Petroleum Minister’s Visit Sparks Investment Talks with Chinese Coal Giant

ISLAMABAD: Pakistan and a Chinese coal company have discussed investment in technology and joint ventures to manufacture chemicals from coal reserves in Pakistan’s southern Sindh province, the Pakistani petroleum ministry said on Sunday.

The statement came after Petroleum Minister Dr. Musadik Malik’s visit to Shaanxi Coal and Chemical Industry Group Company headquartered in Xi’an, China.

During the visit aimed at strengthening bilateral cooperation, the petroleum minister was given a detailed briefing on various operations of the firm.

“Pakistan has vast reserves of coal,” Malik was quoted as telling officials of the Chinese coal firm. “Pakistan is determined to make full and efficient use of its natural resources.”

The visit aimed to strengthen bilateral cooperation between Pakistan and China, particularly in coal, and both parties engaged in productive discussions about potential partnerships, according to the petroleum ministry.

Representatives from Pakistan’s Thar Coal Board, Sindh Engro Coal Mining Company and the Sindh energy department were also part of the meeting.

Pakistan has been mining around 7.6 million tons of coal per annum from Thar and plans to boost it to 11 million tons in up to three years, Farhan Mahmood, head of research at Sherman Securities in Karachi, told Arab News last month.

Pakistan, which has been struggling with a balance of payments crisis, record inflation and steep currency devaluation, lacks adequate resources to run its oil- and gas-powered plants and is looking to boost coal-fired output to save power generation costs.

In August, Pakistan’s energy ministry set up a four-member committee to provide recommendations to shift three Chinese power plants in Sahiwal, Karachi, and Hub to coal from Pakistan’s Thar region rather than the imported one.