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Chinese power plant operators in Pakistan will be asked to use coal from Pakistan’s Thar region rather than imported coal, starting this month, Pakistan’s power minister said on Sunday.

In an upcoming trip to Beijing, Pakistan’s delegation will also attempt to re-profile the country’s energy sector debt, Awais Leghari, head of the energy ministry’s power division, told Reuters.

China has a significant presence in Pakistan’s energy sector, setting up more than $20bn (145.46bn yuan) worth of energy projects in the neighbouring country.

“One of the key purposes of going along is the conversion of our imported coal units to the local coal. That would have a huge impact on the cost of energy, of power in the near future. So that is one of the biggest [items on the] agenda,” Leghari said in an interview with Reuters.

He added that changing the source of coal would benefit Chinese-owned power plants in Pakistan by reducing pressure on Islamabad’s foreign exchange reserves, making it easier to repatriate dividends and offering improved returns in dollar terms.