Resolving energy crisis with China s help

Coal is china’s main source of energy providing around 70% of its total demand. It has launched Eleventh Five Year Plan 2006 — 2010 that establishes a fundamental energy strategy based on coal that includes production of coal fired electricity. China’s rocketing economy has driven the coal industry into a new era of efficient utilization. In pursuance of this strategy China will consume about 2.2 billion tons of coal by 2010. During the last few decades China has achieved enviable technological breakthrough in coal powered thermal electricity projects. Pakistan can benefit from its experience and expertise in utilizing its own coal reserves. Total coal reserves in Pakistan are estimated at 185 billion tonnes out of which 176 billion tonnes are located in Thar District of Sindh alone.

Pakistan’s present installed capacity of both hydel and thermal electricity generation is about 19500 MW whereas it has a hydel potential of more than 40,000 MW. Now when the oil import bills have started to rise, it is most opportune time to develop and utilize sources of indigenous energy and eventually reduce dependency on imported oil. To give boost to coal powered electricity, Sindh Coal Authority and China’s Machinery and Trade Corporation have entered into an agreement for geological survey of Sindh coal fields for installation of a power plant there.

Energy is the most important input for economic development. There is need for huge investments in energy sector. No major oil fields have been discovered in Pakistan during the last three decades. The need of the hour is to step up exploratory efforts to discover new reserves of oil and gas. Hydro-electric power generation can meet about one third of Pakistan’s energy needs but this sector is adversely affected by periodic droughts. That is why coal based projects a. being offered to foreign investors. Besides $5 billion worth of thermal power plants are being provided to tide over immediate energy requirements.