Thar Block-II expansion to begin on Oct 5

Work on the third phase of the Thar Block-II mine expansion is set to begin on October 5, Express Tribune reported. Once complete, the phase will raise the annual production capacity of the Tharparkar lignite mine from 7.6 million tonnes to 11.2 million tonnes. The expansion is being carried out by Sindh Engro Coal Mining Company, which started operations at the block in 2019.

The report places the expansion against a wider energy squeeze, where higher consumption, costlier fuel purchases abroad and unstable crude prices are weighing on foreign exchange reserves. Petroleum imports are expected to cost between $15-16 billion in FY2025-26, a figure that underlines the country's dependence on foreign crude and fuel products. Coal from Tharparkar is presented as a domestic alternative that can ease foreign exchange outflows and help keep electricity costs steadier.