Thar ‘Coal-to-Fertiliser’ Project will create thousands of Jobs: CM Sindh

KARACHI: The Chief Minister of Sindh, Syed Murad Ali Shah, has said that the flagship Thar Coal-to-Fertiliser (C2F) project will reduce reliance on imported fertiliser, create jobs, generate exports and add value to the country’s indigenous coal resources.

The $1.12 billion Coal-to-Fertiliser (C2F) project, a Thar coal-based urea plant being executed by Fauji Fertiliser Company (FFC), is designed to utilise Thar’s indigenous coal reserves to strengthen Pakistan’s fertiliser security and reduce import dependence.

The chief minister reviewed the progress and finalised the strategic roadmap for the initiative during a meeting held at the Chief Minister’s House.

A delegation led by FFC Chief Executive Officer Jahangir Piracha briefed the chief minister on the technical, financial and environmental aspects of the project.

According to FFC officials, the project reached a significant milestone in November 2025 with the completion of its Bankable Feasibility Study (BFS), prepared by international consultants. It has now entered the front-end engineering design (FEED) and project agreements phase.

Financial close is targeted between late 2026 and 2027, with commercial operations expected to begin in January 2031.

Describing the initiative as a “game changer”, FFC said the C2F project will produce 717,000 tonnes of urea annually, with output evenly split between domestic consumption and exports. Annual urea exports are expected to generate revenues of up to $260 million.

The project is expected to create more than 3,500 direct jobs and approximately 7,000 indirect jobs. It is also projected to generate approximately $5.5 million annually in royalties for the Sindh government through the extraction of about 2.1 million tonnes of coal per year.

Chief Minister Murad Ali Shah said that, to ensure project viability, the Sindh government will continue to facilitate key requirements, including the allocation of 12 cusecs of water from Makhi Farash, land for the plant site, and an employees’ residential colony in Islamkot.

He reaffirmed the provincial government’s full commitment to the project, terming it strategically vital for Pakistan’s food security, industrial growth and economic stability.

The chief minister added that sustainable industrial development and strict environmental compliance will remain key priorities as the project moves toward execution.