The statement by Akram Shaikh, Deputy Chairman of the Planning Commission, on 1st September 2006, that Pakistan has abundance of coal reserves for producing enough energy, is highly encouraging.
According to him, the government has decided to develop the Thar coal for power generation on a priority basis to overcome the energy crisis following confirmed estimates that its reserves are equivalent to at least 850 trillion cubic feet (TCF) of gas - about 30 times higher than Pakistan's proven gas reserves of 28 TCF. Thus "by using only two percent of the existing coal reserves, we can generate around 20,000 megawatts for almost 40 years". These estimates were confirmed by separate bankable feasibility studies by Chinese and Russian experts.
The comparison of our coal deposits with other countries also appeared to be very promising. The studies have confirmed that 185 billion tons of coal deposits in Pakistan were second only to 247 billion tons of reserves in the United States and much higher than 157 and 115 billion tons of reserves of Russia and China respectively.
Thar coal reserves, according to Akram Shaikh, were equivalent to at least 400 billion barrels of oil - equivalent to the oil reserves of Saudi Arabia and Iran put together. One estimate puts Pakistan's coal energy at 576 billion barrels of oil which is equivalent to combined oil reserves of the three largest producers.
The matter of pursuing and developing the Thar coal project, in our view, has become extremely important after the above revelation and must be taken up on a priority basis. While the country is presently facing an acute energy shortage, the requirements are increasing day by day with the result that load-shedding on a still larger scale could become inevitable. Industries in that case would suffer tremendously and foreign investors would also be more inclined to avoid the country due to energy shortage.
At the same time, prices of oil in the international market have increased to almost unaffordable levels. Besides, there has been no tangible or bankable progress on the three proposed gas pipelines, and hydel projects proposed to be undertaken in the country will take years or probably decades to be completed. In these circumstances, it is imperative for the country to go for the coal option.
According to reliable estimates, coal mining in Thar requires a phased investment of four billion dollars. If the coal reserves and the likely benefits to the nation are nearly as high as reported by the Deputy Chairman of Planning Commission, the investment on the project definitely will be more than justified. However, it needs to be ensured that the process of conversion of coal into energy, in view of several technical requirements and inevitable sub-processes, will be pursued as an absolutely environment friendly, economic activity.