Energy firms locked in row over coal supply
The companies include a major coal importer Awan Trading and Lucky Commodities. Documents revealed that the controversy centred around a letter issued by Lucky Commodities on December 26, 2024, which the company later denied, triggering a series of claims and counterclaims.
The dispute arose when a letter was sent to Special Assistant to Prime Minister on Power Muhammad Ali, which alleged that Awan Trading and Sinpa (Pvt) Ltd were illegally awarded a six-year coal supply contract with PQEPC.
That letter, which was attributed to Lucky Cement, accused Awan Trading of corruption and misinformation in the bidding process, noting that such contracts were typically for one to two years. The letter called for immediate cancellation of the bidding.
Ministry officials shared the letter of Lucky Commodities with the National Electric Power Regulatory Authority (Nepra), which sent it to PQEPC for the company's response.
In reply, Awan Trading dismissed Lucky Commodities' allegations as baseless and false, asserting that the contract was awarded through an open and transparent process. It claimed that Lucky had launched a malicious campaign after failing to secure the tender.
The letter, attributed to Lucky Commodities, also suggested that Awan Trading was unable to participate due to the ongoing litigation concerning a coal supply contract with one power plant. Responding to that, Awan Trading clarified that the contract was lawfully awarded and it was fulfilling all legal requirements.
The legal dispute involves a writ petition filed in the Islamabad High Court, challenging the use of imported coal instead of cheaper coal from Afghanistan. Despite the ongoing legal proceedings, no injunctive order has been issued by the court.
Awan Trading emphasised that its customers included Chinese companies investing under the China-Pakistan Economic Corridor (CPEC) project, warning that any allegations could harm Pakistan's reputation and the credibility of local authorities.
Later, Lucky Commodities denied the contents of the letter and raised questions about the role of regulatory oversight.
Industry insiders blamed the confusion on ministry officials, who had the responsibility to first verify the letter. Awan Trading is now demanding an independent inquiry. The feud has sparked calls for accountability and ministry intervention to prevent further escalation.
When contacted, a spokesperson for Lucky Cement said that the first letter that contained allegations against Awan Trading was fake and they did not write any such letter.
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