When imported energy becomes the risk

Business Recorder argues in an opinion piece that Pakistan's real energy problem lies in its exposure to imported fuel prices, supply disruptions and geopolitical events. Higher international oil and fuel costs push up the petroleum import bill, which was around 16.9 billion for FY26. Coal-fired plants totaling around 5,280MW also run partly or entirely on imported coal, adding freight and exchange-rate risk.

The Phase III expansion of the Thar Block II lignite mine, run by Sindh Engro Coal Mining Company, begins with this expansion, lifting annual output capacity to 11.2 million tonnes. The mine started commercial operations in 2019 at 3.8 million tonnes a year, and Phase II doubled that to 7.6 million tonnes in 2022. Over seven years, Thar Block II has delivered roughly 38.7 million tonnes of coal, supporting close to 38,500GWh of power from plants with 1,320MW of installed capacity.

SECMS estimates the output could supply nearly three million homes daily. The company also estimates indigenous coal has saved about USD1.7 billion of foreign currency. The levelised mine tariff fell from USD47.92 per tonne at Phase I COD to about USD36.7 at Phase II, while the Phase III contract-stage tariff was set at USD32.01 per tonne. The argument favours using home-grown fuel where replacing imports is practical and cost-effective, rather than shifting the entire energy mix toward coal.