Energy generation: Leading coal trader says imports are crucial
Talking to Business Recorder on Wednesday, Syed Mustafa Ahmed, Director at Awan Trading Co (Pvt) Ltd (ATCL), one of Pakistan's leading coal importers, mentioned that they have played a crucial role in ensuring a steady coal supply for power plants, cement factories, and the textile industry.
'With rising energy demands, industries such as cement, steel, and textiles, along with coal-fired power plants, rely heavily on a consistent and high-quality coal supply', he said.
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'Any attempt to create unnecessary controversy over the longterm agreements of coal supply to Chinese companies can shake investor confidence and halt future investments in Pakistan's energy sector,' he stressed.
Pakistan faces major challenges in securing coal imports due to an ongoing economic crisis, bank refusal to open Letters of Credit (LCs), and a depreciating rupee that drives up costs. Poor infrastructure and storage further disrupt supply chains. Environmental concerns and pressure to shift to cleaner energy also add to the complexity.
High import tariffs, regulatory fees, and policy instability make coal expensive and deter investment. Coal power plants lack emission control technology, while inadequate transport oversight and regulated tariffs reduce profitability.
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To ensure steady supply and economic stability, the government needs to streamline regulations, upgrade port facilities, and strengthen the coal transport network.
Commenting on the adoption of local coal, he emphasised the necessity of imported coal over local coal, citing quality, efficiency, and supply reliability as key factors. 'Pakistan's local coal has high sulfur and moisture content, making it less suitable for large-scale industrial and power sector use.' He further stressed that currently local coal reserves/production are not sufficient to meet the country's growing energy demands, making imports essential to sustain industrial operations and power generation.
In the calendar year 2022, ATCL imported 1,072,000 metric tons of coal. This figure decreased slightly to 990,000 metric tons in 2023 but saw a significant rise to 1,992,000 metric tons in 2024. Despite fluctuations in import volumes, company has consistently demonstrated its commitment as a responsible taxpayer, contributing over Rs27 billion to the national treasury in the past two years.
Copyright Business Recorder, 2025
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