Pakistan to Save $3.2B in Landmark Shift to Thar Coal at Jamshoro Plant


**ISLAMABAD** — In a major step toward energy self-sufficiency, Pakistan is set to save over $3.239 billion over the next 26 years by converting its Jamshoro Unit-01 power plant from imported coal to 100% indigenous Thar lignite.

A comprehensive Bankable Feasibility Study (BFS), conducted by the Dornier Group and EY Parthenon, was presented to Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Tuesday. The study confirms that the transition is technically viable, economically highly beneficial, and environmentally manageable.

### Massive Dollar Savings

The economic drivers behind the conversion are substantial. The initiative is projected to deliver $2.113 billion in foreign currency savings alone, significantly easing pressure on Pakistan’s balance of payments and shielding the country from volatile international commodity prices.

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Total Project Value over 26 Years: $3.239 Billion

├── Foreign Currency Savings: $2.113 Billion

└── Net Power Sector Benefits: $1.720 Billion

    ├── Generation Cost Savings: $1.051 Billion

    └── Thar Mine Expansion Benefits: $669 Million


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The conversion requires an estimated capital expenditure (CAPEX) of $86.2 million, with the total project cost landing at $116.6 million. Financial analysts noted the project boasts a highly favorable 1.8x cost-benefit ratio that holds up under various market stress tests. Additionally, the government expects to save $1.519 billion from reduced interest costs on foreign borrowings.

### Smart Engineering, No New Capacity

Crucially, lead technical consultant Dornier Group confirmed that the ultra-supercritical Jamshoro Unit-01 can handle 100% Thar coal through targeted engineering modifications rather than a costly, large-scale boiler retrofit.

Because it is structured as a brownfield modification, the upgrade introduces **no new coal capacity** to the national grid, focusing instead on optimizing existing infrastructure.

> **Key Takeaway:** The shift to local Thar lignite will catalyze mine expansions in Tharparkar, generating jobs and boosting infrastructure in one of Sindh's most underserved regions.

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### High-Level Push for Reform

The project stems directly from the Prime Minister’s Power Sector Reform Plan. To pull off the complex transition, a high-level steering committee—comprising officials from K-Electric (KE), Jamshoro Power Company Limited (JPCL), and the Private Power and Infrastructure Board (PPIB)—met 38 times to fast-track the feasibility study. Minister Leghari personally chaired 15 of those sessions.

### Next Steps to Implementation

With the feasibility study approved, the Ministry of Energy is moving immediately into the implementation phase. The upcoming roadmap includes:

 * Securing final policy and lender consents.

 * Amending existing loan roadmaps.

 * Finalizing the regulatory contract matrix with NEPRA and environmental authorities.

 * Launching basic design tenders, including detailed boiler modeling and mill tests.