ISLAMABAD: Pakistan is shifting coal mining operations in its Thar region from diesel to grid electricity in a move expected to save $25–30 million annually and reduce power generation costs, the Power Division said on Wednesday.
The reform comes as Pakistan seeks to cut fuel import costs and improve efficiency in its energy sector amid rising global energy pressures and foreign exchange constraints.
The Power Division said the initiative would significantly reduce reliance on imported diesel used in mining operations, lowering both production costs and electricity tariffs.
“This initiative is projected to deliver substantial national savings by drastically reducing diesel consumption, thereby cutting import bills and lowering electricity costs,” it said in a statement.
The reform is expected to save around 25 million rupees ($89,000) per day in diesel costs, while reducing coal production costs by approximately $0.7 per ton.
