Assurances made in 2019 by PPP Co-chairperson Bilawal Bhutto-Zardari and Sindh Chief Minister Murad Ali Shah regarding the allocation of royalties from the Thar Coal project for Tharparkar district development in Sindh have not been honored, as reported by the Karachi-based Business Recorder. Despite collecting around Rs 50 billion in royalties between 2023 and 2025 and holding a significant stake in the Sindh Engro Coal Mining Company, the provincial government’s investment in the district falls short of expectations.
The report points out that the Annual Development Programme allocation for Tharparkar in FY2024-25 was approximately Rs 10 billion, significantly lower than the revenue generated by the region. Despite claims of infrastructure investments by Sindh government officials in roads, hospitals, and schools, Tharparkar remains one of the poorest districts in Pakistan, with a poverty rate of 76.9% according to a 2025 World Bank report.
Notably, the Thar Foundation, tasked with welfare initiatives in the district, operates with an annual budget of Rs 750 million. However, compared to the substantial earnings from coal reserves, this amount represents only a fraction of the total value extracted from the land, highlighting a significant disparity in resource allocation.
The absence of a clear legislative mechanism to direct funds from the Thar Coal project to Tharparkar for development purposes underscores a fundamental institutional failure. The report emphasizes that without a transparent and binding framework, the promise of utilizing the district’s coal wealth for the benefit of marginalized communities remains unfulfilled, reflecting a critical oversight on the part of the Sindh government.
