Sahiwal Coal Power Plant uses 200,000 to 300,000 tons of coal monthly to produce 1320 megawatts of electricity.
The caretaker government’s Energy Minister, Mohammad Ali, wrote a letter calling for an investigation into irregularities in coal procurement for the Sahiwal Coal Power Plant. The letter indicated that coal was purchased from two suppliers at double the market price.
Senior journalist and analyst Wusatullah Khan, speaking on a private TV program, claimed that suppliers were contracted for a year at prices 50% higher than the market rate. Other suppliers protested, claiming they could provide coal at a lower price. Due to mounting pressure, the regulator allowed spot bidding, meaning coal would be purchased from the supplier at the lowest rate.
Following spot bidding, coal prices decreased, benefiting consumers. From July to December of the previous year, coal was procured at 40% lower prices, reducing the electricity cost from the Sahiwal Coal Power Plant from 28.50 PKR to 18.30 PKR per unit. This provided approximately 35% relief to electricity consumers. However, the suppliers who won the spot bidding were subsequently harassed with various excuses, such as shipment delays and unnecessary requisitions, to drive them out.
Once these suppliers were sidelined, the favoured companies were awarded annual contracts again. The suppliers complained to the Chinese power plant management, which responded that the Power Division Secretary dictated from whom and at what rate to purchase coal.
Wusatullah Khan revealed that even if the Sahiwal Coal Power Plant used just 200,000 tons of coal monthly, the favouritism resulted in a national loss of 4 billion PKR per month, totalling 48 billion PKR annually in overpayments. Before leaving office, the Energy Minister ordered an investigation into this irregularity, mandating a report within 14 days. However, the issue seems forgotten after the minister’s departure.
