Port Qasim EPC power station

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Port Qasim EPC power station is an operating power station of at least 1320-megawatts (MW) in Port Qasim, Sindh, Pakistan.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Port Qasim EPC power station	Port Qasim, Sindh, Pakistan	24.7845, 67.36939 (exact)

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Unit-level coordinates (WGS 84):

• Unit 1, Unit 2: 24.7845, 67.36939

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year
Unit 1	Operating	coal: unknown	660	unknown	2017
Unit 2	Operating	coal: unknown	660	unknown	2018

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Unit 1	Port Qasim Electric Power Co Ltd [100%]	Power Construction Corporation of China Ltd [51.0%]; Al-Mirqab Capital Co [49.0%]
Unit 2	Port Qasim Electric Power Co Ltd [100%]	Power Construction Corporation of China Ltd [51.0%]; Al-Mirqab Capital Co [49.0%]

Project-level coal details

• Coal source(s): imported

Background

The Port Qasim EPC power station comprises of two units of 660 MW each. It was proposed by Port Qasim Electric Power Company, a joint venture of PowerChina (51%) and Al Mirqab Capital (49%), put together by former Ehtesab Bureau chief Saifur Rehman. In May 2015, Dongfang Electric Company (DEC), including Dongfang Turbin, Dongfang Electric Machinery, and SEPCO III signed an equipment supply agreement for the construction of the plant, as part of the China-Pakistan Economic Corridor project.

In July 2014, Sinohydro Holding Company of Hong Kong and a Qatar-based investment firm were granted environmental clearance for the 1,320 MW coal plant in Karachi. Two 660-megawatt power generation units were set to be installed under the project, at a total estimated investment of US$1.95 billion. According to the Environment Impact Assessment (EIA) report of the project, the estimated annual rate of coal consumption would be 4.6 tonnes and about 310,061 tonnes of fly ash and 54,871 tonnes of bottom ash would be produced annually.

In February 2015, the National Electric Power Regulatory Authority (Nepra) approved a US$0.8 cents per unit upfront levelised tariff for the power plant over 30 years.

In April 2015, China Daily reported that that Sinohydro Resources, a subsidiary of Power Construction Corp. of China Ltd. (commonly known as Power China) had signed a joint venture agreement for the project with Al Malaki Group of Qatar. Under the agreement, the venture was set to be a 51:49 arrangement, with Sinohydro owning the larger share. The project would include the construction of a new port for coal delivery. The project was part of China's "One Belt, One Road" initiatives.

The Pakistan Executive Committee of the National Economic Council approved the project in May 2015. The project was estimated to take four years.

Construction began on May 6, 2015, and was scheduled to last 42 months; as of July 2016, however, Unit 1 was expected to go online by Q4 2017, and Unit 2 by Q1 2018, well ahead of schedule. The project would cost US$2.1 billion.

In November 2017, Unit 1 was inaugurated by Pakistan Prime Minister Shahid Khaqqan Abbassi.

Unit 2 began commercial operation in April 2018.

In July 2018, the National Accountability Bureau (NAB) launched inquiries into alleged corruption at Port Qasim EPC power station and Sahiwal power station.

Between 2018 and 2021, at least five system blackouts related to the plant have occurred. They were reportedly due to faults causing the transmission lines to trip.

In April 2022, management of the project stated that the total payment due in tariff payment had reached $446 million USD and that the due amount entitled Port Qasim EPC to suspend the plant's operation under the PPA. As a major project in the China-Pakistan Economic Corridor, the plant was seeking support from the Government of Pakistan, the Central Power Purchasing Agency-Guaranteed, and the Chinese Embassy. The delay in payment was causing a "huge shortfall and loss" for the power station and could be exacerbated by rising global coal prices seen in mid 2022. The situation seems to be continuing as of December, 2022.

The plant generated 7478 GWh of electricity in the year ending June 2022, and 8372 GWh in the year ending June 2021.

In December 2022, electricity production at Pakistan's three power stations operating on imported coal (Sahiwal power station, Port Qasim EPC power station and Hubco power station) fell to a five-year low. The slump was due to high prices; quality coal was averaging $253.83 per ton in 2022, compared to $114.24 per ton in 2021 and $59.91 per ton in 2020.

In March 2023, Port Qasim Electric Power Co. reported that the power station was at an immediate risk of shut down due to the Government of Pakistan's default on financial obligations. Another source reported that the company had already shut down both units at the power station, as the outstanding foreign exchange requests led to the coal supplier stopping shipments after January 2023.

In July 2023, the NAB closed their investigation into Port Qasim EPC power station and Sahiwal power station, which allegedly caused an annual combined loss of Rs. 175 billion (US$617 million) to the national exchequer.

In September 2023, the insurer of the power station, China Export & Credit Insurance Corporation (Sinosure), expressed that they were "highly concerned about the current operational status of the plant." Sinosure reportedly asked the government to arrange an agreement among the Private Power and Infrastructure Board, Central Power Purchasing Agency, and power station owners to resolve payment issues.

Also in September 2023, the interim Pakistan government approved the allocation of 56 billion Pakistani rupees (US$188 million) to construct a 105-km-long railway connecting the Thar coal fields to Port Qasim. The railway line would enable coal power plants at Port Qasim to burn Thar lignite rather than rely on imported coal. The Sindh provincial government, which had promoted the use of the Thar lignite fields, approved the railway in August 2023.

As of December 2023, Port Qasim EPC power station had reportedly had 82 days of "non-availability". The power station reportedly operated at 18% capacity during 2023-24.

In October 2024, the CEO of Port Qasim Electric Power Company issued a warning to the Government of Pakistan, stating that operations at the power station would be shut down if an outstanding debt of Rs 88.2 billion (US$317 million) was not paid to the company.

In March 2025, Port Qasim Electric Power Company again warned the government that operations could be suspended due to outstanding debts. The total debt was listed as Rs 93.5 billion.

Potential conversion to domestic coal

In April 2024, the government of Pakistan announced their intent to convert coal plants currently using imported coal to run on domestic coal. This reportedly included three plants backed by Chinese companies – Port Qasim EPC power station, Sahiwal power station, and Hubco power station. Pakistan's Prime Minister had directed the Ministry of Planning to raise their interest in converting these plants to run on domestic coal with China's National Development and Reform Commission. Pakistan estimated that converting the three plants would save US$800 million on the cost of coal.

In July 2024, a delegation from Pakistan was expected to visit Beijing and seek approval from Chinese coal plant owners to switch from imported coal to domestic Thar lignite. The proposal follows an agreement with the International Monetary Fund for a US$7 billion, 37-month loan program to avoid Pakistan defaulting on existing loans. Later in July, the Chinese government reportedly agreed to Pakistan’s request to convert the Hubco power station, Sahiwal power station, and Port Qasim EPC power station to domestic Thar coal. Part of the conversion process will require Pakistan Railways to build a 105 km track connecting the Thar coal mines to the existing railway at New Chhor in Sindh province, as well as an 18 km spur line to Bin Qasim and Port Qasim. The proposed line would have capacity for 10 million tonnes of lignite a year. The Pakistan government and the Sindh provincial government were reportedly planning to split the cost of the 58 billion-rupee (US$210 million) railway project.

In August 2024, Pakistan’s Ministry of Energy established a committee to prepare joint bankable technical and financial feasibility studies on converting CPEC power plants from imported coal to domestic Thar lignite. In a meeting with Chinese officials, Pakistan suggested financing the plant conversions could be done by local banks and not affect current loan agreements with Chinese banks. However, reporting from September 2024 indicated that Pakistani banks were reluctant to finance the conversions to domestic coal. An anonymous bank official reportedly said that banks were concerned about the pollution from coal projects and the central bank preferred to finance renewables projects.

In March 2025, a dispute between Awan Trading and Lucky Commodities centered around a coal supply agreement for Port Qasim EPC power station.

Financing

• Source of financing: US$1.564 billion in debt from Export-Import Bank of China

The project was reported to have cost approximately US$2.085 billion. The equity/debt ratio of the project was 25:75. The Import-Export Bank of China (China EXIM Bank) provided the debt finance.

In June 2019, it was reported that the 1,320 MW coal plant was facing financial difficulties just a year after operations began due to rising debt and the soaring cost of imported coal. Al Mirqab Capital chairman told the media that his company was facing “payment of arrears” to the tune of PKR 21 billion (US$133 million).

In January 2021, Asia Times disclosed that the Port Qasim Electric Power Company Limited had inflated their set-up costs. A committee found overpayments of 483.64 billion Pakistani rupees (USD 3 billion) to several companies over the course of three years.

Opposition

The project was opposed by local residents, who said the EIA report lacked details about coal ash disposal and an emergency plan, which experts said was necessary for projects located in a disaster-prone area like the coast.

In October 2014, the Pakistan Fisherman Forum protested against the government’s plan for Port Qasim power plants. These protestors included the coastal community people of Karachi, a city in Pakistan. They called the power plant “dirty energy” and a threat to the marine ecology and human life among coastal villages. These protests included a rally that was part of week-long activities to demand safe energy for the people of Karachi.

In April 2016, Qazi Ali Athar, an environmental law attorney, filed a petition in the Supreme Court of Pakistan for Rabab Ali against the Federation of Pakistan & Another. The petition highlighted how the actions of the Federation, such as the Port Qasim plant, were increasing CO2 emissions in the atmosphere, and that the citizens of Pakistan had a “Right to Life” under the “Doctrine of Public Trust.”

In January 2024, an article titled "Closing coal plants early makes economic sense in Pakistan" highlighted Port Qasim EPC power station.

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.