The Pakistan Economy Watch (PEW) on Sunday lauded the landmark policy decision of the federal government to use Thar coal for coal-based power generation and said all conversions of existing as well as construction of new power projects will be designed on Thar Coal specifications.
The strategic decision is appropriate because prices of imported oil will never come down to reasonable level as gas supply from Iran and Turkmenistan remains uncertain while reserves of native natural gas are depleting, it said.
President PEW Dr Murtaza Mughal said Pakistan’s energy mix was far from balanced; the power sector was heavily dependent on costly fuel which was among the reasons behind circular debt and high electricity tariff. The government should adopt advanced coal conversion technology to transform inefficient gas-based and dual-fuel fired power plants to coal-fired power plants, he said.
Murtaza Mughal said that government should expedite Environmental Impact Assessment reports and that detailed technical and economic feasibility studies were needed for conversion. He said that government announcement to use Thar coal for coal-based power generation would help cut fuel import bill, create thousands of jobs and achieve energy security.
“Government should also make a plan to develop skilled people who can deal with clean coal combustion technology and develop related machinery locally in few years,” Dr Mughal demanded. He said that government should arrange more funds to safeguard the country’s frail power structure and the rights of consumers who needed protection from price spikes as well as power cuts.
Dr Mughal said that government should do more to encourage wind farms and try building latest nuclear power stations to meet growing energy requirements and ensure sustainable socio-economic development of the country.
“There is no harm in using imported coal for few years until country develop skills and infrastructure to utilize Thar coal,” the PEW president observed.
Dr Mughal remarked in the end that some local and foreign elements who did not want to see a prosperous Pakistan would always resist the government’s decision on different grounds.
