KARACHI – Sindh Engro Coal Mining Company (SECMC) and Meezan Bank Limited signed an Islamic Facility Agreement to fund the Phase III mine expansion of the Thar Block II.
Under this arrangement, a syndicate comprising United Bank Limited, Askari Bank Limited, Sindh Bank Limited and Pak China Investment Company Limited, led by Meezan Bank Limited, will provide Islamic financing to scale up the coal production from the current 7.6 million tons per annum (MTPA) to 11.2 MTPA.
Under the continued leadership of the Government of Sindh (GoS), SECMC’s historic journey began in 2019 when it became the country’s first public-private partnership to demonstrate the commercial viability of Thar coal for power generation.
In 2022, SECMC expanded its operations to 7.6 MTPA, taking total power generation from Thar Block II to 1320 MW, and now, with Phase III underway, it aims to further strengthen Pakistan’s energy security by converting the 660 MW Lucky Electric Power Company Limited (LEPCL) power plant to Thar Coal.
Speaking on the occasion, Amir Iqbal, CEO of SECMC, acknowledged the support of the Government of Sindh, Meezan Bank, and all stakeholders involved. He said, “The Thar Block II development started as a bold idea and proved that indigenous coal could energise Pakistan. This financing and continued relationship with Meezan and other members of the syndicate takes us closer to our Phase III goal and brings us a step further in delivering low-cost electricity through domestic resources.”
He added, “It also marks a significant milestone in SECMC’s vision to energise Pakistan’s future through world-class, sustainable mining.”
Currently, SECMC is energising over 3 million households and has contributed to foreign exchange savings of approximately $1.6 billion since inception. Thar Coal Power plants’ consistent ranking is among the top positions on the economic merit order issued by National Transmission & Despatch Company (NTDC), making Thar coal the most cost-effective baseload fuel in the country.
