Pakistan expects to save more than $3.2 billion over the next 26 years by converting the Jamshoro Unit-1 power plant from imported coal to locally mined Thar lignite, according to a feasibility study presented to the Ministry of Energy.

The study found the project is technically feasible, economically beneficial and environmentally manageable, Gwadar Pro reported.

As per an official statement, the conversion would generate an estimated $2.1 billion in foreign exchange savings by reducing reliance on imported fuel.

Federal Minister for Power Sardar Awais Ahmed Khan Leghari said the project aligns with the government’s broader energy reform agenda and efforts to increase the use of indigenous resources.

The initiative is expected to strengthen energy security while reducing exposure to international coal price volatility and currency fluctuations.

According to the study, the project would deliver a cost-benefit ratio of 1.8 and create total benefits of approximately $3.24 billion over its lifespan.

Those benefits include lower generation costs, reduced financing expenses and economic gains linked to the expansion of coal mining operations in the Thar region.

The feasibility study, prepared by international consulting firm Dornier Group with support from EY Parthenon, concluded that Jamshoro Unit-1 can be converted to operate entirely on Thar lignite through targeted engineering modifications rather than a full boiler replacement.

Officials said the approach preserves existing infrastructure and minimizes capital costs.

With the feasibility phase complete, the government plans to move into implementation readiness, including regulatory approvals, engineering verification, procurement planning and financing arrangements.

Credit: Independent News Pakistan (INP) — Pak-China