During mining  large anounts of fine  coal (slack coal) are wasted. Especially in Pakistan due to lack of modern technology for mining of coal as well as in shipping, we are wasting tones of slack coal. Slack coal from “Khushab Pakistan” is being used to form briquettes for gainful utilization. Briquettes are useful for carbonizing, coking and heating purpose. Briquettes are formed by using different types of Coal Binders (organic & inorganic binder). Coal Tar can be used as a binder and can be obtained from pyrolysis of coal. Coal Tar as a binder has different properties e.g good binding ability, inhibits swelling during carbonization, is combustible during combustion of briquettes and most importantly is cheapest one in all of the available binders. In the present work slack coal was used to produce coal tar in an autoclave reacor.  The coal tar produced was used as a Coal Binder  for Pakistani Coal. The results of investigations will be presented for utilization of coal tar as a Coal Binder.