As per the vessel line-up data compiled by CoalMint Research, Pakistan has achieved its highest monthly non-coking coal imports in Mar’18, thriving on the development made under CPEC projects.
Pakistan’s non-coking coal imports have rebounded after falling in Feb’18, to reach its highest monthly total of 1,633,430 MT in Mar’18. Imports had increased 163% on the month from 620,547 MT in Feb’18, which was also 96% higher on the year compared with 831,600 MT in Mar’17.
Demand for imported coal has been boosted by the commissioning of the two new thermal power plants under the CPEC projects (China-Pakistan Economic Corridor). Besides, there has been steady demand from Pakistani cement firms as the country completes new infrastructure projects.
The Sahiwal Power Plant with nameplate capacity of 1320 MW (2 X 660 MW)has been fully operational since 2017, is largely dependent on South African coal for its operations.
While, the second thermal power plant at Port Qasim Karachi (2 X 660 MW) has witnessed one of its units been inaugurated in Nov’17, and the second unit is expected to begin its commercial operation in Jun’18. The power power plant had been taking a mix of both South African and Indonesian grades of coal.
However, in order to meet the rising demand for summer season, the power plants have even taken cargoes from Russia and Mozambique.
As a result of the enormous growth in monthly coal imports, the country has attained nearly one-third of the total coal imported in CY17, during the first quarter of CY18 (Jan’18-Mar’18).
Origin-wise Non-coking Coal Imports:
Pakistan’s Non-Coking coal import from South Africa increased 122% M-o-M to 1,027,570 MT in Mar’18, which was also 45% higher on the year compared with 708,810 MT in Mar’17.
Coal imports from Indonesia had also recorded growth on the monthly and yearly basis, market at 320,590 MT in Mar’18.
Pakistan has also received its first coal shipments in CY18, from Russia and Mozambique during the month.
| Country | Mar’18 | Feb’18 | Mar’17 | M-o-M | Y-o-Y |
| South Africa | 1,027,570 | 463,627 | 708,810 | 122% | 45% |
| Indonesia | 320,590 | 156,920 | 52,540 | 104% | 510% |
| Russia | 180,100 | – | 70,250 | – | 156% |
| Mozambique | 105,170 | – | – | – | – |
| Grand Total | 1,633,430 | 620,547 | 831,600 | 163% | 96% |
Source: Vessel Line-up data, CoalMint Research
Quantity in MnT
FPCCI Demands Withdrawal of Import Duty on Coal:
In a recent development, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Pakistani government to withdraw the 5% import duty on coal.
FPCCI has demanded duty free coal imports to make electricity generation more viable, in order to save huge investment made in power plants projects.
The department also highlighted the fact that the recent devaluation of Pak Rupee against USD had further eroded the competitiveness of electricity generation through imported coal.
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