Pakistan is expected to save $3.239 billion over the next 26 years by converting the Jamshoro Unit-01 power plant from imported coal to 100% indigenous Thar lignite. Of this amount, $2.113 billion will be saved in foreign exchange, reducing pressure on the country’s balance of payments.
According to the Power Division, a Bankable Feasibility Study prepared by Dornier Group and EY Parthenon confirmed that the conversion is technically feasible, economically beneficial, and environmentally manageable.
The project aligns with the government’s power sector reform plan aimed at increasing the use of local energy resources.
The economic benefits are significant, with a cost-benefit ratio of 1.8x and total project costs estimated at $116.6 million.
The conversion will lower electricity generation costs, reduce reliance on imported coal, and protect Pakistan from global fuel price fluctuations and exchange rate volatility.
Besides financial savings, the shift to Thar lignite is expected to boost coal mining in Tharparkar, create jobs, and improve infrastructure in the region.
The Ministry of Energy will now move toward implementation, including approvals, technical design, and procurement planning.ERMD
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