Pakistan’s power regulator, the National Electric Power Regulatory Authority (NEPRA), is unlikely to grant Port Qasim Electric Power Company Limited (PQEPCL) another extension for coal procurement under an interim arrangement, sources said, even after company representatives pressed officials for more time.
The 1,320-megawatt coal-fired plant at Port Qasim, Karachi, has sought a further two-month interim window. Sources say the request has been filed in writing following recent meetings with NEPRA, but there is no clear sign the Authority will agree.
Why the extension request is contested
The dispute sits on an open coal procurement process and bids that offer a discount of US$2.10 per metric tonne on South African-origin coal. That discount has been described as the highest PQEPCL has secured in its procurement history. Supporters of competitive bidding argue that accepting eligible, responsive offers at that level would better protect electricity consumers and make fuel buying more transparent.
PQEPCL is alleged to prefer continuing purchases from its existing supplier or suppliers at a comparatively lower discount, and to be delaying, withholding or cancelling the ongoing tender despite the South African offer. Those claims have not been independently established; the company’s own explanation and NEPRA’s formal ruling would be needed to settle the dispute.
An insider indicated NEPRA could instruct the company to complete open bidding and weigh eligible offers under the published terms, rather than favour arrangements that yield a smaller discount.
Official scrutiny and consumer costs
Concerns about alleged opacity in procurement have drawn wider attention. The Prime Minister’s Office has reportedly ordered an inquiry. The Power Division is said to worry that buying coal on commercially weak terms could raise costs that ultimately fall on electricity consumers. The National Accountability Bureau (NAB) is also active on power-sector issues and has set up a special directorate for the sector. The Federal Board of Revenue (FBR) has reportedly joined the matter in light of court orders.
Coal is a major fuel cost for this plant. Those costs feed into generation expenses and can influence electricity tariffs through the Fuel Charges Adjustment (FCA)—the periodic review that revises the fuel portion of power bills. Sources expect the procurement question to surface at NEPRA’s public hearing on the FCA for September 2026, scheduled for Thursday.
How the coal contracts are structured
Procurement documents require the seller to deliver coal on the agreed schedule. The buyer must give written notice of the total quantity needed at least 45 days before the expected discharge of a shipment. Coal arrives at the plant’s dedicated unloading jetty at Port Qasim.
Pricing depends on origin. South African coal is settled against the monthly average free-on-board (FOB) Richards Bay index—US dollars per tonne on a 6,000 kcal/kg net-as-received basis—published as the API4 Index for the month of the bill of lading. Indonesian coal is linked to the monthly average FOB Indonesia Coal Index on a 4,600 kcal/kg basis, published as the ICI3 Index for the matching bill-of-lading month.
NEPRA’s decision on the extension, the reported inquiry, and any steps linked to the FBR’s involvement will shape whether PQEPCL stays with existing suppliers or moves ahead with competitive bids that sources say could deliver a larger discount.
Aasan alfaaz mein
Port Qasim wale power plant ko koila khareedne ke liye dobara do mahine ki temporary ijazat chahiye thi. NEPRA is baar dobara mohlat dene ke qareeb nahi lag raha. Behtar discount wali South African coal ki offers pe sawal uthe hain, kyunki mehnga fuel aakhir mein aam logon ke bijli bill mein aa sakta hai. Ab regulator, inquiry aur sunwai se faisla clear hoga ke khareedari kaise aage badhegi.
