Globally, oil, coal and gas account for more than 80% of the primary energy resources. International statistics show that coal is the most used energy resource for steam and power generation, with 41% of the global energy demand being met through this resource. Pakistan is ranked as the 69th country producing electricity using coal, meeting only 0.05% of its energy demands through this resource

Furthermore, about two thirds of the world’s steel is produced using coal. It is also expected that coal will become even more important in the years to come, mainly driven by demand from Asian countries, namely, China, Pakistan and India. Coal is a natural product and not homogenous in quality, though successful efforts have been made to commoditize at least part of the business. Application of new and advanced technologies increases the efficiency of coal power plants and reduces its impact on the environment.

Pakistan’s acute energy crisis has affected each segment of the society, ranging from textile to FMCGs and other manufacturing concerns.Gas reserves have decreased significantly, leading to a sharp decline in the share of gas in energy production from 52% in 2005 to 29% in 2014. The declining trend of natural gas in Pakistan will continue to further fall in the years ahead.

Since we operate in an extremely price sensitive market, coal is highly preferred as it is the cheapest source of energy today. Moreover, coal has a larger resource base and is more widely distributed across the globe, which is yet another advantage of using this resource.