ISLAMABAD: Pakistan needs to exploit the potential of its black gold (coal) reserves on a war footing to bring down its massive fuel import bill, said a renowned expert.
During the fiscal year 2021-22, Pakistan paid $30 billion for import of fuel to fulfil its domestic needs, which is almost equal to the country’s total exports.
Coal energy expert Chaudhry Abdul Qayyum said while talking to WealthPK that Pakistan has one of the world’s largest reserves of lignite coal. He said coal is one of the cheapest energy sources, and fulfils 40% of the world’s energy requirements, generating 2 million megawatts of electricity.
He said that currently, Pakistan has been using coal energy to meet only 14% of its electricity needs while sitting on coal reserves of 3,377 million tons.
Reserves of coal were discovered in Pakistan 40 years ago, but due to lack of proper planning, Pakistan remained aloof to take maximum advantage from this black gold.
“Pakistan’s exports volume since last few years has been hovering around 25-31 billion dollars, while the volume of imports touched the $80 billion mark during the last fiscal year, making a massive difference in balance of payments,” Abdul Qayyum said.
He said drastic reduction in the fuel import bill was imperative for improving the balance of payments and getting away with the looming threat of default. He said cheaper electricity generated from coal will lower power tariffs, which would enable manufacturers to produce cheaper products for end consumers. He said increased production will also boost exports and bring more revenue for the country.
In Sindh province, Thar desert has been identified as the 16th largest coal reserve in the world. Rich coal deposits are also available in Balochistan and Punjab provinces.
Abdul Qayyum said Pakistan needs to pursue a balanced approach to take advantage of the massive reserves of coal for electricity generation with minimum impact on the environment.
