The government of Pakistan will provide tax and other benefits for domestic coal producers, with the aim to stimulate coal mining within the territory of the country this year, according to recent statements, made by an official spokesman of Pakistani government and some local media reports.
As part of these plans, these companies will be exempted from payment of some taxes, including income tax until 2025.
According to analysts, that should stimulate coal mining activities in Pakistan in years to come, despite the ever growing pressure of local environmentalists, which demand to restrict operations of major coal mines in the country.
At present total coal resources of Pakistan are estimated at approximately 185 Billion tons. The bulk of them are located in Sindh region, one of the five largest provinces of the country (being estimated at 175 billion tonnes)
Despite generally high profitability of coal mining in Pakistan, the production of coal in the country is traditionally associated with high risks for miners, as only in the last several years up to 50 major accidents in coal mines, resulting in more than 320 deaths, occurred in the country.
By: Eugen Gerden