KARACHI: Member of the Provincial Assembly of Sindh, Surendar Valasai, has moved a resolution in the Sindh Assembly demanding Net Hydel Profit (NHP)-style financial benefits for Sindh from electricity generated through Thar coal, arguing that the province cannot continue to bear the environmental and social costs of resource extraction while the economic benefits are distributed nationally.
According to Pakistan Peoples Party, Valasai has demanded that the Federal Government negotiate a permanent, transparent, and equitable financial arrangement with Sindh, recognising Thar coal's contribution to Pakistan's electricity generation and national energy security.
The financial implications of the demand are substantial. Khyber Pakhtunkhwa and Punjab currently have notified interim NHP rates of Rs1.548 and Rs1.474 per unit respectively, according to NEPRA's FY2025-26 tariff petition. The Federal Power Division reported that KP received Rs33 billion and Punjab Rs23 billion in NHP payments during FY2025-26.
Meanwhile, Thar-coal-based power projects generated approximately 16.447 billion units of electricity during FY2025-26, including generation attributable to Thar coal at plants using blended fuel. Applying the existing KP rate of Rs1.548 per unit as an illustrative benchmark would translate into approximately Rs25.45 billion annually for Sindh. At Punjab's rate of Rs1.474 per unit, the corresponding amount would be approximately Rs24.24 billion.
These calculations demonstrate the potential scale of an NHP-style financial arrangement for Sindh. The final rate and payment mechanism would, however, require negotiations and formal approval by the relevant federal and provincial authorities.
Valasai maintained that Thar's coal resources belong to the land and people of Sindh, and their exploitation must translate into tangible economic benefits for the province, particularly the communities of Tharparkar that bear the direct consequences of mining and related industrial activities. He argued that the existing royalty arrangements should not be treated as a substitute for a separate financial benefit linked to electricity generation. Sindh deserves a transparent mechanism that recognises both its contribution to national energy production and the environmental and social burden borne by its people.
The proposed resolution seeks an NHP-style financial mechanism based on electricity generation, net financial returns or another mutually agreed formula between the Federal and Sindh governments. It also calls for taking up the matter before the Council of Common Interests and other appropriate constitutional forums.
Valasai has further proposed the establishment of a dedicated Thar Coal Development Fund, ensuring that additional financial benefits are directed towards drinking water, hospitals, educational institutions, roads, environmental rehabilitation, local employment and livelihood opportunities.
The resolution also demands annual audited disclosures of coal-based electricity generation, royalties, statutory revenues and additional financial benefits received, together with details of expenditure on development in affected areas.
Valasai emphasised that the demand is not intended to undermine national energy interests but to establish economic justice within the federation. He said that Thar should not be remembered merely for its coal reserves and electricity generation while its people continue to struggle for clean drinking water, quality healthcare, education, employment and basic infrastructure.
"If the natural resources of Sindh are powering Pakistan, Sindh must receive its fair financial return. The people of Thar cannot remain spectators to the wealth generated from their own land. National energy security must go hand in hand with provincial rights and local prosperity," he maintained.
The resolution seeks a clear federal-provincial understanding to ensure that the economic value generated from Thar coal translates into a sustained source of development finance for Sindh and, particularly, the people of Tharparkar.