KHYBER: The import of coal from Afghanistan through the Torkham border has significantly decreased following the Afghan Taliban’s decision to increase taxes on coal mines and export duties. This situation has been further exacerbated by Pakistani industrialists shifting to cheaper local coal sources.
Custom clearing agents in Torkham revealed that the suspension of trade through the Kharlachi border crossing in the Kurram tribal district, due to security concerns, has compounded the difficulties faced by local coal importers. The additional duties and taxes imposed by the Afghan Taliban since their rise to power have made it challenging for importers to sustain their operations.
Previously, over 4,000 vehicles loaded with coal would cross from Afghanistan via Torkham monthly. This number has now plummeted to between 1,200 and 1,300 vehicles per month. Clearing agents report struggles in managing their monthly expenses due to this decline.
Jamshed Khan, a clearing agent, explained that the coal trade was redirected to Torkham following the suspension of trading at Kharlachi. Pakistani factories have increasingly turned to local coal from Darra Adamkhel, Kohat, Hangu, and Quetta due to the rising costs of Afghan coal.
Mr. Khan noted that most coal importers, numbering around 80 to 90, hail from Punjab and own large industrial units, while customs clearing agents are predominantly locals. Afghanistan’s growing reliance on Iran, India, and Central Asian States for cement has also negatively impacted coal imports from the country. Additionally, reduced demand from Afghanistan has led the local cement industry to cut production.
The decline in coal imports has severely affected customs clearing agents, with approximately 300 losing their jobs in Kharlachi and nearly 100 in Torkham struggling to cover their monthly expenses. Bilal Shinwari, another customs clearing agent, reported that the cost of one ton of coal has risen from Rs35,000-38,000 before the Taliban took power to around Rs50,000 due to increased customs and transportation charges.
Story by Ibrahim Shinwari
