Pakistan International Bulk Terminal Ltd (PIBTL) will benefit from Pakistani rupee currency appreciation against the greenback. The rupee is getting stronger due to administrative measures. PIBTL was incurring losses due to exchange losses. According to Spectrum Research, the strengthening of rupee against the dollar by four per cent since June 2023 is poised to mitigate the foreign exchange losses, as the PIBTL holds foreign currency-denominated loans of approximately US$18.4m.
Moreover, the constrained coal trade from Afghanistan has encouraged an upswing in coal imports via sea routes. This development is anticipated to yield advantages for PIBTL.
The capacity utilisation has recovered to 67 per cent in October 2023 from 43 per cent in 9MFY22-23, indicating a strong volume ahead. The company expected to save PKR222m (US$0.803m) on dollar devaluation as exchange gains but incurred a loss of PKR99m in revenue as it is linked with the dollar.
The company had secured loans from IFC of US$26.5m at a markup rate of 6M LIBOR plus five per cent per annum. The company also borrowed US$26.2m from the OPEC Fund for International Development, with the same markup rate. However, it is worth noting that the company charges post-handling fees in US dollar (coal US$7.05/t); the depreciation of the dollar against rupee has reduced the company's revenues.
PIBT has been set up as the country’s first terminal for handling coal, clinker and cement on the build, operate and transfer (BOT) basis at Port Qasim Authority. PIBT has built capacity for handling up to 12Mta of coal and 4Mta of cement and clinker, which can be further enhanced up to 20Mta. PIBT has been set up for handling and delivering coal to power and cement plants by utilising the rail, road and sea networks. PIBT has become an integral part of the coal supply chain up to the entry gates of power and cement plants nationwide.
