The Minister for Power, Khurram Dastagir Khan, stated that there had been major progress in coal imports from Afghanistan, and the 1,320 MW Sahiwal Coal Power Project had reached an agreement with a private Afghan entity for coal supplies with the facilitative roles of the governments in Islamabad and Kabul.
He mentioned that three trains full of Afghan coal have already been delivered to the Sahiwal plant.
The minister also revealed that the Government of Pakistan is unaware of the details of the agreement, but they will be available once they are submitted to the National Electric Power Regulatory Authority (NEPRA) for tariff approval.
He confirmed that the Government of Afghanistan had increased duty on coal exports from $90 to $200 per ton but insisted that it is still cheaper than imports from elsewhere as coal prices had gone beyond $400 per ton from $90 a few months ago.
Another advantage is that Pakistan is paying for Afghan coal in rupees and is saving foreign exchange as well, Minister Khan added.
He said that a delegation from the Government of Pakistan, comprising senior officials, will visit Kabul for discussions about how to permanently streamline coal supplies. Pakistan will request the interim Afghan government to ensure round-the-clock border operations to ensure uninterrupted coal supplies, particularly at night, he explained.
The minister added that Afghanistan’s priority is the maximum clearance of their perishable items like fruits and vegetables in the daytime, and coal operations can be handled throughout the night.
He declined to comment on some recent adverse comments from an Afghan minister and said that he will instead advocate that bilateral trade relations between neighbors were the best relationships for the people of all sides and improved linkages then put a positive impact on foreign relations.
Coal supply, he said, is a major transaction that had support from both governments. This is a business-to-business arrangement between independent power producers (IPPs) and Afghan coal suppliers. Minister Khan highlighted that the Pakistani delegation will also raise the issue of a hike in export duties with Afghan authorities.
Furthermore, the matter of the 1,320 MW China-Hubco Coal Power Plant is also under discussion for the procurement of Afghan coal, and it would soon be run on imported coal from next door.
The minister also stated that the National Electric Power Regulatory Authority (NEPRA) had determined an increase of Rs. 7.91 per unit in the national electricity price through tariff rebasing, and the Economic Coordination Committee of the Cabinet had decided to implement it in three phases of Rs. 3.50 per unit in July and August each and 91 paise in October but the latter is yet to approve its implementation.
He said the tariff adjustments would take place, but rates would not be increased for lifeline consumers and massive subsidies would be given to them.
Minister Khan revealed that the government will add another 5,000 MW to the national grid during the current fiscal year. There will be no more capacity addition in the future beyond these projects, except in hydro, solar, wind, local coal, and other domestic resources, he concluded.
