Sindh’s Chief Minister has reviewed a strategic roadmap for a $1.12 billion Thar coal-based urea facility, a flagship initiative projected to become operational by January 2031 to significantly reduce Pakistan’s reliance on imported fertiliser and bolster the national economy.
According to Sindh CM House information today, the venture, being executed by Fauji Fertiliser Company (FFC), aims to utilise indigenous coal reserves from Thar to enhance the nation”s fertiliser security. During a briefing at the CM House, a delegation led by FFC Chief Executive Officer Jahangir Piracha updated Chief Minister Syed Murad Ali Shah on the technical, financial, and environmental aspects of the Coal-to-Fertiliser (C2F) initiative.
The meeting was also attended by Principal Secretary to the CM Agha Wasif, Energy Secretary Shahab Ansari, and Thar Coal Managing Director Tariq Shah. The FFC team included Chief Technical Officer Syed Aamir Abbas and other senior officials.
The FFC delegation reported that the undertaking has reached a key milestone with the finalisation of its Bankable Feasibility Study in November 2025. The initiative has now progressed to the front-end engineering design and project agreements phase.
According to the outlined timeline, the project targets financial close between late 2026 and 2027, with the Commercial Operations Date (COD) anticipated for January 2031.
FFC officials described the initiative as a potential “game changer,” projecting an annual production of 717,000 tonnes of urea. This output is planned to be split evenly between domestic markets and exports, with annual overseas sales expected to generate up to $260 million in revenue.
The large-scale development is also forecast to have a substantial employment impact, creating over 3,500 direct and approximately 7,000 indirect job opportunities. Furthermore, it is expected to generate an estimated $5.5 million in annual royalties for the Sindh Government from the extraction of around 2.1 million tonnes of coal per year.
The integrated plant is designed to convert Thar coal into synthesis gas through gasification, which will then be processed to manufacture ammonia and urea. Phase-I will include the production of bulk and bagged urea, 10,400 tonnes of sulphur, and 717,000 tonnes of surplus CO2 for other industrial applications.
A second phase is planned, which envisages an expansion of urea capacity and the introduction of green ammonia production.
More than $50 million has been allocated for environmental protection measures. These include advanced control systems for NOx, SOx, and PM2.5 particulates, a zero liquid discharge system using reverse osmosis, and a waste-to-value process that will yield industrial-grade gypsum, sulphur, slag, and fly ash.
Chief Minister Murad Ali Shah affirmed the provincial government’s full support for the venture, which he termed strategically vital for Pakistan’s food security and economic stability. “This project is of immense importance not only for Sindh but for the entire country,” he stated.
To ensure the plant’s viability, the Sindh government will facilitate the allocation of 12 cusecs of water from Makhi Farash and provide land for the plant site and an employees” residential colony in Islamkot, in accordance with applicable regulations.
The Chief Minister stressed that sustainable industrial development and strict environmental compliance would be central priorities as the project moves forward. Once operational, the C2F facility is expected to play a crucial role in strengthening Pakistan’s fertiliser supply chain and promoting a cleaner, value-added industrial use of local coal resources.