THE narrative around Thar coal is changing fast. What until recently was mostly a theoretical resource prospect has begun to look like a working part of Pakistan’s power mix and the early results are forcing a rethink about energy strategy, industrial competitiveness and fiscal resilience. Between noticeable drops in fuel costs, growing generation share and rising provincial claims of foreign exchange savings, local lignite is no longer just a policy talking point; it is a real-world experiment with tangible winners. By March 2025, local coal had captured roughly 17% of thermal generation and helped push average fuel costs down to about Rs12.2 per unit from Rs16.8 a year earlier, according to recent reports. Provincial authorities now claim cumulative foreign exchange savings measured in the hundreds of millions. If accurate, these figures point to an unexpectedly fast payoff from policies encouraging domestic off-take. These are not trivial shifts; lower fuel costs feed directly into cheaper electricity for industry and reduced import pressure on the state, resulting in a more predictable base-load profile for planners.

The headline figures mask a deeper reality. Thar’s vast lignite reserves, estimated at 175.5 billion tonnes, promise energy independence, jobs and reduced coal imports. But turning this geological potential into lasting........

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