The Asian Development Bank (ADB) will provide a $ 900 million loan to Pakistan for the country’s first coal-fired power generation plant at Jamshoro. The initiative will alter the energy mix, currently based on fuel, thereby bringing down the cost of electricity. The project is expected to be completed by 2018. The ADB assistance also includes five years of operation and maintenance support. New boiler technology coupled with emission control equipment would help keep the environment clean. Coal-fired projects have been criticized for increasing carbon dioxide levels in the atmosphere, with China shouldering the larger chunk of the blame. China has had the worst environmental hazards recently. The coal used in the Jamshoro plant will be a blend of 80 percent imported and 20 percent local coal. The Thar field is brimming with coal that could take care of Pakistan’s energy demand for years to come. Lack of technological know how had kept the country from making use of this abundant indigenous resource. The Thar coal is of low quality called lignite, requiring special processing before being ready for use in energy generation plants. The plant at Jamshoro would be a step forward in developing the use of Thar coal, and eventually making it an indispensible indigenous energy resource. Other power plants that would operate on coal are also under construction such as the Gadani Power Park Project. This project is aimed at generating 6,600 MW and has been started to meet the country’s growing industrial, commercial and domestic requirements of electricity. Pakistan’s energy deficit has grown over the years due to the mismanagement and bad planning of successive governments. The irony is that when countries the world over were switching from fuel-dependent energy production to cheaper alternatives such as coal, gas, etc, Pakistan was building its future on fuel-based energy. As oil prices spiralled upwards owing to various international crises such as 9/11, 2008’s financial crisis, wars in the Middle East, Pakistan’s dependence on fuel became cumbersome and the system collapsed under its own weight. The internal crisis in the country such as terrorism and corruption in government proved the last straw, with the result that as of today our foreign reserves are under strain to meet our oil needs adequately. Therefore we are in dire need of increasing gas, hydel and coal’s share in producing electricity. The country’s future is heavily dependent on the availability of reliable and affordable energy and the use of Thar coal is a welcome step in this direction. *