Payment for imported coal: HSR approaches PD for early forex approval

ISLAMABAD: Chinese company M/s Huaneng Shandong Ruyi (Pakistan) Energy (Private) Limited (HSR) has approached Power Division for timely approval of foreign exchange payments for coal purchase.

In a letter to Secretary Power, HSR’s CEO has referred to his previous correspondence wherein the company sought permission/ approval of the SBP for payment for ship 324 amounting to $ 15,624,400 in respect of South African coal.

The letter has been written in light of article 10.4 of the Implementation Agreement wherein the company stated that it initiated the application for coal payment on October 28 which has not been approved yet.

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“We again request Power Division to coordinate with State Bank of Pakistan and expedite the progress of foreign exchange payments in respect of coal,” CEO HSR added.

According to him the earliest ship of the company arrived at the port 6 months ago which has not been cleared by customs till now and the customs has notified the risk of the auction. As of November 8, 2022 coal at port has a backlog of 530,000 tons, because the company owes suppliers $ 115 million in unpaid coal; as a result, the supplier has not provided the documents required for the customs clearance and the coal at port cannot be cleared in time for onward transportation to Sahiwal.

“Due to the long time of placement of coal at port, some of the coal at port has spontaneously combusted, and a high additional fee/ demurrages have been generated. We request Power Division to coordinate with the State Bank of Pakistan to approve the foreign exchange payment for coal in a timely manner, and the safe and stable operation of the unit to meet Pakistan’s’ electricity demand,” he added.

Copyright Business Recorder, 2022