PIBTL to settle its foreign exchange debt in a couple of years 

PIBTL to settle its foreign exchange debt in a couple of years 
24 June 2024

Pakistan International Bulk Terminal (PIBTL) is expected to repay all financial dollar-based loans by June 2026. At a recent conference hosted by Topline Research, Shariq Azam Siddiqui, CEO of PIBTL, and Arsalan I Khan, CFO of PIBTL, shared their expert insights on the company’s operations and the promising outlook for coal and cement handling in Pakistan. 

They talked about the foreign loan exposure: the foreign loans have been reduced to US$20m and will be further reduced to US$16m by 30 June 2024. The dollar-based loan repayment will be completed by June 2026. A couple of years ago, management tried to swap this foreign currency loan with Pakistani rupee, but the central bank did not allow this.

PIBTL can only handle coal, clinker and cement, which are classified as dirty bulk cargo. Other items, such as rice, are not permitted. Permission for other items must be obtained from the Port Qasim Authority (PQA), part of the federal government. In the future, the company can handle commodities like minerals. However, permission would be obtained as mentioned above.

Previously, PQA allowed the handling of oil products to a few terminals, including PIBT. However, that segment is no longer available due to a change in PQA management.

Current year volume handling: PIBTL handled 5.37Mt of imported coal in 9MFY24. Despite the threat from Afghan and Thar coal, management expects to handle 5-6Mta  of coal in the future.

Currently, Pakistan’s total coal imports stand at 15- 16Mta.

Published under Cement News