THARPARKAR / KARACHI — Pakistan reached a landmark milestone in domestic energy security on Monday, October 5, 2026, with the official inauguration of the Phase-3 expansion at Thar Coal Block-II alongside the commissioning of the country’s first industrial-scale coal drying facility.
The ceremony at the Thar Coal Block-II mine in Islamkot was jointly led by Pakistan Peoples Party Chairman Bilawal Bhutto-Zardari and Sindh Chief Minister Syed Murad Ali Shah, accompanied by senior provincial cabinet members, energy sector executives, and local community representatives.
Production Capacity Reaches 11.2 Million Tonnes Annually
The newly operational Phase-3 expansion scales the mining output of Thar Block-II from 7.6 million tonnes to 11.2 million tonnes per year—an immediate 47 percent increase representing 3.6 million tonnes of additional annual indigenous lignite extraction. The project was completed through complete self-financing by the public-private partnership consortium, achieving operational readiness ahead of schedule.
The augmented coal supply is primarily dedicated to powering the 660-megawatt Lucky Electric Power Company plant situated at Port Qasim. By transitioning this major baseload facility entirely from expensive imported coal to domestic Thar lignite, the project directly curbs Pakistan’s foreign exchange exposure and reduces generation costs across the national grid.
First Commercial Coal Drying Facility Inaugurated
Alongside the mine expansion, provincial leaders inaugurated Pakistan’s inaugural commercial coal drying plant at the site. Designed to address the high moisture content natural to Thar lignite, the plant utilizes advanced thermal drying technology to reduce moisture levels, raise calorific value, and enable safe long-distance rail transportation to power stations throughout Punjab and the northern industrial corridors.
The energy milestone comes at a crucial juncture as Pakistan manages complex fiscal structural reforms under its ongoing IMF program and power sector circular debt consolidation. Officials highlighted that maximizing indigenous energy resources shields the domestic economy from international oil shocks and maritime transit vulnerabilities, transforming the Thar desert into Pakistan’s central energy engine.