Thar Coal rail link set to boost energy security

KARACHI: Pakistan is moving ahead with a major 105-kilometre rail connectivity project meant to link the country’s vast Thar coal reserves with the national railway network, a development expected to improve the transportation of locally produced coal, reduce logistics costs and strengthen the country’s energy security. The project is being pursued under the vision of Prime Minister Muhammad Shehbaz Sharif. Federal Minister for Railways Muhammad Hanif Abbasi is making all efforts to advance the initiative and strengthen Pakistan Railways’ freight operations, Pakistan Railways statement said here on Thursday. The proposed Thar Coal Rail Connectivity project will provide a dedicated rail link to facilitate the transportation of coal from the Thar coalfields to power plants and other potential users through the country’s railway network. Officials and project proponents say the rail connection will make the movement of Thar coal more efficient and cost-effective, helping reduce reliance on imported coal and potentially saving the country billions of dollars annually in foreign exchange. The development assumes added significance at a time when Pakistan is seeking to reduce its dependence on imported energy and make greater use of indigenous resources to meet its growing power and industrial requirements. The rail-based transportation of coal is also expected to provide a more efficient alternative for moving large volumes of bulk cargo over long distances, while strengthening Pakistan Railways’ role in the national freight and logistics system. The project is therefore being viewed not merely as a railway infrastructure initiative but as part of a broader strategy to integrate domestic mineral resources with the country’s energy and transport infrastructure. By connecting Thar’s coalfields with the national rail network, the project could create a more reliable supply chain for coal-based power generation and other industrial uses, while lowering transportation costs and improving the competitiveness of locally sourced coal. The initiative is also expected to contribute to the wider objective of reducing pressure on foreign exchange reserves by substituting a portion of imported coal with domestically available resources. The development of the rail link could further enhance the economic potential of the Thar region by improving connectivity between the coalfields and major consumption centres, while creating opportunities for expanded freight operations and associated economic activity. For Pakistan Railways, the project represents an opportunity to increase its share in bulk freight transportation and generate additional revenue by expanding its freight network and services. The government has increasingly emphasised the need to transform Pakistan Railways into a more efficient and commercially viable transport organisation, with greater focus on freight services, modern infrastructure and improved connectivity. The Thar Coal Rail Connectivity project fits into that broader strategy by linking a major indigenous energy resource with the country’s existing transportation infrastructure. Supporters of the initiative say its long-term impact could extend beyond the immediate transportation of coal, contributing to energy security, import substitution, industrial development and more effective utilisation of Pakistan’s domestic resources. The project is consequently being presented as a significant step towards reducing the country’s dependence on imported fuel, conserving foreign exchange and strengthening the national freight system. The government says the initiative reflects its broader policy of making greater use of indigenous resources while modernising railway infrastructure to support economic growth. Copyright Business Recorder, 2026

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