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Pakistan’s energy sector continues to face mounting challenges as rising demand, costly fuel imports, and volatile global oil prices continue to strain the economy, putting immense pressure on foreign exchange reserves. The petroleum import bill for FY2025–26 is estimated at $15-16 billion, underscoring the country’s heavy reliance on imported crude oil and petroleum products.
In this context, the development of indigenous energy resources has become essential for strengthening Pakistan’s energy security. The vast coal reserves of Tharparkar provide a reliable domestic alternative to imported fuels, helping reduce foreign exchange outflows, stabilise electricity costs, and enhance long-term energy independence.
The Sindh Engro Coal Mining Company (SECMC), Pakistan’s largest open-pit lignite coal mining company, began operations at Thar Block II in 2019, and developed the project in phases to support the country’s growing energy requirements and reduce reliance on imported fuels.
Now, the third phase of the mine’s expansion is set to commence on October 5, further increasing the mine’s capacity and expanding the use of indigenous coal. The Phase III expansion will increase the mine’s annual production capacity from 7.6 million tonnes to 11.2 million tonnes.
Under Phase I, the mine achieved commercial operations on July 10, 2019, with an annual mining capacity of 3.8 million tonnes. The coal was supplied to Engro Powergen Thar Limited (EPTL) operating two power plants with a combined generation capacity of 660MW. Phase II, which increased mining capacity to 7.6 million tonnes per annum, became operational on October 1, 2022, supplying coal to Thar Energy Limited (TEL) and ThalNova Power Thar Limited (TNPTL), each operating a 330MW power plant.
The mine in Thar Block II has supplied approximately 40 million tonnes of coal during Phase II, enabling the generation of nearly 40,000 GWh of affordable electricity from power plants with a combined installed capacity of 1,320 MW.
Energy expert Shahid Sattar, says developing Thar coal is imperative for Pakistan’s energy security. He emphasized the country cannot remain indefinitely exposed to imported fuel prices, shipping disruptions and recurring pressure on our foreign exchange reserves when we have a substantial domestic resource.
“Expanding the Thar Block II mine can provide more reliable local fuel and reduce import dependence, particularly where it replaces imported coal in existing power plants. Energy independence is valuable; affordable power which Thar promises is what makes it meaningful,” he added.
As Pakistan continues to seek greater reliance on domestic energy, Thar’s large coal reserves are expected to remain an important component of the country’s indigenous energy infrastructure, with the potential to support power generation over the coming decades, said a press release issued by the SECMC.
