Costly coal-fired power agreements: Pakistan risks remaining trapped

Experts at an Islamabad policy dialogue warned on Wednesday that Pakistan’s coal power contracts could worsen financial pressure on the electricity system as more consumers turn to rooftop solar. Business Recorder reported that lower grid use, fixed capacity payments and outstanding contractual commitments were central concerns.

Participants disagreed over whether imported-coal plants should be retired early with international financing or converted to Thar coal. Renewables First’s Muhammad Basit Gauri said cheaper solar was weakening the case for imported coal and that early retirement negotiations could avoid future capacity costs; the Private Power and Infrastructure Board’s Ali Nawaz Leghari argued that Thar coal could reduce fuel imports and support supply when renewable generation is unavailable. Speakers also called for credible investor protections, worker transition plans and policies to address declining grid sales.