CM unveils roadmap for $1.12b Thar coal-to-fertiliser project

KARACHI:

Chief Minister Murad Ali Shah on Thursday unveiled the strategic roadmap for the country's flagship Coal-to-Fertiliser (C2F) initiative, describing the Thar coal-based urea project as vital for reducing reliance on imported fertiliser, generating employment and boosting exports.

The project, being executed by Fauji Fertiliser Company (FFC), envisages utilising indigenous coal reserves from Thar to strengthen the country's fertiliser security and add value to local resources. The chief minister was briefed on the progress during a meeting at the CM House by an FFC delegation led by its CEO Jahangir Piracha.

Officials informed the meeting that the $1.12 billion project has achieved a milestone with the completion of its Bankable Feasibility Study (BFS) in November 2025, prepared by internationally reputed consultants. With the BFS finalised, the project has entered the Front-End Engineering Design (FEED) and project agreements phase.

Under the proposed timeline, financial close is expected between late 2026 and 2027, while commercial operations are targeted to commence in January 2031.

Terming the initiative a "game changer," FFC officials said the plant will produce 717,000 tonnes of urea annually, with output evenly divided between domestic consumption and exports. Annual urea exports are projected to fetch up to $260 million in revenue.

The project is expected to generate more than 3,500 direct jobs and around 7,000 indirect employment opportunities.