Pakistan Economy - News & Updates - Archive

[Neo]

KARACHI (September 13 2006): A Malaysian national automobiles company, Proton, is launching its automobiles in Pakistan on Friday (September 15). Sindh chief minister Dr Arbab Ghulam Rahim is expected to launch the car, Royal Motors executive-director Sultan Mehmud disclosed this at a press conference here.

Proton holds 60 percent market share in Malaysia. It was established in 1983. In 1985, Proton cars were rolling on the streets. It is worth mentioning here that Lotus, a world famous European sports car manufacturer (Since 1952) was bought by Proton in 1996, so now the legendary Lotus is operating under the flag of Proton.

Sultan Mehmud further informed in the Karachi region, Royal Motors would operate their own outlets, whereas in other parts of the country they have a chain of distributors with all after-sales service facility to Proton customers.

He added at the moment Proton is launching its four different models-both in the CNG and petrol-in Pakistani market and all cars would be imported and this will continue for the next one and half year and by that time Proton would establish its assembling plant in Pakistan.

Marcus Lee, business executive, Middle East and Africa region (export division); Sohail Amjad, manager sales, Royal Automobiles Private Limited and Syed Noman Ahmed, manager services, Royal Automobiles Private Limited were also present on the occasion.

 

[Neo]

Wednesday, September 13, 2006

By Irfan Ghauri

ISLAMABAD: Around 3.23 million people are unemployed in Pakistan, Minister for Labour and Manpower Ghulam Sarwar Khan told the Senate on Tuesday.

In response to a question, Khan quoted the labour force survey 2005-06 to support his argument and said the government was creating new jobs to eliminate unemployment.

Minister for Ports and Shipping Babar Khan Ghauri told the Senate that 95 percent of the work on Phase-I of Gwadar Port and 70 percent of the additional dredging work on a water channel had been completed. In his written reply to a question, Ghauri said the Gwadar Port was expected to go operational by December this year.

To another query, Ghauri said that the Planning Commission had completed a feasibility study on the possibility of inland water transport facilities at the Indus River, adding that the study found that the project was not feasible for multiple reasons.

Education Minister Lt Gen (r) Javed Ashraf Qazi said the Higher Education Commission (HEC) had sponsored 2,655 people for masters and PhD studies in local and foreign institutions during the last five years. He said the HEC sponsored 91 students in 2001-02, 90 in 2002-03, 917 in 2003-04, 1,179 in 2004-05 and 378 in 2005-06.

Of the total, 18 students were from Balochistan, 581 from Azad Kashmir and Federally Administered Tribal Areas (FATA), 1,552 from Punjab, 248 from Sindh and 256 from NWFP.

 

[Neo]

Duplicte post neo. you have already posted that in post # 2215 and in 2218

My bad, I've deleted 2218.
Thanks for reporting.

 

[Neo]

JALALABAD (September 14 2006): Prime Minister Shaukat Aziz has said that Pakistan would build railway track from Chaman to Spain Boldak, road from Jalalabad to Torkhom, a kidney centre at Jalalabad, Arts Faculty at Kabul University and many other development projects under its $250 million assistance package for rebuilding of Afghanistan.

He was speaking at a ceremony held to inaugurate of the first phase of Jalalabad-Torkhom road and to start its second phase here on Tuesday. Pakistan has built the first phase of the road in which the existing road was rebuilt and in the second phase the road would be dualised with the cost of Rs 3.5 billion.

Shaukat said that Pakistan is playing a very active role for rebuilding of Afghanistan and providing its assistance to build infrastructure in this country especially in education and health sector.

He said that being Muslim countries Pakistan and Afghanistan are bound in historical, religious and cultural long lasting relations.

He said that Pakistan believes that a strong and peaceful Afghanistan is in favour of Pakistan and it would continue its efforts for the rebuilding of Afghanistan.

He said that the buildings of road and rail track would increase the trade activities between the both countries, which would strengthen already strong relations among the people of both sides.

He appreciated the efforts of FWO, Pak Army engineers, National Highway Authority and other concerns for completing the first phase of the project in record time.

Afghan President Hamid Karzai thanked the government of Pakistan for providing assistance for the rebuilding of Afghanistan. He said that Pakistan always provided its co-operation and help for Afghan government and its people. "We cannot forget Pakistan assistance provided to the millions of Afghan citizens during their migration," he mentioned.

Afghan President Karzai said that the construction of road between Pakistan and Afghanistan would increase the trade activities between the two countries.

He said that he believes that any nation cannot progress without education and thanked Pakistan for its assistance in education sector in Afghanistan.

He said already strong relations between Afghanistan and Pakistan would be strengthening with the passage of time.

Gul Aga Sherzai, Governor, Nangerhar province, said that the people of this province thank Pakistan for construction of road.

Afghan Minister for Public Works, Sorab Ali Safari also spoke on this occasion and briefed about the importance of this road. He informed that over 14,000 vehicles run on this road daily, which indicates the importance of this road for trade activities between the two countries.

Hamid Karzai presented Ghazi Mir Masjidi Khan Award to Farrukh Javed, Chairman NHA and Major General Asif Ali, DG, FWO and Ghazi Mir Bacha Khan award to Chaudhry Karamat of Nespak for their tremendous efforts and contribution for construction of Jalalabad-Torkhom road.

Earlier, Hamid Karzai, ministers and other Afghan high officials welcomed Pakistan's Prime Minister Shaukat Aziz and the members of Pakistan high-level delegation at Nangerhar Airport with open arms. Information Minister Muhammad Ali Durrani, Communication Minister Shamim Siddiqui, Chairman National Highway Authority, DG, FWO, former governor NWFP Commander Khalil-ur-Rehman (Retd) and the high official of NHA, FWO were in the delegation.

Prime Minister Shaukat Aziz and Afghan President Hamid Karzai jointly laid the foundation stone of the second phase of Jalalabad-Torkhom road project and inaugurated the first phase of the project.

 

[Neo]

ISLAMABAD (September 14 2006): Pakistan has obtained foreign loan of $584.3 million from July 2005 to March 31, 2006. Minister of State for Economic Affairs and Statistics Hina Rabbani Khar stated this in the National Assembly on Wednesday.

She was replying to a question from Maulana Abdul Akbar Chitrali during the question hour, who asked for details of total loans obtained by the government during the said period along with the names of lending countries. The minister for state said that main lenders were China with $322.3 million, Japan with $244.7 million and Korea with $17.3 million.

She specified that loan obtained from China for Buyer's Credit for Earthquake Rehabilitation was $300 million and for Gawadar Deep Water Port Project, $22.3 million. Loan obtained from Japan was for three projects namely Lower Chenab System Rehabilitation Project $112.2 million, Load Dispatch System Up-gradation Project $34.4 million and Emergency Loan for Earthquake Recovery $98.1 million respectively, she added. The loan of $17.3 million from Korea was for 220KV Ghazi Road Lahore Grid Station Project, she said.

She negated the remarks of Opposition member, who blamed the government of begging and replied that it is borrowing and not begging. Further she said that all countries including US, Japan or any other developed nations have to borrow one way or the other. There is nothing wrong with the borrowing, she added.

Differentiating between borrowing and begging on the demand of Opposition benches, Hina said that borrowing does not put the country's sovereignty at stake, whereas you are not the choosier in the other case. She also informed the House that Government as a policy matter refused debts of $375 million offered by International Monetary Fund (IMF) and $200 million from Iran as it thought the loans were harmful to the sovereignty of the country, she added.

The state minister also told the House that debt to GDP ratio in 1999 was 90 percent, which has come down to 54-55 percent.

To another question from lady MNA Jamila Ahmad on the steps taken by the Government for the welfare of imprisoned women during 2004-05 and 2005-06, the Parliamentary Secretary for Interior Sanaullah Mastikhel informed the House that 1300 imprisoned women have been released on the initiative taken by the President of Pakistan. Talking about other steps, Sanaullah told the House that in Punjab, lady advisers of the Chief Minister are visiting the jails in routine to provide maximum relief to the women prisoners. The NGOs are providing legal aid to women prisoners.

To another question pertaining to CDA from Dr Farid Ahmad Paracha, the parliamentary secretary informed that the total revenue collected by CDA during 2003 and 2004 through sale/auction of residential, commercial plots was Rs 4,249.2 million. Income earned on the sale of forms of those schemes including the non-refundable amount was Rs 4,36,800, he added.

There were number of questions for the Ministry of Interior, which were either not satisfactorily answered or not replied at all. The Speaker National Assembly Chaudhry Amir Hussain strongly instructed the parliamentary secretary to ensure their replies in the next rota day ignoring his justifications for the shortcomings, which according to him were futile. State Minister for Interior Zafar Iqbal Warraich was also in the Assembly.

Replying to a question from Dr Farid Ahmad Paracha on foreign direct investment during 2005-06, the State Minister for Privatisation and Investment said it was $3,512 million. Regarding its break-up, he said that we do not have any figures. We have not established any procedure to differentiate between foreign investors and foreign investment coming on behalf of Pakistani living abroad or local, as such information is not available.

 

[Neo]

KARACHI: The country is eyeing over $100 million in software exports during 2006-07 as record figures achieved in the last financial year push the authorities to set the target at a high level for the emerging industry.

Officials and industry players say the increased interest of western firms in outsourcing towards Pakistan indicates the country is fast catching up in software development and at such a rate that its global IT revenue should reach around $9 billion in next four years.

“We have set $108 million software export target for 2006-07,” said Yousuf Hussain, Managing Director Pakistan Software Export Board - a federal body set up to promote outsourcing and software exports.

“We are inspired by the State Bank data, which showed our companies managed to export over $72 million worth of software during 2005-06 and with the same rate we should achieve this (new) target by the end of June 2007.”

He said according to the parameters defined by the WTO (World Trade Organisation) regime the software exports were estimated at more than $100 million during 2005-06 but the figures registered by the State Bank put the exports at $72.6 million.

The country’s software exports crossed $70 million during 2005-06 for the first time, registering a 50 per cent growth, as western firms started turning more and more towards Pakistan for IT-enabled services to cut costs and raise profits.

The country’s IT industry has emerged as the fastest growing sector, mainly supported by a phenomenal jump in call centre operations during the last two years. More than 140 such centres are currently operational, mainly in Lahore, Karachi and Islamabad offering employment to around 5,000 people.

Defined as a unit, the call centres have adequate telecom facilities, trained manpower and access to database providing information to customers. The advancement in telecom technology has made it possible that the person handling a call could be anywhere provided that communication and interaction is properly handled.

The growth in business from western companies has inspired local investors to explore new opportunities. Though Pakistan remains far behind India in telecommunications, operators believe they are on the right path now.

“The good thing is that western companies are looking at Pakistan to outsource services,” said Jehan Ara, President Pakistan Software Houses Association. “It’s an important development as after 9/11 local companies faced a tough time in terms of winning business from these companies.”

However, she questioned the mechanism of calculating export figures by the State Bank, saying it should be reviewed by the authorities concerned as exports were much higher during 2005-06 than those registered by the central bank.

“The State Bank only counts those revenues which come under the head of remittances. It should also take those expenditures in export revenue calculation, which companies bear for marketing and their front office abroad,” added the PASHA chief.

The authorities appear aware of the approaching opportunities and claim to have spent Rs115.2 million during fiscal year 2004-05, for subsidising various activities of immediate relevance to the industry, like participation in international exhibitions and achieving quality certifications.

The PSEB says it will continue projects initiated during the last two years and plans more in the new fiscal for the growth of software exports and call centre operations.

 

[Neo]

ISLAMABAD: September 14, 2006: Head of the External Co-ordination Wing of the Russian Ministry of Economic Development and Trade Alena Zalinova said on Thursday her country has shown interest in modernising the Pakistan Steel Mills (PSM).

She stated, in an interview, that PSM Karachi was one of the projects completed with the assistance of the former Soviet Union.

Russia intended to take part in bids for privatisation and modernisation of the PSM, she said.

 

[Owais]

Food inflation hits double digits


ISLAMABAD (September 15 2006): Once again, the rising inflation, particularly of food items, is becoming a nightmare for economic managers, which (food inflation) during August 2006 leaped to double digits (11.08 percent) from 7.44 percent a month earlier; thus, snatching the purchasing power of the low-income group.

The general inflation measured by the Consumer Price Index (CPI) climbed during August to 8.93 percent from 7.63 percent in July, depicting an increase of 1.3 percentage points in a span of one month, says the State Bank of Pakistan 'inflation indicators' released on Thursday.

The bank's data reveals during fiscal 2005-06, average annualised CPI inflation was 7.92 percent and food inflation 6.92 percent. While in the first two months (July-August) of 2006-07, the average general inflation rose to 8.28 percent with food inflation of 9.25 percent.

It was at 7.63 percent (food inflation 7.44 percent) during the first month (July) of this fiscal year, indicating inflation is again rising and is still a potential threat to the economy.

Though the government has tightened its monetary policy in July-the SBP tightened its stance by raising its policy rate (the three-day repo rate, which is its rediscount rate) from 9 to 9.5 percent, and adjusted upward both the banks' cash-reserve requirement ratio and their statutory liquidity requirement ratio. Yet, the accommodative monetary policy prevailed for the last few years would have a boosting effect on inflation.

Food inflation, having more than 40 percent weightage in CPI basket, unevenly affecting the purchasing power of the low-income group, increased by 2.24 percent during August 2006 over the previous month.

In one month, general inflation increased by 1.25 percent; food inflation, 2.24 percent; non-food inflation, 0.89 percent; and core inflation increased by 0.54 percent in August 2006 over the last month.

Inflation indicators, the bank providing since 1998-99, reveal annualised CPI inflation was highest during FY2004-05 at 9.28 percent, of which the food inflation was 12.49 percent.

Majority of the population consists of low- and middle-income groups and always suffered most by the increasing food inflation. When prices go up, it hit these groups and squeeze their purchasing power.

Core inflation (excluding certain sectors, whose prices are most volatile, specially food and energy) stood at 6.20 percent during August of the new fiscal against the annual average of 7.11 percent in FY2005-06.

The non-food inflation also declined to 7.43 percent during the month under study while in the last fiscal the average non-food inflation stood at 8.63 percent.

The other indicator of inflation, ie, the Wholesale Price Index (WPI), in general though, indicating decline, yet the food inflation in August increased by a huge margin (2.8 percentage points) to 8.19 percent from 5.39 percent in July 2006.

WPI was at 10.10 percent during FY2005-06, of which the food inflation was seven percent and non-food inflation at 12.37 percent. In August 2006-07, it declined to 8.17 percent with food inflation at 8.19 percent and non-food inflation at 8.15 percent.

 

[Owais]

Kuwaiti firm not endorsing PSMC sell-off process


ISLAMABAD (September 15 2006): The Privatisation Commission is facing difficulty in getting Al-Kuwait Investment Company's endorsement of the Pakistan Steel Mills Corporation (PSMC) privatisation, it was learnt here on Thursday.

Sources said the Al-Kuwait Investment Company-the runner-up bidder for the PSMC's controversial sell-off-has turned down the Privatisation Commission's request to endorse in writing the mills privatisation process.

Sources said the Privatisation Commission had approached the Kuwait investment group to get its endorsement in writing to establish that the transaction was carried out through an open and transparent process. The company informed the Privatisation Commission it could consider the request for the PSMC bidding process endorsement if provided reasons of the certification and details of the Council of Common Interests (CCI) decision for the PSMC future.

Privatisation Commission officials were considering to again approach Al-Kuwait Investment Company with requisite information to get the endorsement of the PSMC bidding. Sources in the commission were tight-lipped about the necessity of approaching the Kuwaiti group to get its certificate for establishing the PSMC's sell-off, which was later struck down by the Supreme Court of Pakistan.

Specially, in a situation when the Privatisation Commission has already refunded first instalment of the payment to Al Tuwairqi group-led consortium. Sources said the Privatisation Commission had refunded the first instalment and earnest money to the winning consortium last month.

Its only purpose could be to get Al Kuwait Investment Company's certification in support of its review petition filed before the Supreme Court of Pakistan. It may be noted the Privatisation Commission has submitted a review petition before the Supreme Court of Pakistan in PSMC sell-off case. The hearing into the case is expected sometimes next month.

Arif Habib-one of the parties of the winning side led by Al Tuwairqi group of Saudi Arabia-has also filed petition before the Supreme Court of Pakistan, seeking review of the decision.

 

[Owais]

PTCL declares Rs 20.777 billion profit




KARACHI (September 15 2006): The Pakistan Telecommunication Company Limited (PTCL) has announced a final cash dividend for the year ended June 30, 2006, at Rs 2.00 per share ie 20 percent. This is in addition to interim dividend already paid at Rs 3.00 per share ie 30 percent.

PTCL's profit after tax (PAT) for the year ending June 30, 2006, comes to Rs 20.777 billion (EPS: Rs 4.07) as against Rs 26.605 billion (EPS: Rs 5.22) for the year ending June 30, 2005, marking a decline of around 21 percent. The operating profits of the company stood at Rs 27.397 billion as against Rs 36.363 billion the previous year. The gross revenue remained Rs 69.085 billion against the operating cost of Rs 41.688 billion.

The other income added to the profits was calculated at Rs 3.913 billion against Rs 3.387 billion calculated last year. Financial charges levied on the company were Rs 336.401 million as against Rs 455.099 million last year. While the profit before tax stood at Rs 30.974 billion for the year ending June 30, 2006, as compared to Rs 39.296 billion last year.

The annual general meeting (AGM) of the company will be held on Tuesday, October 31, 2006 at S.A Siddiqui Auditorium, PTCL Headquarters, Islamabad. The above entitlement will be paid to the shareholders whose names will appear in the Register of Members on October 20, 2006. The share transfer books of the company will be closed from October 20-31, 2006.

 

[Owais]

Economy to grow close to 7 percent: Shamshad


SINGAPORE (September 15 2006): State Bank governor said on Thursday the economy would expand by close to 7 percent this fiscal year and that tight monetary policy was helping control demand without stifling growth.

Shamshad Akhtar, governor of the State Bank of Pakistan, told Reuters in an interview that a buoyant service sector, a robust retail sector and strong investment would drive growth this year.

"We are definitely upbeat on Pakistan's economic prospects," Akhtar said. "We are likely to achieve close to 7 percent growth in 2007," she added, giving a figure broadly in line with a previous central bank forecast.

Pakistan's economy grew by 6.6 percent in the fiscal year that ended in June. Akhtar said the financial services sector was exceptionally strong, expanding by more than 20 percent in the same period.

Akhtar said the main risk to growth was the high price of oil, so she was happy with the recent drop in crude prices.

Pakistan assumed a crude oil price of $68 a barrel in its most recent budget. US crude traded around $64.50 on Thursday.

On a possible slowdown in the US economy crimping demand for Pakistan's exports, Akhtar said she was confident cooler growth in the world's biggest economy would have only a limited impact on Pakistan. "Pakistan is trying to diversify its export products, as well as markets," she said. In the previous fiscal year, the US was Pakistan's biggest export destination, taking 24 percent of total exports.

Akhtar said the central bank's tight monetary policy was working to slow private credit growth and that the inflation target of 6.5 percent this fiscal year was attainable.

 

[Owais]

Pakistan’s fiscal position should be on ‘medium-term footing’ : IMF

Singapore: The International Monetary Fund (IMF) put on notice the countries with high public debt and/or budget deficits such as the Philippines, India and Pakistan, saying that their fiscal positions should be put on a “medium-term footing.”

This meant that “further consolidation and improvements in the composition” of the Philippines’ debt—which is associated with foreign currency risks—would reduce the vulnerability to changes in global investor sentiment and enhance monetary policy credibility, the agency said.

Last week the Asian Development Bank maintained its 2007 GDP outlook for the Philippines at 5.3 percent, lower than the government’s 5.7-percent assumption. Reasons for the relatively lower forecast include slow investments and low capital outlay.

 

[Neo]

KARACHI, Sept 14: The UK-based European giant Barclays Bank is interested to make investment in Pakistan and a team of its experts is coming early next week to explore the potential, highly placed banking sources told Dawn on Thursday.

The rising interest of the foreign banks in the financial sector has already involved several world top ranking banks in Pakistan.

Barclays is one of the largest financial services companies in the world. It has been involved in banking for over 300 years and operates in over 60 countries with more than 118,000 permanent employees.“Barclays Bank will explore possibility to buy a bank in Pakistan,” said the banking sources.

He said a number of banks are in line for sale and the foreign banks feel comfortable to invest in the high-yield banking sector. Standard Chartered Bank has recently acquired Union Bank which made it the largest foreign bank in Pakistan.

The foreign banks interest in Pakistan has boosted the image of its financial sector which has been making record profits for the last two and half years.

However, the high competitive situation has compelled small banks to either sell their entities or merge with the other banks.

According to a research report since 1998 small banks started disappearing from the market. The merger and sale is the world phenomenon and small banks are losing ground for the existence.

There were 46 schedule banks in 1997-98 in the country which, due to mergers and acquisition, had reduced to 39 as on Dec 31, 2005.

However, the acquisition of Union Bank was first of its type in Pakistan. The participation of foreign banks is still on the lower side in Pakistan.

“As on Dec 31, 2005, there were 11 foreign banks representing nine per cent of total banking sector assets,” said Mohammad Imran, researcher at JS and Company.

Currently, banking sector in Pakistan is highly concentrated. Top six banks represent 63pc of the total banking deposits (based on March 2006 data). Moreover, in terms of profitability these banks’ share is also 64 per cent.

Barclays is a UK-based financial services group, with a large international presence in Europe, the USA, Africa and Asia. Its presence in the financial sector of Pakistan would help the sector to bring it at par with the global banking standard.

For the year ended 31st December 2005, the Group achieved a pre-tax profit of £5,280m, up fifteen per cent on 2004. In 2005 Barclays paid approximately £3bn in taxes. In the six months ended June 30, 2006, Barclays made a pre-tax profit of £3,673 million, up 37pc on the same period in 2005.

 

[Neo]

ISLAMABAD: The country’s second largest telecom service provider - Ufone - on Thursday boasted of bringing “the country’s largest ever expansion of its network amounting to $550 million”.

The implementation would begin from November while its network is envisaged to cover over 1,500 cities, towns, villages and all major highways in the country.

The plan focuses on the expansion of the network in terms of capacity and coverage in existing and new cities besides providing high-speed wireless data services based on EDGE technology.

Ufone President Babar Khan told a press conference that the current investment in network expansion would double its existing capacity.

The investment signals Etisalat’s priorities for the future which has so far been carefully weighing its options and expansion plans.

The Ufone has awarded the contract to a Chinese company Huawei, one of the most rapidly growing telecom vendors globally. The new infrastructure would work along side the already deployed infrastructure by Nortel and Siemens.

Babar said the previous Network Roll-out was also the single largest expansion plan in the history of Pakistan and “this time again we are keeping the precedence”.

Huawei is the vendor of choice in latest Third Generation Telecommunications Networks, 28 of the world’s top 50 operators worldwide are using Huawei infrastructure.

The Ufone chief further informed the audience that over the last 2 years, its subscribers’ base had grown from 650,000 to over 8.5 million nationwide.

 

[Neo]

A biogas plant can exploit tons of buffalo manure generated in the locality

By Fasahat Mohiuddin

KARACHI: In addition to New Zealand-based firms, some American companies have also started surveying Karachi’s Bhains (Cattle) Colony to explore the possibility of installing a biogas plant there.

Tons of buffalo manure is generated on a daily basis in the locality and is just washed away in storm water channels and drains causing pollution and also losing a good opportunity.

Electricity can be generated by exploiting this waste product, say experts. The city has been facing acute power shortages and continued load-shedding has made life miserable for citizens. Under these circumstances, one should look for some alternative source of power and it should be through local resources.

It is high time some cheap source of power was found so that power could be supplied without any interruptions, add analysts.

Natural gas currently accounts for more than 50 per cent of the country’s primary energy supplies.

With accelerating economic growth, the demand for gas is increasing sharply. The nation’s existing recoverable indigenous gas reserves are either declining or are incapable of meeting the rising demand. Hence, the country will face acute gas-energy shortages in the near future.

In order to overcome the projected shortfall, energy experts have recommended the use of imported liquefied natural gas in order to meet the energy shortage up to 2010 and beyond, and also to facilitate LNG-importing companies. The government has granted a 10-year complete tax and duty holiday on the import of liquefied natural gas (LNG).

The government also expects to meet further shortages through cross-border gas imports through transnational pipelines from Iran, Turkmenistan and Qatar. Besides the measures mentioned above, we further need to look for alternative energy sources such as biogas, wind power and solar energy to substitute natural gas. Of the sources mentioned above, the most appropriate is biogas and can easily replace natural gas.

This source can be generated from a variety of biomass material that is easily available all over Karachi. The primary sources of biogas are buffalo dung, municipal solid waste and sewage sludge.

The process of biogas conversion is simple and yields a gaseous product that consists of 55-60 per cent methane and the balance is carbon dioxide.

The heating value of biogas is approximately 600-800 BTU/cubic foot. Biogas of this quality can be used to generate electricity. It may be used as fuel for steam boilers, space heaters or to run refrigeration equipment. It is also a suitable cooking and lighting fuel.

The gas can also be used in vehicles using CNG as fuel. Natural gas is consumed heavily by CNG stations in Pakistan. Biogas production is virtually possible in every city and village of the country, argue experts.

Electricity from biogas can be generated for on-farm use or for sale to the local electric power grid. The most common technology for generating electricity is an internal combustion engine with a generator.

In order to identify and implement measures for the substitution of natural gas with alternative renewable sources, ATCO International Inc, a Pakistani-owned, Texas-based firm, has already begun work on a feasibility study for a buffalo manure-based biogas plant to be located in Cattle Colony, Landhi.

The 500,000 heads of cattle in the area produce 5,000 metric tons of cow dung daily. The buffalo manure emits large quantities of methane, carbon-dioxide and hydrogen sulphide into the atmosphere.

This pollutes the surrounding air and the atmosphere around Cattle Colony where pollution levels have exceeded those permitted by NEQS (National Environmental Quality Standards).

Urgent action is required to attend to this matter because Pakistan is one of the first signatories to the Kyoto Protocol. This obliges the country to decrease the quantum of greenhouse gases to levels permissible under the protocol.

Methane produced from cattle dung can be recovered in a biogas plant and used for power generation. This not only helps meet the power shortage but also helps reduce greenhouse gas emissions.

Pakistan has one of the world’s largest livestock population. According to an estimate, around 1 million cattle are present in three different locations of Karachi.

This project is based on the feasibility study of a biogas plant in Landhi Cattle Colony. The area has a population of around 200,000 cattle. Brief data analysis shows that a 38MW power plant can be installed by using cow dung generated in the locality.