Pakistan faces a situation of low foreign reserves and yet it has agreed to Afghanistan's terms to pay for for coal imports from its neighbour in dollars following Russia’s refusal to sell it the crude and the eventual rising prices globally.
While officials in Islamabad say Pakistan could import about 500,000 tons of Afghan coal in a month, the cash starved Taliban regime has hiked the prices by 30 percent. Besides, the exports have meant hike in domestic coal prices.
According to TOLO news, the rising Afghan coal exports to Pakistan have caused an increase in fuel prices domestically, especially for wood and coal.
Rising Afghan coal exports to Pakistan have caused an increase in fuel prices domestically, especially for wood and coal. Meanwhile, the Chamber of Industries and Mines (ACCI) said rising coal prices in Kabul markets are having a negative impact on the country's manufacturing plants.
“The surge in the exports of coal to Pakistan is good news, but (local) industry now faces a 100 percent increase in coal prices in domestic markets,” said Sakhi Ahmad Payman, head of the Chamber of Industries and Mines.
In the meantime, some woodsellers in Kabul said that due to the high price of coal in the country’s market they could not buy coal for the winter.
The rising price of coal has also had a negative impact on the price of wood.
“When there is no coal in the market, the prices of wood goes up, and in only one month it has increased by almost a thousand Afghani per ton,” said Abdul Aziz, a wood seller.
“Coal prices have risen, which is why wood sellers have not been able to store coal because prices are high,” said Ahmad, a wood seller.
Afghanistan's coal mines start from the Hindu Kush Mountains in Badakhshan province and continue to Herat province.