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Financial Impediments in Harnessing Thar Coal for the Creation of Electrical Energy in Pakistan

Author

Listed:
  • Farhan-ul-Furqan Khan
  • Ahmed Tunio
  • Shakeel Ahmed
  • Qazi Muhammad Moinuddin Abro

Abstract

The goal of this research is to identity the financial impediments in harnessing Thar coal reserves for the creation of electrical energy in the country. It is estimated that about 175 billion tons of Lignite reserves are located near Islamkot (Tharparkar district) and it is the fourth largest reserve in the world that is spread over 9100 square kilometers. The cost estimation of these reserves is about $ 25 trillion. These reserves have potential to generate 100,000 MW of electricity for 300 years and Di-Methyl Ether (Diesel) can also be produced from this coal. These reserves are greater than the summation of total oil reserves of Saudi Arabia and Iran. Thar coal block II and VIII is enough to generate electricity for 40 and 76 years for Pakistan respectively. The huge finance of approximately USD 2.6 billion is required to utilize these Coal reserves for energy purpose and some agreements were signed for the development of these coal reserves but all proposals and agreements falsified due to financial problems which have been thoroughly discussed and highlighted in this study.

Suggested Citation

  • Farhan-ul-Furqan Khan & Ahmed Tunio & Shakeel Ahmed & Qazi Muhammad Moinuddin Abro, 2014. "Financial Impediments in Harnessing Thar Coal for the Creation of Electrical Energy in Pakistan," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 3(5), pages 370-378.
    • Handle: RePEc:rss:jnljms:v3i5p8
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    References listed on IDEAS

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    2. Yang, Ming, 2009. "Climate change and energy policies, coal and coalmine methane in China," Energy Policy, Elsevier, vol. 37(8), pages 2858-2869, August.
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