Pakistan moves to convert three imported coal power plants to local fuel

This picture taken on May 23, 2018 shows a general view of a Chinese-backed power plant under construction in Islamkot in the desert in the Tharparkar district of Pakistan's southern Sindh province. (AFP)
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Updated 30 August 2024
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Pakistan moves to convert three imported coal power plants to local fuel

  • Government sets up four-member committee to provide recommendations on switching Chinese power plants to using Thar coal
  • Energy ministry said last year Pakistan planned to quadruple its domestic coal-fired capacity, would not build new gas-fired plants

ISLAMABAD: Pakistan’s ministry for energy this week set up a four-member committee to provide recommendations so Chinese power plants operating in the country can be shifted to coal from Pakistan’s Thar region rather than imported coal.

Neighboring China has set up over $20 billion worth of energy projects in Pakistan under the China-Pakistan Economic Corridor (CPEC). Three coal-fired power plants of 1,320 megawatts each have been set up under CPEC, one in Sahiwal in 2017, another in Port Qasim in Karachi in 2018, and the third one in Balochistan’s Hub in 2019. All three run on imported coal, which costs over $1.5 billion per annum, according to a National University of Sciences & Technology study published this year.

The cost of electricity generated through imported coal stands at Rs20.02 per kilowatthour as opposed to indigenous coal at Rs14.19/kWh.

Pakistan, a country of more than 240 million people, depends chiefly on natural gas to produce electricity, but has been looking to boost coal-fired output to save costs. The country, with a total installed electricity generation capacity of approximately 41,268 megawatts, relies heavily on imported fuels, including on Regasified Liquefied Natural Gas (RLNG), coal and furnace oil, which account for nearly 47 percent of its power generation mix.

“The Federal Ministry for Energy (Power Division) has been pleased to constitute the following committee for conversion of 03 imported coal based IPPs [independent power producers] to Thar coal, developed under China-Pakistan Economic Corridor (CPEC) framework,” the ministry said in a notification dated Aug. 28.

The committee led by the additional secretary of the power division will prepare technical and financial feasibility studies for the conversion of the plants to Thar coal. It will also “look into the logistics for transportation of coal from Thar mines to projects’ sites” and provide “recommendations, way forward and implementation plan [if feasible]” to the government.

Last February, the energy ministry said Pakistan planned to quadruple its domestic coal-fired capacity to reduce power generation costs and would not build new gas-fired plants in the coming years.

The transition could save Pakistan more than Rs200 billion a year in imports, translating to a decrease of as much as Rs2.5 per unit in the price of electricity, Awais Leghari, head of the energy ministry’s Power Division, said in an interview last month. The energy ministry told Arab News it did not have updated data on coal imports.

Energy experts said while it was feasible to convert the imported coal-fired power plants, it would take two to three years due to a lack of local coal.

“The electricity cost can be reduced by half by switching the imported coal power plants to the local fuel, but this cannot be done instantly,” Farhan Mahmood, head of research at Sherman Securities in Karachi, told Arab News.

He said local coal would cost around $50 per ton while imported coal was around $120 per ton, though the imported coal was of higher grade and efficiency, with comparatively less carbon emissions.

Mahmood said Pakistan was mining around 7.6 million tons of coal per annum from Thar and planning to boost it to 11 million tons in up to three years.

“We will have to first boost our mining capacity and quantity to meet the fuel demand of the power plants,” he said. “There is a dire need to enhance our local coal share in the energy mix to bring down the electricity prices and cut the import bill.”

Exorbitant power bills have led to street protests in Pakistan in recent months and calls to review contracts with IPPs, which produce expensive electricity.

Pakistan has been trying to cut down on the use of furnace oil for power generation and to boost natural gas-fired electricity production.


Saudi Arabia offers 15% investment in Pakistan’s Reko Diq mining venture

Updated 17 sec ago
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Saudi Arabia offers 15% investment in Pakistan’s Reko Diq mining venture

  • Reko Diq in Pakistan’s southwest is considered one of the world’s largest undeveloped copper and gold resources
  • State-owned media says Pakistan expects up to $5 billion of Saudi investment in mining, agriculture by June 2025

ISLAMABAD: Saudi Arabia has offered a 15 percent investment in the Reko Diq copper and gold mine project in Pakistan’s southwestern Balochistan province, according to Pakistani state-owned media on Saturday.
Reko Diq is considered one of the world’s largest undeveloped copper and gold resources, primarily operated by Canada’s Barrick Gold, which holds a 50 percent stake in it.
The remaining stake is owned by three federal state-owned enterprises and the Balochistan provincial government, though Pakistan has also invited Saudi Arabia to invest in the project.
“Saudi Arabia has offered fifteen percent investment in Reko Diq Mining project,” the Radio Pakistan said in one of its reports. “The Kingdom has also offered grants to build road infrastructure around the Reko Diq project.”
“Special Investment Facilitation Council (SIFC) has approved the structure of the offer but the final decision has been left to the Cabinet Committee on Intergovernmental Transactions,” it added.
Pakistan set up the SIFC, a civil-military hybrid body, last year in June with the sole purpose of reviving the frail national economy, dented by low foreign exchange reserves, currency depreciation and record inflation.
Barrick Gold’s top official, Mark Bristow, has also acknowledged the Saudi interest in the project, saying his company would not dilute its equity.
However, he added that Barrick Gold would not oppose any decision by the Pakistan government to sell part of its stake to Saudia Arabia.
Radio Pakistan said the government in Islamabad expects up to $5 billion investment in the mining and agriculture sector by June next year.


Pakistan calls US sanctions on firms allegedly aiding missile program ‘politically motivated’

Updated 30 min 44 sec ago
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Pakistan calls US sanctions on firms allegedly aiding missile program ‘politically motivated’

  • US sanctioned a Chinese institute, other companies this week after accusing them of helping Pakistan
  • China says it opposes such unilateral sanctions, vows to protect interests of its citizens and companies

ISLAMABAD: Pakistan on Saturday criticized the recent decision by the United States to impose sanctions on commercial entities accused of aiding Pakistan’s ballistic missile program, calling it “biased and politically motivated.”
The US imposed the sanctions on a Chinese research institute and several companies on Thursday, alleging they had supplied missile-applicable items to Pakistan.
State Department Spokesperson Matthew Miller said in a statement the Beijing Research Institute of Automation for Machine Building Industry had collaborated with Pakistan to procure equipment for testing rocket motors for the Shaheen-3 and Ababeel systems, and potentially for larger systems.
He maintained that the US decision reflected its commitment to “act against proliferation and associated procurement activities of concern, wherever they occur.”
“Pakistan considers this action as biased and politically-motivated,” Foreign Office Spokesperson Mumtaz Zahra Baloch said in response to media queries related to the development. “Similar listings of commercial entities in the past were based on mere suspicion [and] involved items not listed under any export control regime and yet were considered sensitive under broad, catch-all provisions.”
The administration in Washington had also targeted three China-based companies with sanctions last year in October on similar grounds.
“It is widely known that some countries, while claiming strict adherence to nonproliferation norms, have conveniently waived licensing requirements for advanced military technologies to their favored states,” Baloch continued.
“Such double standards and discriminatory practices undermine the credibility of global nonproliferation regimes, increase military asymmetries, and endanger international peace and security,” she added.
China has already said it will “firmly protect” the rights and interests of Chinese companies and individuals.
One of its diplomats in Washington said this week his country “opposes unilateral sanctions and long-arm jurisdiction that have no basis in international law or authorization of the UN Security Council.”
With input from Reuters


Pakistan fall 2-1 to India in final pool match at Asian Hockey Champions Trophy

Updated 14 September 2024
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Pakistan fall 2-1 to India in final pool match at Asian Hockey Champions Trophy

  • The Green Shirts had already qualified for the semifinal of the tournament in China before facing India
  • Pakistan were unbeaten until today, winning 5-1 against China to secure second spot on the points table

ISLAMABAD: Pakistan’s national hockey team suffered a 2-1 defeat in the last pool match against India on Saturday at the Asian Hockey Champions Trophy 2024 at the Moqi Hockey Training Base in Hulunbuir, China.
The two traditional rivals played with determination, with Pakistan securing an early advantage when Ahmad Nadeem netted a field goal, putting India under pressure.
However, the momentum shifted when the rival team responded with two consecutive goals in the first half, securing a lead they maintained until the final whistle.
“What a game,” Hockey India proclaimed on social media platform X. “India vs Pakistan lived up to the hype with non-stop action and intense rivalry!”

 
The Asian Hockey Federation also confirmed the 2-1 score in India’s favor toward the end of the match.
 
The Pakistan team had already secured a spot in the semifinals before facing India.
The Green Shirts remained unbeaten until today’s match, having secured a 5-1 victory against hosts China on Thursday, which moved them to second place on the points table.
“It is a collective team effort, we are learning by each match,” Hannan Shahid, who was named “hero” of Thursday’s match, said after the win.
Shahid said his side conceded too many cards in the start of the tournament, but had overcome it.
“Hero of the team award is a result of my team’s effort, they created chances for me to score and I am happy how we have progressed in the tournament,” he added.
Others who scored goals for Pakistan included Rehman Abdul and Ahmad Nadeem, while Jiesheng Gao scored the only goal for China.


Trump paid no ‘heed’ to Imran Khan’s imprisonment, Pakistani-American aide says

Updated 14 September 2024
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Trump paid no ‘heed’ to Imran Khan’s imprisonment, Pakistani-American aide says

  • Trump aide Sajid Tarar says some Pakistani-Americans conveying through social media that Trump could push for Khan’s release if elected, but there is ‘no truth to it’
  • Khan and his PTI party have waged an unprecedented campaign of defiance against Pakistan’s military and now the PTI is aiming to mobilize public for Khan’s release

ISLAMABAD: Sajid Tarar, a Pakistani-American businessman and close aide to Donald Trump, said on Friday that a few Pakistani-Americans had tried to discuss former prime minister Imran Khan’s imprisonment and local Pakistani politics with the US presidential nominee at a recent fundraiser, but Trump “did not pay any heed to it.”
Khan, who is in jail since last August, was ousted from the PM’s office in 2022 in a parliamentary vote of no confidence after what is widely believed to be a falling out with Pakistan’s powerful military, which denies being involved in politics.
Since his removal, Khan and his party have waged an unprecedented campaign of defiance against the military and now his Pakistan Tehreek-e-Insaf (PTI) party is aiming to mobilize the public through rallies for its leader’s release from jail in “politically motivated” cases.
Tarar, who lives in Maryland and met Trump through his lawyer in 2016, is one of 136 members of Trump’s finance team and is believed to be instrumental in raising funds and organizing election campaigns for the former president across the US.
In an interview with Arab News, the Trump aide said some Pakistani-Americans had been conveying through social media that the US presidential nominee could push for Khan’s release if he was elected, but there was “no truth to it.”
“Even if Trump wins, obviously, he won’t be interfering in Pakistan’s judicial system to get Imran Khan released,” Tarar, who moved to the US from Pakistan’s Mandi Bahauddin district to study law some 36 years ago, told Arab News over the phone.
“Some Pakistani-Americans have been pedaling this thing on social media, but there is no truth to it that President Trump would interfere in local Pakistani politics.”
Tarar stressed that Trump had a relationship with the prime minister of Pakistan during his tenure in the office and not with an individual, referring to Khan’s meeting with Trump in the White House in July 2019.
“Representatives of different political parties in Pakistan, including the PTI, have approached me to lobby and meet Trump, but this has not materialized yet,” he added.

This file photo, posted on January 7, 2018, shows Sajid Tarar (right), a Pakistani-American businessman and close aide to former US president Donald Trump, during an event in Washington. (Photo courtesy: Facebook/Sajid Tarar)

Trump is facing Democratic nominee and US Vice President Kamala Harris in the presidential election due to be held on November 5, with both candidates struggling to get maximum support of all communities, including Pakistani and Muslim diaspora, in the upcoming elections.
Tarar claimed that a majority of Muslim population in the US supported the Republican nominee in the upcoming presidential election, following the failure of President Joe Biden’s administration to have a ceasefire in Gaza.
“The majority of Muslim voters, including the Pakistani diaspora in the US, has been aligning with Trump after the Biden administration’s failure to manage a ceasefire in Gaza,” he said.
Muslims in America have been visibly divided between Republican and Democratic camps ahead of the presidential election in November. Historically, majority of American Muslims have voted for the Democrats, but this time they appear to be leaning toward Republican nominee Trump.
The US presidential election campaign is currently at its peak and both candidates are struggling to woo voters, promising different reforms and policies, according to Tarar. Some 17 percent Muslims voted for Trump in the previous election, but this is going to be more than 50 precent in this election.
The Pakistani-American aide is currently in California for Trump’s fundraising and has been mobilizing Muslim communities, including 0.7 million Pakistanis, in the US. He believes Pakistan-US diplomatic and defense relations would improve under the Trump administration, which will bring peace and stability to the region and the world.
“Pakistan being next to China and Afghanistan cannot be ignored at all [by the US] as the Trump administration will be fully focusing on terrorism eradication and stability in the region,” the aide said.


Roadside bomb kills two policemen in Pakistan’s volatile southwest

Updated 14 September 2024
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Roadside bomb kills two policemen in Pakistan’s volatile southwest

  • Pakistan’s largest province of Balochistan, which borders Iran and Afghanistan, has been the site of a decades-long insurgency by Baloch separatists
  • Separatist militants last month hit several civil and military targets in a string of coordinated attacks in Balochistan, killing more than 50 people

QUETTA: A roadside bomb killed two policemen in Pakistan’s southwestern Balochistan province on Saturday, police said, amid a surge in militant attacks in the restive region.
An improvised explosive device (IED) targeted a police vehicle in Kuchlak area on the outskirts of the provincial capital of Quetta, according to Senior Superintendent of Police (SSP) Muhammad Baloch.
“One policeman was killed and another injured in the latest attack,” SSP Baloch told Arab News, later confirming that the injured policeman had also succumbed to his wounds.
Pakistan’s largest province of Balochistan, which borders Iran and Afghanistan and is home to major China-led projects such as a strategic port and a gold and copper mine, has been the site of a decades-long separatist insurgency by ethnic Baloch militants.
Last month, separatist militants hit several civil and military targets in a string of coordinated attacks in Balochistan, killing more than 50 people. The attacks prompted Pakistani military to gun down a dozen militants in separate operations in the province.
The separatists accuse the central government of exploiting Balochistan’s mineral and gas resources. The Pakistani state denies the allegation and says it is working to uplift the region through development initiatives.