Islamabad: In a significant move within Pakistan’s energy sector, the Competition Commission of Pakistan (CCP) has approved International Electric Power (Private) Limited’s acquisition of a 11.9% stake in Sindh Engro Coal Mining Company (SECMC). This development marks a pivotal shift in the dynamics of the coal mining industry in the region.
According to Competition Commission of Pakistan, International Electric Power, newly established in March 2024 specifically for this transaction, is a collaboration among Liberty Power Holding, Soorty Enterprises, and Procon Engineering. The acquisition involves shares from Engro Energy Limited, a key subsidiary of Engro Corporation that holds various energy investments across Pakistan. Engro Corporation’s strategic divestiture allows International Electric Power to extend its reach into the coal mining sector, a critical area for Pakistan’s energy production and economic development.
The CCP’s review of the transaction focused on its impact within the coal mining market of Pakistan, particularly noting that SECMC’s operations and market share would not be adversely affected. SECMC, which operates under the Thar Coal Energy Board and the Government of Sindh’s regulatory framework, plays a vital role in setting coal prices for Thar-coal based power projects.
This acquisition is expected to enhance Pakistan’s energy security by bolstering domestic coal production capabilities and reducing the reliance on imported fuels. The move is seen as a strategic enhancement to the country’s energy infrastructure, supporting large-scale power generation projects in the Thar region, which are crucial for sustained economic growth.