Afghanistan’s coal exports to Pakistan decline amid tax hikes: Report

The export of coal from Afghanistan to Pakistan through the Torkham crossing has significantly decreased after the Taliban increased taxes on coal mines and duties on its exports, according to a report by Pakistani media.

The report says that Pakistani industrialists have also started turning to comparatively cheaper local coal.

Imports of all types of goods from Afghanistan through the Kharlachi crossing in the Kurram tribal district have been suspended for the past few months due to security tensions.

Dawn reported that local coal importers are struggling to pay the additional duties and taxes imposed by the Taliban since their takeover of Afghanistan.

Before the spike in customs duties and taxes on mines in Afghanistan, more than 4,000 vehicles loaded with coal would arrive from Afghanistan via Torkham each month.

This number has now dropped to between 1,200 and 1,300 per month, according to a local importer quoted by Dawn. With the suspension of the Kharlachi crossing in southeastern Afghanistan, all coal exports to Pakistan are now conducted through Torkham.

The report noted that Pakistani factories are now relying on local coal due to the increased prices of Afghan coal. They primarily purchase coal from mines in Darra Adamkhel, Kohat, Hangu, and Quetta at comparatively cheaper rates.

The report further explained that Afghanistan’s increasing reliance on Iran, India, and some Central Asian states for its cement needs in recent years has also adversely affected coal exports to Pakistan.