Pakistan to save $3.239b through conversion of Jamshoro power plant to Thar coal

ISLAMABAD – Pakistan is poised to save $3. 239 billion over the next 26 years — and $2. 113 billion in foreign currency alone — by converting the Jamshoro power plant from imported coal to indigenous Thar coal. This was revealed by Bankable Feasibility Study (BFS), prepared by Dornier Group and EY Parthenon, which was presented to Federal Minister for Power Awais Leghari on Tuesday. The study confirms that this transformation is not only technically feasible and economically compelling but also environmentally manageable. To steer this complex initiative, the federal minister constituted a high-level steering committee, which convened 38 dedicated sessions to proactively monitor and expedite the completion of the BFS. The initiative flows directly from the Prime Minister’s Power Sector Reform Plan and reflects sustained efforts by the Ministry of Energy to advance fuel indigenisation, with the BFS marking a key milestone in that process. The project delivers a cost-benefit ratio of 1. 8x, which remains favourable across all sensitivity scenarios. Total net benefits over the 26-year project life amount to $3. 239 billion, comprising $1. 720 billion in net benefits to the power sector — including generation cost savings of $1. 051 billion and Thar mine expansion benefits of $669 million — alongside $1. 519 billion in government savings from reduced interest costs on foreign borrowings. Critically, the project generates $2. 113 billion in foreign currency savings, directly strengthening Pakistan’s balance of payments and reducing exposure to volatile international coal prices and exchange rate fluctuations. The required conversion CAPEX is estimated at $86. 2 million (with total project cost of $116. 6 million), representing a highly attractive return on investment. The BFS, prepared by the internationally renowned Dornier Group as lead technical consultant, confirms that Jamshoro Unit-01 — Pakistan’s ultra-supercritical power plant — can be converted to burn 100% Thar lignite through targeted engineering modifications rather than a large-scale boiler retrofit, thereby preserving the value of the existing plant asset. The project is structured as a bankability-led brownfield modification, with a stage-gate implementation approach that introduces no new coal capacity. Beyond the direct financial savings, the conversion carries transformative economic co-benefits for Pakistan. The shift to Thar lignite will catalyse the expansion of coal mines in Tharparkar, generating employment, accelerating infrastructure development in one of Pakistan’s most underserved regions, and deepening the country’s domestic energy supply chain. By eliminating reliance on imported coal — subject to international commodity price fluctuations, foreign exchange volatility, and supply chain disruptions — Pakistan will move decisively towards energy self-sufficiency, consistent with the Government’s broader indigenisation agenda under the Power Sector Reform Plan. With the BFS now formally presented, the Ministry of Energy (Power Division) will proceed to the implementation readiness phase. Immediate next steps include obtaining final policy approval, initiating the lender-consent workstream and loan amendment roadmap, preparing the NEPRA/TCEB/SEPA/PPRA/PPA/CSA/EPC consent and contract matrix, launching basic design tender verification — including CFD modelling, mill tests, FGD/ESP and balance-of-plant modifications, and HAZIG/HAZOP studies — and developing a comprehensive procurement and contracting strategy with appropriate interface allocation and guarantees. The government of Pakistan remains committed to the timely and bankable implementation of this landmark project, which represents a cornerstone of the national energy sector’s transition towards indigenous resources, fiscal sustainability, and long-term energy security, the spokesman for Power Division said. Three suspected robbers killed in shootout with CCD police in Chiniot

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