Afghanistan more than doubles coal prices as exports to neighbouring Pakistan boom

Hazara workers prepare to load coal onto a truck in Bamiyan province on October 3, 2021. (AFP/FILE)
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Updated 06 July 2022
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Afghanistan more than doubles coal prices as exports to neighbouring Pakistan boom

  • Customs duties from coal exported to Pakistan are a key source of revenue for cash-strapped Afghanistan
  • Sanctions and cut in development aid since Taliban rule last August have severely hampered economy

KABUL:  Afghanistan’s Taliban administration has more than doubled prices for coal, the finance ministry said on Wednesday, as the group seeks to raise revenue from coal exports and shrink its budget deficit after being cut off from international aid.
Customs duties from coal exported to Pakistan are a key source of revenue for cash-strapped Afghanistan. Sanctions on the banking sector and a cut in development aid since the Taliban took control last August have severely hampered its economy.
The Taliban administration last week lifted prices for coal to $200 per ton from $90 per ton, according to finance ministry spokesman Ahmad Wali Haqmal. Around 12,000 to 14,000 tons are exported, mostly to Pakistan, each day. Afghanistan’s Taliban authorities have said they want to move the country away from dependence on foreign aid.
With customs duties increased to 30 percent from 20 percent in May, Afghan authorities will receive $60 per ton, which Haqmal said was expected to make a significant dent in the country’s forecast 44 billion Afghani ($502.11 million) budget deficit this year.
The price hike came just after Pakistani Prime Minister Shehbaz Sharif announced plans last week to import coal from Afghanistan using local currency to save foreign reserves.
“(The timing) was coincidence. Any country would be irresponsible to suddenly lift the price without giving it consideration and study,” Haqmal said.
A Pakistani source said they had received indications weeks ago that the price was being reconsidered.
Pakistan mainly imported coal from South Africa. South African coal prices have been rising in recent weeks due to higher demand from Europe.
Haqmal declined to comment on the decision but had previously said that transactions were between private traders and all customs duties would be collected in Afghanis.
Haqmal added that a team of technical staff had spent weeks studying regional markets, the domestic situation and rising global coal prices in the wake of the war in Ukraine, and settled on the price.
It was calculated with the goal of ensuring Afghan traders could receive as much revenue as possible, while not sparking Pakistani traders to switch to other options, he said.
Authorities were also trying to smooth things over at border crossings — where hundreds of trucks pass each day — so that customs facilities would open 16 hours per day instead of around 12 currently, and to create space for more trucks.


In rare overlap, Chinese Muslims observe Ramadan with Lunar New Year

Updated 6 sec ago
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In rare overlap, Chinese Muslims observe Ramadan with Lunar New Year

  • Lunar New Year started on Feb. 17 and is celebrated for another two weeks
  • Chinese Indonesians make up about 3 percent of the Indonesian population

JAKARTA: Every year, on the first day of Lunar New Year, Febriani visits relatives and gathers for a feast with her Chinese Muslim family, part of a long-standing tradition honoring their ethnic heritage.

But this year, as Thursday marks the beginning of Ramadan, she is celebrating two important occasions within the same week, in a rare overlap that last took place in 1995.

“I’m very happy and grateful that Lunar New Year and Ramadan are celebrated so closely. I observe both every year, so it’s truly special,” she told Arab News.

Widely observed across Asia, the Lunar New Year or Chinese New Year festival is believed to date back to the 14th century B.C., to the times of the Shang Dynasty, China’s earliest ruling dynasty, when people celebrated good harvests.

In 2026, it started on Feb. 17 and is celebrated for another two weeks. For many, celebrations typically involve elaborate feasts, giving children pocket money in red envelopes, and watching dragon dance parades.

In Indonesia, Chinese-descent citizens make up an estimated 3 percent of the country’s Muslim-majority population of more than 280 million. While most are either Buddhists or Christians, a small minority professes Islam.

For 25-year-old Febriani, both Lunar New Year and Ramadan are equally meaningful.

“The two celebrations teach us to strengthen bonds, to share with one another, and to become closer to family,” she said.

“They are both important to me because they happen only once every year and they’re always an occasion to gather with the extended family. It is also a chance to self-reflect and strengthen relationships with your loved ones.”

For Naga Kunadi, whose family lives in Central Java’s Cepu district, Chinese New Year is all about embracing his ethnic identity.

Earlier in the week, his family was busy preparing for the new year’s feast, which was a fusion of Chinese and Indonesian dishes, such as claypot tofu, meatball soup and shumai, or steamed dumplings.

“To celebrate Chinese New Year, we prepared halal Chinese food at home. It’s also a way to introduce to my children the traditions from our Chinese side, but there’s a bit of a fusion because my wife is Javanese,” Kunadi told Arab News.

Kunadi, an Islamic teacher at the Lautze Mosque in Jakarta, sees both Chinese New Year and Ramadan as opportunities to teach important life values for his two children. 

Upholding Chinese New Year traditions with his family is for him a way of preserving his ethnic heritage.

“We want to preserve cultural values as long as it does not clash with our religion,” he said.

“If we leave our culture behind, we might lose our identity, so this is something I want to teach my children.”

The fasting month of Ramadan, on the other hand, gives him a chance to teach and practice honesty.

“I want to focus on the religious and moral aspects during the holy month of Ramadan, when we practice honesty on a personal level,” Kunadi said.

“There’s always an opportunity to eat or snack in secret without anybody knowing, but we train ourselves not to do that. For me, Ramadan is a time for everyone to put honesty into practice, including myself and my children.”