In 2004 PMDC 383,725 t of coal .The first assessment of coal reserves of Pakistan was made in 1950 at 500 million tones in all four provinces, revised to 824 million tonnes with increased discoveries in 1986. The coal resources were estimated at 9 billion tonnes in 1989 (Kazmi & Siddiqi 1990). The latest estimates indicate the measured coal reserves at over 194 billion tonnes. More than 193 billion tonnes occur in the province of Sindh, out of which 186 billion tonnes belong to Thar Coal Deposits (Sindh). Sindh province is the main source of thermal power for Pakistan, in future. Thar coal field is the largest in Pakistan, contains lignitic coal with sulphur at 1.5%, ash 15% and moisture 45%. A contract has been signed between Government of Pakistan and a Chinese public company for the development of one evaluated coal block at Thar Coal Field and commissioning power plant. Government of Sindh has also signed an MOU with an Australian firm for in-situ gasification and commissioning of 1200 MW power generation plant on another evaluated coal block.

Lakhra Coal Development Authority (LCDC) was incorporated as a public limited company in 1990. The company is a joint venture of Pakistan Mineral Development Corporation (PMDC), Pakistan Water and Power Development Authority (WAPDA) and Government of Sindh. Its prime responsibility is development and commercial exploitation of Coal deposits of Lakhra Area, Sindh. LCDC holds a mining lease of 621 sq. kms having proved reserves of 150 million and estimated 2000 million tonnes. It has mined about 329,198 tons of coal during the year 2001-02 out of which about 221309 tons was supplied to WAPDA. GOP has decided to privatize the mines and the power plants.