Pakistan’s energy crisis major hurdle in economic growth: ADB

[The SC]

KARACHI: The Asian Development Bank (ADB), in a report released Wednesday, has said that Pakistan’s economy faces a major hurdle in the shape of its domestic energy crisis.

The ADB has identified rising inflation, investment decline, low tax revenue and losses at public-sector enterprises as other factors hindering economic growth.

“The economy continues to be affected by structural problems, including a domestic energy crisis, a precipitous decline in investment, persistently high inflation, and security issues. Budget deficits remain high, driven by substantial subsidies and losses at state-owned enterprises, and tax revenue below target,” says the report.

The ADB sees power as the main constraint for economic growth, stressing for better load-management to minimize commercial losses.

The report adds: “Losses arising from power and gas shortages held down GDP growth by 3–4 per centage points in FY2011 and FY2012. Improved management of power resources could ameliorate predictability of load-shedding to allow the private sector to better schedule work and minimize costs.”

“For every unit of power sold, there is a loss to the sector reflected in the form of subsidies. An outstanding accumulation of PRs220 billion was carried into FY2012, and an additional financing of 1–1.5% of GDP is likely to be required in FY2012.”

Furthermore, the ADB advises reforms in not only the energy sector but also state-owned enterprises, naming Pakistan Railways, Pakistan International Airlines (PIA), and Pakistan Steel Mills as entities suffering the steepest of losses.

“The challenge of improving efficiency and putting these enterprises on a viable commercial footing is formidable. Reforms are needed, including a separation of these enterprises from operational interference by government ministries,” advises the ADB.

The report adds: “The slow growth in recent years was exacerbated by widespread floods in FY2011. Unless progress can be made in resolving these fundamental problems, the growth outlook will stay modest.”

Pakistan’s energy crisis major hurdle in economic growth: ADB | DAWN.COM

 

[The SC]

So how come the Iran Pakistan gas pipeline is not in the interest of Pakistan, or is this yet another form of pressure on a vital point of Pakistan that in case of a war with Iran, the gas supply will be jeopardised somehow.
I think Pakistan should go on with its projects, both the Iran Pakistan pipe line and add to it the Saudi project for petroleum too.

 

[The SC]

Pakistan's Thar coal reserves..

if all The oil Reserves of Saudia Arab & Iran Put Together
These Are Approximately 375 Billion Barrels,But
A Single Thar Coal Reserve Of Sindh is about 850 Trillion Cubic Feet,
Which is More Than Oil Reserves Of Saudia & Iran.

These reserves estimated at 850 trillion cubic feet (TCF) of gas, about 30 times higher than Pakistan 's proven gas reserves of 28 TCF.

Dr Murtaza Mughal president of Pakistan Economy Watch in a statement said that these reserves of coal worth USD 25 trillion can not only cater the electricity requirements of the country for next 100 years but also save almost four billion dollars in staggering oil import bill.

Just 2% usage of Thar Coal Can Produce 20,000 Mega Watts of Electricity for next 40Years ,without any single Second of Load Shedding.
and if the whole reserves are utilized, then it could easily be imagined how much energy could be generated.

The coal power generation would cost Pakistan PKR 5.67 per unit while power generated by Independent Power Projects cost PKR 9.27

It Requires Just Initial 420 Billion Rupees Initial Investment,
Whereas Pakistan Receives annually 1220 Billion from Tax Only


Chinese and other companies had not only carried out surveys and feasibilities of this project but also offered 100 percent investment in last 7 to 8 years but the “Petroleum Gang” always discouraged them in a very systematic way


But Petroleum lobby , is very strong in Pakistan and they are against any other means of power generation except for the imported oil. This lobby is major beneficiary of the increasing oil bill that is estimated above 15 billion dollar this year. Even GOV. is planning to Sell all these reserve to a company on a very low price.
when pervaz Musharaf was president he gave green signal to embark upon the initiation of work on exploiting energy potential of these coal reserves of Thar under a modern strategy.
Think About This, How We Can Help Our Home Land .

Spread this knowledge among all Pakistanis.

THAR COAL RESERVES in Pakistan

 

[The SC]

Four Thar coal wells to produce gas next week

ISLAMABAD - Chairman of the Governing Board of Thar Coal Project, Dr Samar Mubarakmand, on Sunday said four more coal wells had been set on fire and as a result gas production from these would begin from next week. Talking to a private TV channel, he said a flame would be lit from gas as emission began from these wells towards the end of this month. Dr Samar said through underground gasification technology, electricity could be generated at Rs 3 to Rs 4 per unit while diesel could be produced at $40 per barrel. The average rate of power production through furnace oil came to Rs 20 per megawatt, he added. He said as much as 50,000MW of electricity a day could be generated through Thar Coal reserves. Mubarakmand said a number of foreign companies, including those of China, had expressed interest to invest in Thar Coal Project.

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