Pakistan has turned to imported coal from other sources as coal from Afghanistan has become costlier in recent months, data from Pakistan International Bulk Terminal Limited (PIBTL) showed.
Coal imports from Afghanistan have fallen while imports from other countries have increased. The PIBTL terminal moved a record-breaking 493,000 tons of coal in the first 16 days of January 2024, the greatest half-month coal shipments in two years.
PIBTL handled about 1.9 million tons of coal during the first half of the fiscal year, with an expected 1.8 million tons handled during the second quarter. The rising trend is likely attributed to cheaper imported coal and the rupee’s rise versus the dollar. PIBTL charges roughly Rs. 2,000 per ton for coal unloading at Port Qasim, whereas upcountry coal transportation via trucks costs between Rs. 6,500 and Rs. 7,000 per ton.
Following an earlier border dispute with Afghanistan, it is estimated that 70 percent of cement businesses’ coal demand is now met by sea-borne coal via PIBTL.
After paying port charges and other fees, PIBTL’s handling margin is approximately $4 per ton for each shipment. Due to rising Afghan coal prices and trade restrictions, PIBTL now handles the majority of imported coal for cement plants.
During 1QFY24, PIBTL reported a net profit of Rs. 580 million, compared to a loss of Rs. 440 million in the same period last year. The gross margin stayed at 40 percent in the first quarter, compared to 28 percent in 1QFY23.
