Coal as Pakistan’s homegrown answer to power shortages
Pakistan faces a long-standing challenge, which is steady and affordable electricity for homes and industry.
Imported fuel makes power costly and exposes the country to price shocks and supply breaks. Turning instead to local coal resources offers a practical path to secure base load power, lower tariffs, and keep energy spending inside the country.
The Thar region holds one of the largest coal deposits in the world. Geological surveys estimate reserves of around 175 billion tonnes of lignite spread across more than 9,000 square kilometre. This is part of Pakistan’s overall coal reserves of about 186 billion tonnes as of 2024, which, if developed carefully, can supply power for centuries. Using this resource would reduce the huge outflow of foreign exchange that comes from buying imported coal and fuel.
Since 2019, Thar Block II alone has generated more than 27,000 gigawatt hours of electricity and helped the country save around 1.3 billion dollars in foreign exchange.
Local mining will also create jobs for thousands of workers, develop infrastructure in Sindh, and keep wealth circulating inside Pakistan instead of leaving the country in the form of foreign payments.
International experience shows that even countries pushing away from coal returned to it when energy was tight.
During the energy disruption after the Russia-Ukraine war, Germany increased coal use to cover gaps and protect its grid.
Poland, India, and even parts of China also expanded local coal generation to ensure that industries and households did not face........





















Toi Staff
Sabine Sterk
Gideon Levy
Penny S. Tee
Waka Ikeda
Daniel Orenstein
John Nosta
Grant Arthur Gochin