MONITORING (SW) – Pakistani Prime Minister Shehbaz Sharif approved import of super-critical quality coal from Afghanistan in rupees instead of dollars, saying the move will help the country save precious foreign exchange.
The Afghan Taliban already stepped up coal exports to Pakistan and increased duties on sales, official said, as the group aimed to generate more revenue from its mining sector in the absence of direct foreign funding, reported Express Tribune.
Premier Shehbaz expressed deep concern over the rising price of coal in the international market, saying it was the main reason for generating expensive electricity from coal-fired power plants in the country.
“The coal imported from Afghanistan in rupee terms will not only generate cheap electricity but also help save the country’s precious foreign exchange,” PM Shehbaz told the participants of the meeting.
The prime minister was informed that import of coal from Afghanistan, initially required only for Sahiwal and Hub power plants, would save more than $2.2 billion annually in the import bill.
The Pakistani premier also directed the Ministry of Railways to take all necessary steps to ensure prompt delivery of coal imported from Afghanistan to power plants. Surge in export of coal to Pakistan has led to shortages and price hikes in Afghanistan, traders told Salam Watandar.
A number of coal traders in Kabul told Salam Watandar that the price and export of coal have risen dramatically since the re-establishment of the Islamic Emirate. They add that now, compared to the past, the price of coal in the country has more than doubled and has damaged their business.
“500 to 600 trucks of coal go to Pakistan every day,” said Ahmadullah, a coal dealer. “The price of a ton of coal used to be 7,000 afghanis and now it has reached 17,000 afghanis.”
ENDS
