According to the vessel line-up data compiled by CoalMint Research, Pakistan’s coal imports have increased to 14,518,154 MT in the financial year FY19 (running from Jul’18 to Jun’19) as against 12,549,564 MT marked in FY18, thereby noting a growth of 16% Y-o-Y in the period.
Coal requirement driven by absurd power demand and infrastructure needs, have doubled the country’s import volumes from that witnessed a few years ago.
However, Pakistan’s imports in the past four months to Jun’19 have remain subdued y-o-y, primarily due to decline in intake by the cement sector. Apparently, country’s cement sale has noted a negative growth of 0.51% during the first 9 months of FY19, as per the data provided by Pakistan Cement Manufacturer Association.
A sector-wise break-up of imports indicate that Pakistan’s power sector had accounted for nearly half of the imports taken during FY19. Intake by power sector was marked at 7,097,385 MT during the fiscal year.
Next in line was the country’s cement sector which had taken 4,137,124 MT coal in FY19. It is to be noted that cement sector’s coal intake have been falling since Apr’19 and was marked lowest for the fiscal period in Jun’19.
Traders with 1,287,343 MT coal imports emerged as the third-largest coal receivers in FY19 followed by Textile industries which had taken 516,380 MT coal during the year.
Country-wise Coal Imports:
Softening coal prices in global market had paved the way for Pakistan’s coal imports, which had witnessed growth from both its preferred suppliers-South Africa and Indonesia.
South African coal export to Pakistan increased 13% Y-o-Y to 9,904,768 MT, while supplies from Indonesia were up 48% on the year to 3,733,218 MT in FY19.
Mozambique emerged as the third-largest coal supplier with exports of 418,218 MT coal in FY19. Coal supplies from Russia, US and Mexico had come down Y-o-Y during the period.
Considering the environmental challenges associated with handling of coal at Karachi Port Trust (KPT) and severe impacts on the health conditions of the citizens of Karachi, the Supreme Court of Pakistan had refrained the handling of all the ships carrying imported coal at KPT.
Subsequently, coal shipments were thereon directed towards Pakistan International Bulk Terminal (PIBT). The terminal has envisaged to improve its infrastructure in order to facilitate higher imports which are expected to increase as a result of the planned expansion in cement and coal-based power plants.
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