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.
Diesel-powered mining operations, including dewatering processes, currently consume between 200,000 and 250,000 liters per day, with about 35,000 liters used for water management alone, the statement said.
Under the plan, mining operations in Thar Block-I and Block-II will transition to grid-powered infrastructure, supported by an investment of about 5.3 billion rupees ($19 million) in transmission and grid systems.
This will enable a power supply of around 60 megawatts from the national grid to mining sites, replacing diesel-based systems.
The Power Division said the cost of electricity used in mining operations is expected to fall from about 33 cents per kilowatt-hour to 13 cents, a reduction of more than 60 percent.
The shift is also expected to reduce carbon emissions by approximately 80,000 tons annually, with further plans to transition diesel-powered mining vehicles to electric alternatives.
The government said the move would ease pressure on foreign exchange reserves while improving overall efficiency in the power sector, with savings expected to be passed on to consumers through lower electricity costs.
