Chinese energy firms ‘threaten’ to stop Afghan coal import

Islamabad: As a steady decline of foreign currency reserves in Pakistan continues, Chinese energy firms in Pakistan have threatened to discontinue the import of Afghan coal in Pakistan if National Electric Power Regulatory Authority (NEPRA) does not approve of decrease in prices within a week to ensure cheap and continuous electricity in the South-Asian country.
The Chinese firms have started threatening Afghan companies after the Taliban increased the price of coal by 30 per cent in July first week of 2022 after Pakistan Prime Minister Shehbaz Sharif approved of importing coal from Afghanistan .
The Ministry of Finance of Afghanistan raised the price of coal from USD 90 per tonne to USD 200 per tonne due to the increase in coal prices in world markets, reported local media.As per Shehbaz Sharif, Pakistan would save more than two billion dollars by importing coal from Taliban-led Afghanistan.
As per the Chinese firm, M/s Huaneng Shandong Ruyi (Pakistan) (HSR) Energy (Private) Limited, the people of Pakistan received electricity at affordable prices earlier, however, due to the ever-increasing USD against PKR has amplified the impact of the increase in fuel on the power tariff in Pakistan.
Company’s Chief Executive Officer (CEO) Dr Li Xin in a letter to Registrar National Electric Power Regulatory Authority (Nepra) to approve the availability of Afghanistan coal at lowered prices, Business Recorder reported.Chinese company HSR has threatened to discontinue the import of Afghan coal if Nepra does not approve the agreed pricing mechanism within one week.
Keeping the aim of reduction in fuel prices and lowering the import bill so that foreign currency is saved, the Company was asked to explore cheaper (compared to the existing coal price) qualified fuel alternatives with payments being made in PKR, the CEO said.