who may involve other relevant organizations and departments as needed.
