2 weeks Ago By Staff Report
KARACHI – The share of local coal has increased significantly in the country’s power generation, bringing a significant reduction in electricity cost. As per the report recently released by Topline Securities Limited on power generation for the month of March 2025, Pakistan’s power generation increased by 5 per cent on Year-on-Year basis and 21pc on Month-on-Month basis, to 8409 GWh in March. The share of local coal in this generation was 1393 GWh against 862 GWh in March last year, showing an increase of 62pc.
There is also an increase of 34pc on monthly basis, as its share was 1043 GWh in February this year. The share of local coal in the country’s fuel mix has also increased to 17pc in March this year, from 11pc in March last year, showing the change of 6pc on year-on-year basis. Moreover, the cost of the country’s power fuel has also witnessed a positive impact, with the increased share of locally available coal replacing foreign exchange depleting imported ones.
The fuel cost went down to Rs12.2 per unit in March this year against Rs16.8 per unit in March last year, showing the reduction of 27pc on year-on-year basis.
Similarly, there was 11pc reduction on month-on-month basis as the cost was Rs13.8 per unit in February this year. Government of Sindh’s figures state that since 2019, 27000 GWh of electricity has been generated alone from Thar Coal Block-II at a significantly lower fuel price of Rs4.
8 per kWh, compared to Rs19.5 per kWh for imported coal, which has resulted in a foreign exchange saving of approximately $1.3 billion for the country.
Thar’s coal continues to play a pivotal role in the energy security of the country and countering the energy crisis through a plausible share in power generation. Also, Thar coal’s production has continuously increased and remains one of the cheapest, cost-effective and indigenous sources of electricity and energy for Pakistan..
