ISLAMABAD: Amid growing energy demands, a key industry figure has stressed that coal imports remain essential for Pakistan’s power generation and industrial operations due to the limitations of local coal reserves in both quantity and quality.
Speaking to Business Recorder, Syed Mustafa Ahmed, Director of Awan Trading Co (Pvt) Ltd (ATCL)—one of Pakistan’s top coal importers—highlighted the company’s role in supplying coal to critical sectors such as power, cement, and textiles. “With increasing demand, industries and coal-fired power plants need consistent access to high-quality coal to function efficiently,” he said.
Ahmed warned against politicizing long-term coal supply agreements, particularly those involving Chinese partners, stating that doing so could erode investor confidence and derail future energy sector investments.
Pakistan continues to grapple with major hurdles in coal imports, including restricted opening of Letters of Credit (LCs), rupee depreciation, and logistical constraints. Environmental concerns, rising import tariffs, regulatory bottlenecks, and outdated infrastructure further complicate coal procurement and supply.
He emphasized that local coal—due to its high sulfur and moisture content—is ill-suited for large-scale industrial use, and cannot currently meet national energy requirements. “Imported coal is not just a matter of preference but a necessity for operational reliability and efficiency,” he stated.
Ahmed urged the government to revamp regulatory frameworks, enhance port and transport infrastructure, and support emission control upgrades in power plants.
ATCL imported 1.07 million metric tons of coal in 2022, 990,000 tons in 2023, and nearly doubled its volume to 1.99 million metric tons in 2024, contributing over Rs27 billion in taxes over the past two years—underscoring its role as a major stakeholder in Pakistan’s energy economy.
