Pakistan Railways is set to begin work on the Thar coal railway connectivity project following approval from the Sindh government, which is finalising the project’s cost-benefit study.
According to a news report, despite the approval by the Executive Committee of the National Economic Council (ECNEC) in December last year, progress on the project had been slow.
Officials connected to the project stated that a crucial meeting would be held next week to expedite formalities and initiate work on the 105-kilometre track connecting the Thar coal mines to the New Chhor Station, along with an 18-kilometre double-track line between Bin Qasim and Port Qasim.
The proposed railway network will have the capacity to transport 10 million tons of coal annually, shifting Pakistan’s power generation from imported to domestic coal, and reducing the reliance on costly fuel imports.
This project could save the national exchequer approximately $1.5 billion annually by cutting fuel import costs.
The Thar coal railway connectivity project is part of the government’s strategy to convert coal-based power plants from imported to Thar coal, a cheaper and indigenous alternative.
The government is working to cut electricity prices, which have surged in recent years, causing public discontent. Imported coal is a significant factor behind the high electricity prices, and converting existing projects to Thar coal is seen as a solution.
Railway authorities stated they are awaiting the approval of the concept paper by the Sindh government. An acceptance letter has already been issued to the Frontier Works Organization (FWO), which won the tender for the project. The groundbreaking ceremony will be held once the project is cleared by the Sindh government.
Provincial officials reported that the Sindh government has allocated Rs5 billion for the project in the FY25 provincial budget, underscoring its commitment to the project.
