Questions Raised Over Utilisation of Thar Coal Royalties in Sindh

The Sindh government is facing increasing scrutiny over the management and utilisation of royalty funds generated from the Thar coal project, seven years after the commencement of commercial operations in the region. Despite significant earnings, the process for allocating these funds remains unresolved, with officials acknowledging the absence of a formal mechanism to ensure their effective use.

The provincial energy secretary has conceded that no specific system has yet been devised for the utilisation of royalties derived from Thar coal. This lack of clarity has led to concerns over transparency, as the exact amounts collected through both royalty and Corporate Social Responsibility (CSR) funds are not publicly verified or clearly documented.

Tharparkar district, which is home to an estimated 175 billion tonnes of coal reserves, has often been highlighted as a key asset for Pakistan’s energy sector. Political leaders have described the region's potential as comparable to major global energy reserves. However, local communities and opposition members have questioned whether the promised benefits are reaching the intended recipients.

Member of the National Assembly Dr. Mahesh Kumar Malani stated that the ruling party is prioritising the establishment of a transparent system to ensure that local residents benefit from the project. He emphasised the need for improved access to clean water, healthcare, and education in the area, suggesting that these should be the focus of royalty spending.

Meanwhile, opposition figures have raised questions regarding the use of CSR funds, calling for greater oversight and accountability in their distribution. The lack of publicly available data on both royalties and CSR allocations has fueled concerns about whether the funds are being used effectively to address the needs of Tharparkar’s population.

As the debate continues, stakeholders are urging the Sindh government to introduce clear policies and transparent mechanisms for the management of Thar coal royalties, with the aim of ensuring tangible improvements in the lives of local communities.