Pakistan Sees Dip In Afghan Coal Imports Amid Rising Costs, Turns to South African Supply

Pakistani media outlet International News reported on Tuesday that Pakistan's coal imports from Afghanistan have decreased in recent months.

This trend coincides with a rise in coal imports from South Africa, as indicated by official statistics. The report highlights the role of Afghan coal's increased pricing in this shift.

Data from the Pakistan International Bulk Terminal Limited (PIBTL) reveals a significant increase in Pakistan's coal imports from other countries in the first 16 days of 2024. This figure reached 493,000 tonnes, surpassing the import volumes of the same period in the previous two years.

Despite the Taliban's announcement last year to boost Afghanistan's coal extraction and export to meet ten percent of Pakistan's daily coal needs, the actual trade dynamics have evolved differently. The decrease in Afghan coal imports is a key factor driving the overall rise in Pakistan's coal imports during the early part of 2024.

Another significant contributor to this shift is the lowered price of coal from South Africa's Richard Bay coal terminal. The price drop from USD 116 per tonne to USD 98 made South African coal more attractive. South Africa, a major coal exporter to Europe and Asia, conducts all its coal exports via the Richard Bay coal terminal near Durban's port.

During the first half of the current financial year, the State-owned International Terminal Company managed the unloading of approximately 1.9 million tonnes of coal.

Quoting a brokerage firm, International News reports that importing coal from the Richard Bay terminal costs about 40,000 to 41,000 Pakistani rupees. In comparison, Afghan coal ranges from 50,000 to 52,000 rupees per tonne, reflecting a significant 25 percent price difference.