Nepra Report Urges Pakistan to Utilize Thar Coal

Pakistan's economic growth rate for the financial year 2022-23 has been severely impacted by the high cost of electricity, according to the National Electric Power Regulatory Authority (Nepra). The country's GDP growth rate plummeted to a mere 0.29% due to the exorbitant electricity rates, as highlighted in Nepra's 'State of the Industry Report 2023'.

Nepra pointed out that the escalating prices of essential primary energy resources like coal, oil, and gas in the international market, coupled with the drastic devaluation of the local currency, have significantly strained the power sector and burdened consumers. This has led to increased tariffs across all sectors of society, including domestic, commercial, industrial, agriculture, and services.

The report emphasized the need for Pakistan to focus on utilizing its indigenous resources more efficiently. It highlighted that nuclear and Thar coal-based plants could offer a cost-effective solution for base load power generation. The Thar Coal Power Plant, in particular, has the potential to reduce electricity costs by up to 20% if its production capacity is optimized.

Yousuf M Farooq, a research director, advocated for greater reliance on Thar's coal resources, citing them as the lowest-cost electricity producers in the country. He stressed the importance of investing in Thar coal mines and infrastructure to leverage the economic benefits of local coal reserves.

In conclusion, addressing the high cost of electricity in Pakistan requires a strategic shift towards utilizing indigenous resources like Thar coal to enhance energy affordability and stimulate economic growth.