A special purpose vehicle (SPV) will be established to execute the Thar rail connectivity project, aimed at transporting coal to power plants in northern Pakistan. The project, valued at Rs53.726 billion, will be completed within 18 months, with the Sindh government contributing Rs26.863 million under a 50% cost-sharing formula.
The Ministry of Railways has allocated Rs15.100 billion in PSDP for FY25 and released Rs4.600 million as a mobilization advance to the contractor, Frontier Works Organisation. The railway network will have a capacity of transporting 10MTPA of coal, helping Pakistan shift its power generation from imported to domestic coal and reduce reliance on costly fuel imports.
The project is expected to save the national exchequer from importing fuel amounting to $1.5 billion annually. The Thar coal railway connectivity project is part of the government’s efforts to shift coal-based power plants from imported coal to Thar coal, which is an indigenous and cheap fuel for electricity generation.
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