Saturday August 20, 2022

Necessary switch

June 28, 2022

Coal is an important source of energy, and it has 40 per cent share in power generation worldwide. It is good to note that the government has decided to generate electricity from local coal instead of imported coal. Currently, only 660MWs is being generated from Thar coal; the government also plans to generate 3,960MWs of electricity by converting imported coal-based plant into local coal-based plants. This is a prudent decision considering the all-time high cost of imported coal that has reached up to $400 per metric ton and its pressure on our foreign exchange reserves.

Around 18.9 million tons of coal were imported by Pakistan during FY 2021. The high cost of imported coal is the main reason why average per-unit cost of coal-based electricity has swelled to over Rs18 per unit from Rs 4-5 per unit. It is fortunate that our policymakers have finally realized that reliance on imported coal is damaging for the national economy and power generation.

Usama Ghulam Rasool