This paper examines the role of religious identity in the context of a coal development project in District Tharparkar, Pakistan. Research was conducted in six rural communities located in the vicinity of the coal project. The results obtained are important for two reasons. First, they provide insights into the heterogeneous composition of communities based on religious identity, which explains contrasting perceptions toward project development. Second, they entail a practical dimension that suggests that in the process of assessment, development and management of coal resources, differences related to religious and community identity must be recognized and taken into account to minimize community conflict.