Coal and Energy in Pakistan: Between Opportunity and Responsibility

Introduction: Energy Crossroads

Pakistan’s energy sector stands at a defining moment. Chronic power shortages, rising import bills, and global climate pressures have forced the country to rethink its fuel choices. Amid this transformation, coal has re-emerged as both a solution and a challenge. Tapping indigenous reserves, particularly in Sindh’s Thar coalfield, Pakistan aims to reduce reliance on imported fuels and secure affordable electricity. Yet, coal also raises urgent environmental and climate concerns for a nation already among the most climate-vulnerable in the world.

Coal Reserves and Potential

Thar coalfield (Sindh):
Among the world’s largest lignite deposits, holding 175–200 billion tonnes across 9,000 sq km.

Other deposits: Found in Punjab (Salt Range, Makarwal) and Balochistan (Duki, Khost, Chamalang), though reserves are smaller.

These resources, once neglected, are now central to Pakistan’s energy strategy.

Coal Power in Pakistan: Growth and Economics

The development of coal-fired power plants has accelerated, especially under the China-Pakistan Economic Corridor (CPEC).

Sahiwal Coal Power Plant (Punjab): 1,320 MW, commissioned 2017.

Port Qasim (Karachi): 1,320 MW, commissioned 2018.

Thar Block-I & II Projects:
Over 2,600 MW combined, with integrated coal mines.

Hub Power Plant (Balochistan): 1,320 MW, supercritical technology.

Key Statistics (March 2025)

Power generation from local coal: 1,393 GWh (62% YoY increase).

Share in national energy mix: 17%, up from 11% a year earlier.

Average fuel cost:
Rs 12.2/unit, down 27% from Rs 16.8 (due to shift from imported to local coal).

Estimated annual forex savings: $1.3 billion by replacing imported coal with Thar lignite.

Levelized Tariffs for Local Coal

1. 200 MW plant: Rs 11.4/unit

2. 600 MW plant: Rs 11.35/unit

3. 1,000 MW plant: Rs 11.28/unit

Economies of scale make larger plants more cost-effective.

Technology and Efficiency

Sub-critical plants: Widely used but less efficient.

Super-critical/ultra-supercritical: Adopted in Sahiwal, Port Qasim, and Hub, offering better fuel efficiency and lower emissions per unit.

Future potential: Integrated Gasification Combined Cycle (IGCC) and Carbon Capture & Storage (CCS)—though still expensive for Pakistan.

Environmental and Climate Concerns

1. Greenhouse Gas Emissions

Coal is the most carbon-intensive fuel. Each ton of lignite burned releases massive amounts of CO₂, worsening climate change. Globally, coal accounts for 40% of CO₂ emissions from energy.
For Pakistan—already in the top 10 most climate-vulnerable nations—this is a paradox: while coal eases today’s energy shortages, it worsens tomorrow’s climate risks.

2. Air Pollution

Coal plants emit SO₂, NOx, mercury, and PM2.5 particulates. These pollutants cause:

Respiratory and cardiac diseases
Acid rain harming crops and water
Toxic buildup in ecosystems

Pakistan’s urban centers like Lahore and Karachi, already choking under smog, face added health burdens. Medical costs and lost productivity run into billions of rupees annually.

3. Water Stress

Coal plants consume vast water for cooling. In Thar, where water is scarce, pipelines divert canal water to plants, sparking concerns for local communities and agriculture. Wastewater discharge also risks contaminating fragile desert ecosystems.

4. Land Degradation

Open-pit mining in Thar displaces villages, destroys rangelands, and threatens biodiversity. Indigenous communities lose traditional livelihoods (herding, farming), creating social tensions.

The Human Dimension

For many, coal projects mean employment, electricity, and hope. Thar coal has created over 18,000 jobs and electrified millions of homes. But the same projects have also displaced families, strained water supplies, and filled skies with smoke. This duality reflects Pakistan’s broader struggle: securing development without sacrificing the environment.

Global Context

Coal’s decline in developed countries: The EU, US, and Japan are cutting coal due to climate commitments.

Coal’s resilience in Asia & Africa: Nations like India, China, and South Africa still rely on coal for affordability and energy security.

Pakistan’s balancing act: While investing in coal, it has also pledged to increase renewables to 30% of its energy mix by 2030, alongside hydropower and nuclear.

Future Prospects: From Coal to Clean

Pakistan’s roadmap envisions coal as a transitional fuel, not the destination.

Planned Steps

1. Gradually hybridizing coal plants with biomass and solar.

2. Expanding solar (Sindh, Balochistan deserts) and wind (Jhimpir, Gharo corridor)—potential of 100,000 MW.

3. Scaling up hydropower and nuclear as baseload clean sources.

4. Policy push: Transition Chinese-operated plants from imported coal to Thar lignite, saving foreign reserves.

5. International support: Pakistan seeks financing for clean energy under the Paris Climate Agreement and climate loss-and-damage frameworks.

Conclusion: A Delicate Balance

Coal has given Pakistan breathing space—providing cheap, reliable energy and reducing dependence on costly imports. But it comes with a heavy price: rising GHG emissions, polluted air, water stress, and land degradation.

For a nation battered by floods, heatwaves, and droughts, continuing down a coal-heavy path risks deepening its climate vulnerabilities.

The challenge is not whether coal has a role—it clearly does—but how quickly Pakistan can transition beyond it. True energy security lies not just in megawatts, but in sustainability, resilience, and justice for communities and future generations.

Coal may fuel the present, but clean energy must power the future.


References

Pakistan Bureau of Statistics (PBS) Energy Data 2025
The Express Tribune, April 2025
Pakistan Today Profit, 2025
Energy Update, 2025
Reuters, 2024–25

[World Bank & UNDP Climate Reports on Pakistan]

Leave a Comment

Your email address will not be published. Required fields are marked *