Pakistan’s Rs90 billion Thar coal rail project clashes with Port Qasim green hub plan: report

Pakistan’s push to strengthen energy security through domestic coal has run into a policy contradiction at Port Qasim, where a Rs90 billion rail project designed to transport Thar lignite is advancing alongside plans to position the port as a future green energy hub, according to a report by The Express Tribune. 

The government is nearing completion of a dedicated railway line to move coal from the Thar Desert to Port Qasim, with the stated aim of reducing reliance on imported fuel and lowering power generation costs. At the same time, the Ministry of Maritime Affairs has announced plans to develop Port Qasim into a climate-resilient industrial zone, targeting foreign investment in green hydrogen and cleaner shipping fuels.

Officials have said the green transition at the port is intended to attract investment, create jobs and align Pakistan with emerging global trends in low-carbon maritime and industrial activity.

The parallel development paths have raised concerns over long-term alignment. Infrastructure of this scale is typically planned for multi-decade use, and the financial viability of the coal rail link depends on sustained demand for coal over many years. Global shipping and energy markets, however, are increasingly moving toward net-zero targets, with growing scrutiny of fossil fuel-dependent supply chains.

Authorities have been asked to clarify how the coal-specific railway fits into Port Qasim’s longer-term development strategy, and how the risk of the asset becoming underutilised would be addressed if coal demand declines faster than expected.

According to The Tribune’s report, Port Qasim Authority officials have defended the rail project as a measure to meet current energy needs. They argue that domestic coal transport supports near-term energy security, while green investments at the port are aimed at preparing for future transitions.

“The coal rail project from Thar to Port Qasim supports immediate energy requirements by reducing import dependence, while the green maritime vision lays the groundwork for a low-carbon future,” a PQA spokesperson said, adding that both initiatives are part of a phased strategy.

Energy analysts note that large infrastructure projects linked to coal face multiple risks, including cost overruns, financing gaps, land acquisition challenges and environmental considerations. They also point to uncertainty around timelines, particularly as global financing and policy frameworks increasingly shift away from coal.

With construction continuing on the rail link and parallel efforts underway to reposition Port Qasim for green investment, the situation highlights the challenge of balancing short-term energy needs with longer-term transition goals in Pakistan’s energy and industrial planning.