Federal Minister for Energy Owais Laghari has stated that they will instruct Chinese power plants to use Thar coal instead of imported coal.
He emphasized that using Thar coal will significantly impact energy and electricity prices.
In an interview with a foreign news agency, Laghari mentioned that telling Chinese power plants to use Thar coal instead of imported coal will have a substantial effect on energy and electricity prices.
This shift will reduce pressure on Pakistan’s foreign exchange reserves and benefit Chinese power plants operating here.Gohar Ejaz noted that the government is currently purchasing electricity from some power plants at 750 rupees per unit.
Laghari added that this approach will facilitate easier profit repatriation, with better profit offers in dollars. Pakistan could save over 20 billion rupees annually on imports.
The Federal Minister for Energy also stated that they are introducing structural reforms to reduce the annual circular debt of 100 billion rupees, and discussions on re-profiling energy loans with China may take place in Beijing later this month.