China endorses switch to local coal for three major Pakistani power plants

Step aims to cut costs and boost energy efficiency

China has given the green light for converting three major coal-fired power plants in Pakistan to use locally sourced coal instead of imported fuel, a move poised to cut down on energy costs.

Finance Minister Muhammad Aurangzeb and Energy Minister Owais Leghari, who are currently on a visit to China, played a key role in securing this agreement.

The power plants affected are the 1,320 MW Sahiwal Coal Power Plant, the 1,320 MW Hub Power Plant, and the 1,320 MW Port Qasim Power Plant. These plants are known for their high electricity production costs.

The Chinese delegation expressed strong support for the transition to local coal and outlined the steps needed to implement this change. Additionally, they committed to providing full backing for Pakistan’s Panda Bonds, enhancing the bilateral cooperation between the two countries.

Ongoing meetings between Pakistani and Chinese officials will focus on the conversion process and ensure successful re-profiling of the power plants.

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