Pakistan Shifts to Domestic Coal to Alleviate Energy Sector Debt

Pakistan plans to transition Chinese-operated power plants to use coal from its Thar region instead of imported coal. This move aims to reduce costs and ease foreign exchange pressures. Discussions with China over re-profiling energy sector debt are planned during an upcoming visit to Beijing. Structural reforms to address the power sector's issues are also underway.

Pakistan is seeking to shift Chinese power plants in the country to domestic coal from the Thar region, according to the energy minister Awais Leghari.

Leghari, part of a delegation visiting Beijing, said the move aims to cut import costs and ease foreign exchange pressure, benefitting both countries' interests.

Additionally, the transition could save Pakistan approximately 200 billion Pakistani rupees per year, significantly impacting energy pricing and reducing circular debt.

(With inputs from agencies.)