ISLAMABAD: Pakistan and China’s Shaanxi Coal and Chemical Industry Group are exploring joint ventures and investment opportunities in coal technology to manufacture chemicals from Pakistan’s coal reserves in Sindh, according to the Pakistani Petroleum Ministry.
This development follows Petroleum Minister Dr. Musadik Malik’s visit to Xi’an, China, where he met with representatives from the Chinese coal firm. During the visit, Dr. Malik highlighted Pakistan’s commitment to maximizing the use of its coal resources, emphasizing the country’s vast reserves. The visit focused on enhancing bilateral cooperation, with discussions centered around potential partnerships in the coal sector.
Representatives from Pakistan’s Thar Coal Board, Sindh Engro Coal Mining Company, and the Sindh Energy Department also participated in the discussions.
Pakistan currently extracts around 7.6 million tons of coal annually from the Thar region, with plans to increase this to 11 million tons within the next three years. The country is seeking to expand coal-fired power generation to reduce energy costs, as it faces economic challenges, including high inflation and a balance of payments crisis.
In August 2024, Pakistan’s energy ministry formed a four-member committee to explore the possibility of shifting three Chinese power plants in Sahiwal, Karachi, and Hub from imported coal to local Thar coal. This move is aimed at reducing reliance on imported energy sources and cutting power generation costs.
