Governance of coal resources in the Sindh province (SE-Pakistan): an evaluation of challenges and reforms

Abstract Pakistan is endowed with immense mineral resources, particularly soft coal (lignite) deposits in the Sindh province (SE-Pakistan), which boast an estimated 185 Gt, with a significant portion of approximately 175 Gt located in the Thar region. These deposits have the potential to address the country’s energy crises, drive economic growth, support urbanization and alleviate poverty. However, Thar’s coal remains considerably underutilized, as evidenced by its minimal contribution to Pakistan’s minerals-to-GDP ratio. This raises pressing questions: how can Pakistan fully leverage its significant coal potential? And what strategies can Pakistan adopt to maximize substantial foreign direct investment in the coal mining sector? To address this, Pakistan’s mineral policy and governance system is critically examined, with a particular focus on province Sindh’s regulatory framework governing coal, concerned social and environmental obligations and mining operations. The research seeks to identify weaknesses within the existing policy and regulatory framework governing Sindh’s coal sector and proposes actionable reforms centered on transparency, inclusivity and sustainability, with the aim of establishing a sustainable coal governance system for long-term economic growth in Pakistan. The study concludes that regulatory fragmentation, outdated geological data, lack of investor protection and insufficient community engagement are major barriers to sectoral growth and foreign investment. A comprehensive and cohesive “National Thar Coal Policy” is urgently needed to streamline inter- and intra-agency coordination, enhance transparency in licensing and institute robust social and environmental safeguards. Implementing these reforms will improve investor confidence, promote responsible resource development and help realize the full economic potential of Pakistan’s coal sector while ensuring long-term sustainability and socio-economic benefits.