Nepra has asked PM Shehbaz Sharif to set up a coal authority to deal with power consumption imports. This request comes after a debate on Afghan and non-Afghan coal purchases on a spot basis. A result of this suggestion could mean that coal purchases would commence at the earliest and cheaper energy could be generated.
The meeting also entailed a discussion on importing coal from Afghanistan in rupees and reducing import restrictions. Earlier, it was noted that independent power producers face problems in coal import due to restrictions and the absence of payment mechanisms. Therefore, managing imports through the coal authority will be good to facilitate these manufacturers. As a result, energy output may increase and prices may become adequate. However, these developments raise major concerns over high-emission import mechanisms. Likewise, procuring coal from the international market might be cumbersome with already struggling forex reserves and a balance of payments crisis at hand.
Already, fossil fuels occupy a great proportion of Pakistan’s energy mix. With 64 percent dedicated to non-renewables, renewable energy is under-researched and underutilised. Currently, it accounts for only 4 percent of the mix and plans to increase the country’s capacity seem far-fetched. Having been slow on the renewable uptake, however, it may take time now to make moves to expand renewable capacity. Therefore, considering that the fossil fuel sector is important for the 50 million population, this development can at least help make energy and access to electricity affordable and ample.
While it is understood that the objective of the public hearing was to facilitate coal suppliers and promote competition for cheaper supplies, a country on the front lines of the climate disaster must recognise the increasing human cost of fossil-fuel expenditure. Therefore, future meetings on the topic must include plans to include a wing for ideation on fossil fuel alternatives.