The federal government on Tuesday approved the agreement of foreign loan and sovereign guarantee for the Thar Coal Mining project.
According to a notification released by the Finance Ministry, foreign loan for the project is part of the China-Pakistan Economic Corridor (CPEC) agreement. This loan will be released by a group of Chinese banks.
The ministry has also given the green signal to the clauses regarding the local loans for the project. Now, the Sindh Engro Coal Company will be able to generate funds for the project by the end of this year. Local banks will provide a loan of Rs 50 billion for this project.
The Sindh Engro Coal Company has been set up as a public-private partnership in order to utilise the 180-billion-ton reservoirs of coal in Sindh’s district of Tharparkar.
