Coal prices has rallied 98 percent since the Jun 30, 2020 to USD108.25 per tons which is a three year high. The rise in prices is triggered by robust demand in China due economic rebound, safety and environmental inspections and accidents during coal mining.
Current coal based installed capacity in Pakistan is ~4,500 MW and ~1,000 MW more coal based generation capacity is expected to join national grid in next 6 months. In addition to this cement sector relies heavily on coal for their energy needs. This takes country’s local demand of international coal to ~15 million tons which is estimated to cost USD1.2 million in import bill during the current fiscal year.
Cost of power generation on coal during April 2021 remained PKR 8.0 per unit as per NEPRA. Coal has become the major source of power generation in Pakistan and contributed ~23% in power mix of the country.
