Pakistan moves to convert three imported coal power plants to local fuel

Pakistan moves to convert three imported coal power plants to local fuel
This picture taken on May 23, 2018 shows a general view of a Chinese-backed power plant under construction in Islamkot in the desert in the Tharparkar district of Pakistan's southern Sindh province. (AFP)
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Updated 30 August 2024
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Pakistan moves to convert three imported coal power plants to local fuel

Pakistan moves to convert three imported coal power plants to local fuel
  • Government sets up four-member committee to provide recommendations on switching Chinese power plants to using Thar coal
  • Energy ministry said last year Pakistan planned to quadruple its domestic coal-fired capacity, would not build new gas-fired plants

ISLAMABAD: Pakistan’s ministry for energy this week set up a four-member committee to provide recommendations so Chinese power plants operating in the country can be shifted to coal from Pakistan’s Thar region rather than imported coal.

Neighboring China has set up over $20 billion worth of energy projects in Pakistan under the China-Pakistan Economic Corridor (CPEC). Three coal-fired power plants of 1,320 megawatts each have been set up under CPEC, one in Sahiwal in 2017, another in Port Qasim in Karachi in 2018, and the third one in Balochistan’s Hub in 2019. All three run on imported coal, which costs over $1.5 billion per annum, according to a National University of Sciences & Technology study published this year.

The cost of electricity generated through imported coal stands at Rs20.02 per kilowatthour as opposed to indigenous coal at Rs14.19/kWh.

Pakistan, a country of more than 240 million people, depends chiefly on natural gas to produce electricity, but has been looking to boost coal-fired output to save costs. The country, with a total installed electricity generation capacity of approximately 41,268 megawatts, relies heavily on imported fuels, including on Regasified Liquefied Natural Gas (RLNG), coal and furnace oil, which account for nearly 47 percent of its power generation mix.

“The Federal Ministry for Energy (Power Division) has been pleased to constitute the following committee for conversion of 03 imported coal based IPPs [independent power producers] to Thar coal, developed under China-Pakistan Economic Corridor (CPEC) framework,” the ministry said in a notification dated Aug. 28.

The committee led by the additional secretary of the power division will prepare technical and financial feasibility studies for the conversion of the plants to Thar coal. It will also “look into the logistics for transportation of coal from Thar mines to projects’ sites” and provide “recommendations, way forward and implementation plan [if feasible]” to the government.

Last February, the energy ministry said Pakistan planned to quadruple its domestic coal-fired capacity to reduce power generation costs and would not build new gas-fired plants in the coming years.

The transition could save Pakistan more than Rs200 billion a year in imports, translating to a decrease of as much as Rs2.5 per unit in the price of electricity, Awais Leghari, head of the energy ministry’s Power Division, said in an interview last month. The energy ministry told Arab News it did not have updated data on coal imports.

Energy experts said while it was feasible to convert the imported coal-fired power plants, it would take two to three years due to a lack of local coal.

“The electricity cost can be reduced by half by switching the imported coal power plants to the local fuel, but this cannot be done instantly,” Farhan Mahmood, head of research at Sherman Securities in Karachi, told Arab News.

He said local coal would cost around $50 per ton while imported coal was around $120 per ton, though the imported coal was of higher grade and efficiency, with comparatively less carbon emissions.

Mahmood said Pakistan was mining around 7.6 million tons of coal per annum from Thar and planning to boost it to 11 million tons in up to three years.

“We will have to first boost our mining capacity and quantity to meet the fuel demand of the power plants,” he said. “There is a dire need to enhance our local coal share in the energy mix to bring down the electricity prices and cut the import bill.”

Exorbitant power bills have led to street protests in Pakistan in recent months and calls to review contracts with IPPs, which produce expensive electricity.

Pakistan has been trying to cut down on the use of furnace oil for power generation and to boost natural gas-fired electricity production.


Residents of Pakistani Kashmir say they fled into hills during Indian strikes

Residents of Pakistani Kashmir say they fled into hills during Indian strikes
Updated 2 min 45 sec ago
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Residents of Pakistani Kashmir say they fled into hills during Indian strikes

Residents of Pakistani Kashmir say they fled into hills during Indian strikes
  • Mosque loudspeakers told people to seek shelter as ground shook, sounds of explosions reverberated, residents say
  • Many people gathered after sunrise near a mosque that had been hit in the strikes, its roof smashed and minaret toppled

MUZAFFARABAD: Residents of Muzaffarabad, the capital of Azad Kashmir, said they fled their homes and ran into surrounding hills as India launched airstrikes early on Wednesday in a part of the city.

Mosque loudspeakers told people to seek shelter as the ground shook repeatedly and the sounds of explosions reverberated, they said.

“We came outside,” said Muhammad Shair Mir, 46, describing the events of the night. “Then another blast happened. The whole house moved. Everyone got scared, we all evacuated, took our kids and went up (the hill).”

Many people gathered after sunrise near a mosque that had been hit in the strikes, its roof smashed and minaret toppled. Security forces had cordoned off the area.

The district commissioner, a senior local official, said three people were killed near the collapsed mosque. In total, Pakistan’s military said 26 people were killed and 46 wounded in Indian attacks across Pakistan and Pakistani Kashmir, which is called Azad Kashmir.

India launched the strikes early on Wednesday, saying it was targeting “terrorist camps” that served as recruitment centers, launchpads, and indoctrination centers, and housed weapons and training facilities.

Pakistan called it a “blatant act of war” as tensions spiraled between the nuclear-armed rivals after a deadly attack by Islamist gunmen on tourists in Indian Kashmir. It said none of the targeted areas were militant camps.

District officials said that at the Line of Control that divides Pakistani and Indian Kashmir, mortar and light arms fire between the two armies continued into the morning and had killed at least six civilians on the Pakistani side.

Police in Indian Kashmir said at least 10 people were killed and nearly 50 injured there.

In Muzaffarabad, hospitals were operational and some small businesses opened in the morning but schools were closed and examinations canceled, according to local authorities.

Shair Mir said he and his family spent four hours in the open. Some of his neighbors had gone to hospital with injuries and the rest were shaken, he said.

“This is wrong ... poor innocent people, our poor mothers are sick, our sisters are sick .. our houses were rattled, our walls have cracked,” he said.


UAE, Türkiye among world powers urging restraint after India-Pakistan military clash

UAE, Türkiye among world powers urging restraint after India-Pakistan military clash
Updated 31 sec ago
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UAE, Türkiye among world powers urging restraint after India-Pakistan military clash

UAE, Türkiye among world powers urging restraint after India-Pakistan military clash
  • President Trump calls the escalation ‘a shame’ but hopes it will end ‘very quickly’
  • China calls India’s military action ‘regrettable,’ asks both countries for restraint

ISLAMABAD: World leaders on Wednesday urged restraint and pressed for a peaceful resolution after India launched missile strikes in Pakistan, triggering retaliatory attacks and raising fears of a broader military confrontation between the nuclear-armed neighbors.

The international reaction came as tensions soared following Indian attacks on six locations inside Pakistan, which Islamabad said killed at least 26 civilians and injured 46.

In response, Pakistan claimed to have downed five Indian fighter jets and struck Indian military posts along the Line of Control.

UNITED STATES

US President Donald Trump condemned the escalation, expressing hope that the fighting would end quickly.

“It’s a shame,” he said. “Just heard about it. I guess people knew something was going to happen based on a little bit of the past. They’ve been fighting for a long time. They’ve been fighting for many, many decades. I hope it ends very quickly.”

Meanwhile, US Secretary of State Marco Rubio said he was monitoring the situation closely and would continue to engage with the leadership of both countries for a “peaceful resolution.”

CHINA

A Chinese foreign ministry spokesperson said India’s actions were “regrettable,” urging both countries to exercise restraint and refrain from further complicating the situation, Reuters reported.

“China finds India’s military operation early this morning regrettable. We are concerned about the ongoing situation,” the spokesperson said. “We urge both sides to act in the larger interest of peace and stability, remain calm, exercise restraint and refrain from taking actions that may further complicate the situation.”

UNITED ARAB EMIRATES

United Arab Emirates Foreign Minister and Deputy Prime Minister Abdullah bin Zayed bin Sultan Al Nahyan called on Pakistan and India “to exercise restraint, de-escalate tensions, and avoid further escalation that could threaten regional and international peace,” Emirates News Agency-WAM reported.

“He reaffirmed that diplomacy and dialogue remain the most effective means of peacefully resolving crises, and achieving the shared aspirations of nations for peace, stability, and prosperity,” it added.

UNITED NATIONS

The spokesperson for United Nations Secretary-General Antonio Guterres said the UN chief called for “maximum military restraint” from both countries, Reuters reported.

“The Secretary-General is very concerned about the Indian military operations across the Line of Control and international border,” the spokesperson said. “He calls for maximum military restraint from both countries. The world cannot afford a military confrontation between India and Pakistan.”

FRANCE

French Foreign Minister Jean-Noël Barrot aurged Pakistan and India to show restraint.

“We understand India’s desire to protect itself against the scourge of terrorism, but we obviously call on both India and Pakistan to exercise restraint to avoid escalation and, of course, to protect civilians,” he said in an interview on TF1 television of France.

UNITED KINGDOM

The UK is ready to support both India and Pakistan to de-escalate tensions, Trade Secretary Jonathan Reynolds said on Wednesday, following the worst violence between the nuclear-armed arch-foes in two decades.

“Our message would be that we are a friend, a partner to both countries. We stand ready to support both countries. Both have a huge interest in regional stability, in dialogue, in de-escalation and anything we can do to support that, we are here and willing to do,” he told BBC radio.

The Foreign Office advised British nationals against travel within eight kilometers (five miles) of the India-Pakistan border, within 16 kilometers of the Line of Control — a heavily fortified zone of high-altitude Himalayan outposts that represents the de facto Kashmir border — and all travel to the southwestern Balochistan province of Pakistan.

“We are continuing to monitor the situation closely. British nationals should stay up to date with our travel advice and follow the advice of local authorities,” it added.

RUSSIA

The Russian Ministry of Foreign Affairs expressed “deep concern” over the escalating military confrontation between Pakistan and India, urging both nations to exercise restraint.

Russia added that it condemned all forms of terrorism, according to a statement by the Russian foreign ministry.

GERMANY

Germany said on Wednesday that an “escalation must be prevented” amid the most serious military confrontation between India and Pakistan in two decades.

“Responsible action is urgently needed from both countries,” said the foreign ministry in a statement on X, adding it was convening a crisis meeting and German officials were in contact with both sides.

TÜRKIYE

Türkiye urged India and Pakistan to act with common sense amid the military escalation between them, its foreign ministry said on Wednesday, saying India’s latest military action created the risk of an “all-out war.”

In a statement, the ministry reiterated its support for Pakistan’s call for an investigation into an Islamist militant attack that killed 26 in the Indian-administered side of the Himalayan region on April 22.

With inputs from Reuters and AFP


Pakistan says armed forces authorized to undertake ‘corresponding actions’ after India strikes

Pakistan says armed forces authorized to undertake ‘corresponding actions’ after India strikes
Updated 33 min 54 sec ago
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Pakistan says armed forces authorized to undertake ‘corresponding actions’ after India strikes

Pakistan says armed forces authorized to undertake ‘corresponding actions’ after India strikes
  • India says struck nine sites that served as militant recruitment centers, launchpads and indoctrination centers
  • Pakistan army says at least six locations across its territory targeted, with 26 civilians killed and 46 injured

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif said on Wednesday the country’s top national security body had authorized its armed forces to take “corresponding actions” in response to Indian strikes inside Pakistani territory in which 26 civilians were killed overnight. 

In the sharpest military escalation in more than two decades between the nuclear-armed rivals, the Indian government said it struck nine Pakistani “terrorist infrastructure” sites involved in planning a deadly attack in Indian-administered Kashmir on April 22. The assault took place on the tourist hill station of Pahalgam in the part of Kashmir governed by India, with 26 men killed. 

The Pakistani military said six locations across its territory — Ahmedpur East, Muridke, Sialkot, Shakargarh in the eastern province of Punjab and Kotli and Muzaffarabad in Azad Kashmir — were targeted. Azad Kashmir is the part of the disputed Kashmir valley that is administered by Pakistan. 

In response, Pakistan military spokesperson Lt. Gen. Ahmed Sharif Chaudhry said five Indian planes and one combat drone that had attacked Pakistan were shot down, naming three Rafales and an MiG-29 and Su-57 each.

“In consonance with Article-51 of the UN Charter, Pakistan reserves the right to respond, in self-defense, at a time, place, and manner of its choosing to avenge the loss of innocent Pakistani lives and blatant violation of its sovereignty,” PM Sharif’s office said in a statement after he chaired a meeting of the National Security Committee, referring to the right of self-defense according to Chapter VII, Article 51, of the UN Charter.

“The Armed Forces of Pakistan have duly been authorized to undertake corresponding actions in this regard.”

The statement added that India, “against all sanity and rationality, has once again ignited an inferno in the region,” saying the responsibility for ensuing consequences lay squarely with New Delhi. 

Pakistan’s foreign ministry said the Chargé d’Affaires had been summoned “to receive Pakistan’s strong protest over the unprovoked Indian strikes.”

“The Indian side was warned that such reckless behavior poses a serious threat to regional peace and stability.”

“TERRORIST CAMPS”

In New Delhi, two Indian military spokespersons told a briefing Indian forces had attacked facilities linked to militant groups Jaish-e-Mohammed and Lashkar-e-Taiba. Pakistani officials say India only hit civilian infrastructure. 

The strikes targeted “terrorist camps” that served as recruitment centers, launchpads, and indoctrination centers, and housed weapons and training facilities, the Indian spokespersons said.

They said Indian forces used niche technology weapons and carefully chose warheads to avoid collateral damage to civilians and civilian infrastructure, but did not elaborate on the specifics or methods used in the strikes.

“Intelligence and monitoring of Pakistan-based terror modules showed that further attacks against India were impending, therefore it was necessary to take pre-emptive and precautionary strikes,” Indian Foreign Secretary Vikram Misri, the top official in its external affairs ministry, told the briefing.

The joint briefing by the Indian military and foreign ministry listed past attacks in India blamed on Pakistan, with Misri saying Pakistan had not done anything to “terrorist infrastructure” after the Pahalgam attack, which triggered the latest standoff. 

Pakistan had denied involvement in the attack and Prime Minister Shehbaz Sharif had offered to be part of any credible and transparent investigation.

Kashmir has been disputed between India and Pakistan since 1947. Both rule it in part and claim it in full and have fought two of their three wars over the Himalayan region. India accuses Pakistan of arming and training militants involved in a separatist insurgency in its part of Kashmir since 1989, which Islamabad denies, saying it offers only moral and diplomatic support to the Kashmiri people in their struggle for self-determination.

The current confrontation is reminiscent of the last major military standoff between the two nations in 2019, when an Indian airstrike in the northwestern town of Balakot was followed by Pakistani retaliatory action, including the downing of an Indian fighter jet and the capture of its pilot, who was later released in a gesture of goodwill.

On Wednesday morning, the South Asian neighbors also exchanged intense shelling and heavy gunfire across much of their de facto border called the Line of Control, which divides disputed Kashmir between them. 

The shelling across the frontier in Kashmir killed 10 civilians and injured 48 in the Indian part of the region, police there told media. At least six people were killed on the Pakistani side, Reuters reported, quoting officials.

Four local government sources in Indian-administered Kashmir told Reuters three fighter jets had crashed in separate areas of the Himalayan region during the night. Indian defense ministry officials have not officially confirmed the report.

– With inputs from Reuters


Pakistan calls emergency meeting to review market resilience, financial security amid India standoff

Pakistan calls emergency meeting to review market resilience, financial security amid India standoff
Updated 32 min 51 sec ago
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Pakistan calls emergency meeting to review market resilience, financial security amid India standoff

Pakistan calls emergency meeting to review market resilience, financial security amid India standoff
  • KSE-100 opened down 5.8 percent, largest drop in a month, bringing total losses since April 22 to 10 percent
  • Stocks started rebounding as investors expected “no major escalation” with India going forward, analysts said

KARACHI: The Pakistani finance minister on Wednesday convened an emergency meeting “to review market resilience and financial security,” the ministry said, as stocks plunged about six percent at the open after India carried out strikes on Pakistan and Azad Kashmir. 

The market reaction followed India targeting six locations inside Pakistan, in which the Pakistan army said at least 26 civilians were killed. Islamabad said it had responded by targeting Indian fighter jets and striking military posts along the Line of Control that divides the two sides of the disputed Kashmir region.

The benchmark KSE-100 Index dropped 6,560 points to 107,007 as trading began at 9:32 AM at the country’s equity market in Karachi, according to the Pakistan Stock Exchange (PSX) website.

“Today’s was the heaviest daily loss since April 7 when the index fell 7.3 percent,” Muhammad Waqas Ghani, head of research at JS Global Capital, told Arab News.

The stock index opened down 5.8 percent but is “now recovering,” Mohammed Sohail, chief executive officer at Topline Securities, said in a note to clients.

The finance ministry meanwhile said an emergency meeting had been called “to assess the current financial landscape in light of escalating regional tensions.”

“The Finance Minister reiterated that Pakistan’s financial system remains stable and secure, and that all relevant authorities are working in close coordination to uphold national economic integrity in the face of emerging challenges,” a statement said. 

Smoke rises in the main town of Poonch district on May 7, 2025. (AFP)

The Securities and Exchange Commission of Pakistan (SECP) also “assured market stability,” a statement by the regulator said. 

“SHARP REBOUND”

The latest standoff comes as Pakistan’s government treads a tricky path to economic recovery, bolstered by a $7 billion IMF loan.

The South Asian nation’s stock index had surged more than 80 percent last year, mainly due to IMF-backed economic stability, with interest rates halving to 11 percent since June and inflation easing to a record 0.3 percent in April.

However, equities began declining after April 22, the day 26 tourists were killed in Pahalgam in Indian-administered Kashmir. The attack triggered the latest standoff between the longstanding enemies, with New Delhi blaming Islamabad of involvement, a charge Pakistan denied.

The renewed geopolitical tension caused the market to fall about 10 percent by Wednesday morning, though it began recovering and pared losses to 1.2 percent by 10:45 AM, reflecting the strong macroeconomic fundamentals of the country’s stabilizing economy.

“The sharp rebound of 4,500 points reflects underlying market confidence, driven by strong economic fundamentals,” said Ghani.

Investors, he added, were also encouraged by a statement from US Secretary of State Marco Rubio expressing hope that the situation would de-escalate “quickly.”

Analyst Amreen Soorani, head of research at Al Meezan Investment Management, said Pakistan’s past escalations with archrival India had “historically presented headwinds for equities.”

She said while Pakistan’s economy carried higher sensitivity to prolonged conflict, nuclear deterrence between the neighboring countries remained a critical factor limiting major escalation.

Similar events in the past, Soorani said, suggested a pattern of eventual de-escalation, helping restore investor confidence.

“Given prevailing attractive valuations and the anticipated positive impact of IMF developments on investor sentiment, positive sentiments may remain intact in the longer term,” she added.

Metal debris lies on the ground in Wuyan in India-administered Kashmir's Pulwama district May 7, 2025.(Reuters)

Topline Securities CEO Sohail said stocks were rebounding as investors expected “no major escalation” going forward.

“Investors seem optimistic about the upcoming IMF board meeting which will decide on the loan tranche for Pakistan,” he added.

The IMF’s executive board is scheduled to meet on May 9 to approve the release of about a $1 billion tranche for cash-strapped Pakistan as it seeks to boost its dwindling foreign exchange reserves.


Pakistan’s cricket board says PSL T20 tournament to continue despite India-Pakistan tensions

Pakistan’s cricket board says PSL T20 tournament to continue despite India-Pakistan tensions
Updated 07 May 2025
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Pakistan’s cricket board says PSL T20 tournament to continue despite India-Pakistan tensions

Pakistan’s cricket board says PSL T20 tournament to continue despite India-Pakistan tensions
  • PSL features several foreign players and is credited with reviving international cricket in Pakistan
  • PCB says the cricket league will proceed, with Islamabad United set to take on Quetta Gladiators today

KARACHI: The Pakistan Cricket Board (PCB) on Wednesday confirmed that the HBL Pakistan Super League (PSL) will proceed as scheduled, with Islamabad United set to face Quetta Gladiators later tonight in Rawalpindi, despite rising military tensions with neighboring India.
The match is set to begin at 8 PM local time at the Rawalpindi Cricket Stadium, marking the league’s return to the city for four consecutive fixtures from May 7 to 10.
“HBL Pakistan Super League X will continue as planned with Islamabad United set to take on Quetta Gladiators later today at the Rawalpindi Cricket Stadium,” reads a handout issued by PCB.
The final group match, the PCB added, will be played in Multan on May 11, followed by the Eliminator in Rawalpindi on May 13. The playoffs and final are scheduled for May 14, 16 and 18 at Lahore’s Qaddafi Stadium.
The confirmation comes hours after Pakistan’s military said Indian missile strikes had killed at least 26 civilians and wounded 46 in cross-border attacks on six locations inside Pakistani territory.
India’s defense ministry said it had launched “Operation Sindoor,” targeting what it claimed were “militant infrastructure” linked to a recent deadly assault on tourists in Indian-administered Kashmir.
New Delhi has blamed the attack on Pakistan, a charge Islamabad has repeatedly denied.
Responding to the Indian attack, Pakistan’s Information Minister Attaullah Tarar said the country’s air force had downed five Indian fighter jets in the early hours of Wednesday.
The PSL, which features several foreign players, is widely credited with reviving international cricket in Pakistan after a decade-long suspension following the 2009 militant attack on the Sri Lankan team in Lahore.
The HBL PSL, now in its 10th season, is considered Pakistan’s premier T20 franchise competition and a symbol of the country’s sporting resilience.
Since its full return to home soil in 2020, it has helped Pakistan rebuild its reputation as a safe destination for international cricket.