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In a strategic move to cut energy costs and enhance efficiency, China has approved the conversion of three major coal-fired power plants in Pakistan from imported to local coal. This significant decision is expected to have a substantial impact on Pakistan’s energy sector.
The power plants involved in this conversion are the 1,320 MW Sahiwal Coal Power Plant, the 1,320 MW Hub Power Plant, and the 1,320 MW Port Qasim Power Plant. These plants are known for producing some of Pakistan’s most costly electricity due to their reliance on imported coal.
The agreement was facilitated by Pakistani Finance Minister Muhammad Aurangzeb and Energy Minister Owais Leghari, who are currently in China. The positive response from the Chinese delegation regarding the re-profiling of these plants highlights the strong bilateral cooperation between the two nations.
The conversion to local coal aims to reduce the overall cost of electricity production and improve energy efficiency. The move aligns with broader efforts to lower energy costs and boost sustainability in Pakistan’s power sector.
In addition to the coal conversion, the discussions between Pakistani and Chinese officials also addressed the future steps needed to advance this process. Chinese officials have also pledged support for Pakistan regarding Panda Bonds, further strengthening the economic ties between the two countries.
Ongoing meetings will continue to focus on the technical and logistical aspects of the conversion, ensuring a smooth transition to local coal for these power plants. This collaboration represents a significant step forward in enhancing Pakistan’s energy infrastructure and economic stability.
