Afghan Coal Suppliers in Pakistan

Introduction of Afghan coal

Afghanistan boasts substantial coal reserves, primarily located in the northern regions. These reserves present a promising opportunity for neighboring countries like Pakistan, which have a burgeoning energy appetite. Afghan coal is known for its relatively high quality and diverse specifications, making it an attractive prospect for various industries, including cement, power generation, and manufacturing.

Coal Consumption in Afghanistan

Afghanistan consumes 1,871,722 Tons (short tons, “set”) of Afghan Coal per year as of the year 2016.Afghanistan ranks 61st in the world for Coal consumption, accounting for about 0.2% of the world’s total consumption of 1,139,471,430 tons. Afghanistan consumes 54,039 cubic feet of Coal per capita every year (based on the 2016 population of 34,636,207 people), or 148 cubic feet per capita per day.

Coal Production in Afghanistan

Afghanistan produces 1,871,722.38 tons (short tons, “set”) of Coal per year (as of 2016) ranking 45th in the world. Coal production has the potential to contribute to Afghanistan’s economic development and energy security, but realizing this potential requires addressing the challenges facing the sector. By investing in infrastructure, improving regulatory frameworks, and fostering regional cooperation, Afghanistan can unlock the benefits of its coal resources while mitigating environmental and social risks. With concerted efforts and strategic planning, coal production could emerge as a key driver of economic growth and prosperity in Afghanistan

Afghan Coal and Pakistan

Recently, Pakistan and Afghanistan have concluded an agreement in Kabul to facilitate bilateral trade, in particular for Afghan Coal Import for use in coal-based power plants operating in Pakistan. According to the agreement, coal imports will start at two custom stations in Karachi (Kurram District) and Ghulam Khan border crossing in North Waziristan in Khyber Pakhtunkhwa. Earlier, the two governments had authorized trade of all rupee-dominated goods via land routes through trucks. Currently, Pakistan imports around 20 million tons of coal annually from different sources, primarily for use in power plants. The government has recently decided to partially divert its existing source of South Africa for imported thermal coal required for power generation to Afghanistan in the wake of recent surge in international coal prices. Seemingly, the decision to import thermal coal from Afghanistan has been made by the government in haste and without looking at viability of the proposal, at least not in detail.

Import of Afghanistan coal fixed at USD140/MT

According to the valuation advice, Customs Value of Afghan origin “coal” was determined to be at USD 0.140 per KG (or $ 140 PMT, C&F) vide valuation advice of 2022, issued by the then director Customs Valuation, Peshawar which valuation was in force, till to date. However, Pakistani coal importers have approached the directorate stating that recently, the value of Afghan-origin coal has been decreased substantially. Therefore, import value of coal in Pakistan should also be revised / decreased accordingly. Since coal is important industrial raw material for Pakistan, it was imperative to reconsider and revise its customs value (as imported from Afghanistan) commensurate with its prevalent prices in the local/regional market. Directorate of Customs Valuation Peshawar, therefore, up an exercise for this purpose, in consultation with local importers/traders of Afghani coal in KP.Trade insisted that prices of Afghan-origin coal had undergone considerable decrease in recent times and therefore, its Customs values for import in Pakistan should also be revised downward. Trade also appreciated the fluctuating international price trends of coal and asserted that revised value of Afghani coal, if any, should prevail only for a limited time period, so that the same could be revised again, in due course of time, according to its changing price trends in Afghanistan.

As leading Afghan coal suppliers in Pakistan, Global Trading is committed to providing high-quality coal that meets the diverse needs of various industries. The fluctuating afghan coal prices in Pakistan have been a major topic in recent afghan coal news Pakistan, impacting both local markets and international trade dynamics. Our extensive experience as one of the key afghan coal companies working in Pakistan allows us to offer coal with stringent afghan coal specifications, ensuring suitability for demanding applications such as those required by Askari Cement. We manage afghan coal import and afghan coal export processes with efficiency, adhering to the best practices and regulatory requirements. The recent afghan suspend coal supply news in Pakistan highlighted the importance of stable and reliable supply chains, which we strive to maintain. Our transparent and detailed cash invoice format afghan coal transactions ensures that all financial dealings are clear and precise, further strengthening trust with our clients. By keeping a close watch on the afghan coal price usd trends, we ensure competitive pricing and value for our customers, making Global Trading a trusted partner in the coal industry.