Reuters exclusively reported that Pakistan plans to quadruple its domestic coal-fired capacity to reduce power generation costs and ease a crippling foreign-exchange crisis. Khurram Dastgir Khan, Pakistan’s Energy Minister, confirmed to Reuters on Monday that Pakistan will not build new gas-fired plants in the coming years. A shortage of natural gas, which accounts for over a third of the country’s power output, plunged large areas into hours of darkness last year. A surge in global prices of liquefied natural gas (LNG) has made it unaffordable for Pakistan. 

Market Impact

Pakistan’s foreign exchange reserves held by the central bank have fallen to $2.9 billion, barely enough to cover three weeks of imports. It was not immediately clear how Pakistan will finance the proposed coal fleet, but Dastgir said setting up new plants will depend on “investor interest,” which he expects to increase when newly commissioned coal-fired plants are proved viable.

Article Tags

Topics of Interest: Energy

Type: Reuters Best

Sectors: Commodities & Energy

Regions: Asia

Countries: Pakistan

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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