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COMMENT: Exploiting Thar coal —Wasim Arif

There is optimism because the PPP heads the coalition government in Islamabad and is also leading the coalition government in Sindh, and is thus better placed than any other political entity to get rid of the political hurdles once and for all and finally begin exploiting Pakistan’s massive coal reserves

Load shedding has become a serious problem in Pakistan over the last year and a half, and is especially pronounced in the winter months. The recent power riots in several cities are only a preview of the kind of unrest that will face Pakistan if this power crisis is not tackled urgently.

Piecemeal measures will not work. Even the loud and proud pronouncements of the water and power minister, that load shedding will end by December 2009, do not convince many. While many projects, thermal and hydel, are being commissioned, the most effective and long-term solution is coal.

Consider that while Pakistan is facing serious difficulties meeting domestic energy demand, it possesses, in the Thar Desert, around 200 billion tons of coal. Consider also the fact that worldwide, coal provides for 25 percent of basic energy needs. Yet in Pakistan, coal counts for a pathetic 2 percent, despite the abundant and untapped coal reserves that sit untouched in Thar.

The original geological survey of Pakistan in 1992 said that the coal discovered in the Thar desert could meet Pakistan’s energy needs for ‘centuries’. Indeed, if only 2 percent of these coal reserves are utilised, Pakistan can generate 20,000 megawatts of electricity for 40 years. Imagine the amount of energy that could be generated if these reserves were fully and carefully exploited over decades.

Further, while getting coal projects up and running would require significant initial investment, as is the case with all energy generation projects, there will be significant benefit to the economy. Consider that our current energy mix is dominated by imported furnace oil, which is the largest item on our import bill. This is particularly troubling during times of economic crisis. Recent fluctuations in global oil prices, and their impact on Pakistan, are a case in point. Should Pakistan choose to develop its domestic coal reserves, it would provide significant protection against such international shocks.

As is the case around the world, there is concern over the environmental impact of coal power plants, especially regarding carbon emissions and their impact on the environment. However, there is no dearth of appropriate technologies for environment-friendly coal-fired power plants. Further research and development can increase the efficiency and safety of these plants. That, however, add to the cost of coal production and planners may worry about the overall expense. Even then, there is a need to make a choice in the greater national interest. Proponents of coal power in Pakistan argue that after generating power through coal for a few years, once we have freed up money from the import of oil, more can be invested into environment-friendly coal plants.

To sum up, Pakistan has one of the world’s largest coal reserves; it is in desperate need of cheap energy; and the technology for efficient coal-fired power generation is available.

So what, then, is stopping Pakistan from tapping the vast Thar reserves?

As is the case with most development issues in Pakistan, it comes down to the rulers of the day and their bickering. The Constitution of Pakistan declares mining to be a provincial subject. Sindh can claim the Thar coal reserves to be a strictly provincial issue as per the Constitution, and the federation also lays claim, thus there is a tussle between the province and the centre.

However, this bickering is futile and unnecessary. There is no reason that negotiators from Sindh and the federation can’t work out the necessary royalties and benefits that are Sindh’s right under the Constitution. And no other province would oppose that, as the coal would benefit all of Pakistan. The politicisation of the coal issue has set us back by many years already. An occasional ‘coal conference’ in the United States, or a vague statement of intent is not enough. The government needs to act.

However, there is optimism because the Pakistan People’s Party heads the coalition government in Islamabad and is also leading the coalition government in Sindh, and is thus better placed than any other political entity to get rid of the political hurdles once and for all and finally begin exploiting Pakistan’s massive coal reserves.

Wasim Arif is a freelance writer who blogs at www.blog.otherpakistan.org. He can be contacted at wasim@otherpakistan.org

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