According to the vessel line-up data compiled by CoalMint research, Pakistan’s coal import has recorded significant growth during the FY18 which has ended on Jun’18. The fiscal year of the country runs from 1st Jul to 30th Jun.
Coal import by Pakistan was marked 12,549,564 MT during the FY18 (Jul’17-Jun’18), which was 43% higher on the year compared with 8,789,899 MT coal recorded in FY17 (Jul’16-Jun’17).
Import in the month of Jun’18 was 1,511,164 MT, up 17% M-o-M from 1,295,896 MT in May’18.
The demand for imported coal in the country majorly arises from the power and cement sector which have procured nearly 85% of the total yearly imports in FY18. The remaining coal was taken by the country’s Textile, Paper mill industries and traders.
The two coal-fired power plants executed under CPEC (China-Pakistan Economic Corridor) had imported nearly 33% of the total coal in FY18.
Huaneng Shandong Ruyi, the operator of Sahiwal power plant, had imported 2,320,630 MT coal, while the import of Port Qasim power plant was 1,879,370 MT in FY18. Lucky Cement, Bestway Cement, and Awan trading company were among the other major coal importers during the year.
Country-wise Coal Imports in FY18:
Pakistan had sourced nearly 70% of its total coal imports from South Africa. Coal import from Africa was marked 8,750,046 MT in FY18.
The remaining 20% of the coal was sourced from Indonesia, which had supplied 2,517,297 MT coal to Pakistan. Rest of the coal quantity was imported from Russia, Mozambique, USA, Mexico and UAE during the year.
Source: Vessel Line-up data, Customs | Quantity in MT
Citing the rising demand of coal in the country, the Pakistan government has lowered the tax rates in order to reduce the direct cost of manufacturing for businesses which utilize coal. Under the federal budget presented for FY19, the government has reduced the custom duty on coal from 5% to 3%.
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