Pakistan lures Chinese investment in Thar coal

International firms confirm presence of huge coal reserves.

KARACHI: Pakistan seeks Chinese investment in Thar coal and if the country succeeds in doing so, it will be a huge step forward in developing coal projects, said Ajaz Ali Khan, Managing Director Thar Coal and Energy Board.

“We will try to seek Chinese investment in the upcoming meeting of the energy working group in Beijing,” said Khan, while speaking to the audience, after giving a presentation on Thar coal to businessmen of the Karachi Chamber of Commerce and Industry (KCCI) on Wednesday.

Replying to a question, he said that the World Bank had earlier refused to finance Thar coal projects, on concerns over environmental pollution and degradation, but has finally agreed to finance them.

However, the bank has placed a condition that Pakistan would have to prove that it is the cheapest available option that the nation has for electricity production.

During the presentation, Khan said: “Internationally renowned companies have confirmed the presence of huge coal reserves in Thar, so now we should all shun our doubts over the project. One of the biggest achievements of the Thar coal board is getting the approval of attractive fiscal incentives from the government, he said, adding “now we can lure companies to invest because we require huge investments like $3-4 billion for each project.”

Published in The Express Tribune, February 3^rd, 2011.