Pakistan Economy - News & Updates - Archive

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Pakistan needs to tap hydropower potential: World Bank ​

FAISALABAD (April 24 2008): Energy is the lifeline of economic development, but unfortunately, Pakistan has historically suffered from energy shortages and demand suppression because of limited supplies and lack of adequate infrastructure development for provision of energy to the industrial sector.

Furthermore, the capacity of Pakistan's existing reservoirs (Tarbela, Mangla and Chashma) has declined by 27 percent and the cumulative decline will increase to 35 percent by 2012 and to 57 percent by 2025.

According to World Bank study report, the major energy consuming sectors of the country are: industrial (38 percent), transport (32 percent), residential and commercial (25 percent), agriculture (2.5 percent) and others (2.5 percent).

The lack of sustained and affordable energy to industry has restrained economic growth and created declining trends for industrial investment in the country. The per capita energy consumption, which is one of the key development indicators as well as measures of quality of life of a country, is low with only 14 million BTU, as compared to 92 million BTU for Malaysia and 34 million BTU for China, the report said.

Currently, the power sector is experiencing acute shortages. Electricity sales rose 40 percent in the last five years (ending June 30, 2007), while generation capacity remained practically stagnant. It is estimated that the system lacks about 2,000 MW to cover current demand with acceptable reliability. Demand, however, is expected to grow at expected rate of 7-8 percent per year in the medium-term.

The WB report observed that this requires accelerated expansion in the power generation systems for which Pakistan has to tap hydropower potential. With multipurpose storages and cost sharing among other sectors (irrigation, domestic water use, flood, environment etc), high altitudes in the north with substantial water flows and relatively sparse population in these areas, the hydropower is most attractive source of energy for Pakistan. However, the country has developed only 15 percent of its estimated 40,000 MW of economically viable potential, a proportion much lower than neighbouring countries (India and China utilise over 30 percent of potential) and much lower than industrialised countries (which utilise around 75 percent).

At present, Pakistan is planning for hydropower to provide about half of new generation in the medium term, since it has recognised that the value of power is not subject to market volatility, that it generates substantial local economic multipliers (the mostly-local construction content of hydropower is about 80 percent versus about 20 percent for thermal power), and that it provides high-value peaking power (which is likely to be worth about four times the value of a unit of base load).

When river flow is variable, storage is required so that water supply can more closely match demand. Lack of storage capacity and control structures is another major constraint to proper water resources management in Pakistan.

Business Recorder [Pakistan's First Financial Daily]

 

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Wapda to generate 2,500 megawatts more electricity within one year: minister tells National Assembly ​

ISLAMABAD (April 24 2008): The Minister for Water and Power Raja Pervaiz Ashraf on Wednesday told the National Assembly that the Wapda would generate 2500 mw additional electricity within one year and would get rid of the burgeoning power crisis in at least three years.

Winding up the ongoing debate on water and power crisis on an adjournment motion in the National Assembly, the Minister informed the House that after taking charge a month back, the new government has added 300MW electricity to the system through short planning and would generate 2200 mw to 2500 mw till April 2009 for which the government is working on war footing.

"The country will get rid of the burgeoning power crisis in at least three years through long and short term planning which the government has already initiated," he added.

Pervaiz, however, made it clear that PPP believes in strengthening the federation and would not build any controversial dam including Kalabagh dam at the cost of the federation and would dig up other sources of energy.

The Minister opined that Bhasha dam could produce power more than Kalabagh at a cheap cost as well in short time, which would be materialised. He sought co-operation of all segments of society, including parliamentarians from both sides of the House for collective action to convert the power crisis into opportunity.

By avoiding any criticism on the previous government, the Minister said that it is not time to waste time in blame game on the national issues and time to face the challenge collectively.

He underlined that demand and supply gap is the basic reason of the ongoing power crisis due to not adding any additional power plant for the last ten years. Besides, he said, hydro power generation has reduced by 60 percent due to shortage of water in major dams, where the water level is 50 percent less than the previous year.

The Minister highlighted that the 16 Independent Power Plant (IPPs) which were launched in 1994 during the PPP government is the main sources of power by producing 5000 mw electricity.

He further told the House that under the short term planning, the government has got rentals for power generation, which would be run through public and private sector.

The existing power plants, he said, need to be renovated to save the electricity and through which at least 500mw electricity could be saved and the government has started working on this.

The Minister also informed the House that the government is going to import 10 million energy savers. These energy savers, he said, would be provided free of cost to the charity organisations, hospitals and schools and the remaining would be given to the general public at a reasonable cost which would be collected by including in the electricity bills.

The Minister further said that the government would focus on the hydro power projects and alternative energy sources eg like coal and wind. Our government, he said, has also planned to call an International Energy Conference in Islamabad on the Thar coal resources to generate electricity though coal.

He also informed the House that the government has disconnected electricity from the hoardings and signboards across the country in a bid to save the electricity. The House would meet again on Thursday at 4. pm.

Business Recorder [Pakistan's First Financial Daily]

 

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CDGK, UAE firm ink MoU to build power plant ​

KARACHI (April 24 2008): A MoU was signed between the City District Government of Karachi (CDGK) and Dubai-based Dhabeen Power Engineering Ltd here on Wednesday to work on the installation of a 1,800 MW power plant to help overcome power crisis in the city.

Under first phase of MoU, work on installation of power turbines, donated by UAE, will start within three months. These turbines would generate 360 MW electricity. However, the power plant will have the capacity to be increased to 1,800 MW phased-wise. DCO Karachi Javed Hanif, MD Water Board Ghulam Arif Khan and EDO Enterprise were present on MoU signing ceremony.

Talking to the media, City Nazim, Mustafa Kamal said that the power turbines being installed were donated by UAE government to overcome power crisis. Furthermore, he said that an experienced company was needed to operate the power plant, therefore, MoU was signed today between the city government and Dhabeen Power Engineering Ltd.

He pointed out that demand for electricity in the city is fast rising, therefore, it was imperative to work in this sector on fast track. He informed that turbines will reach here in few months and installed on a location near Bin Qasim. However, other locations are also under consideration.

On the occasion the Company's Director General Khalfan Saeed Al-Mazoori said UAE and Pakistan enjoy very old brotherly relations and we are not only investing here for its progress and prosperity but also extending all cooperation.

He reiterated that UAE gave turbines to Pakistan as a gift and the MoU signed was aimed at their installation and operation in a transparent manner. He said the project will be visible on ground within three months and electricity problem of Karachiites will be solved to a great extent.

Business Recorder [Pakistan's First Financial Daily]

 

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Hydropower projects: Wapda studies, engineering designs to complete soon ​

LAHORE (April 24 2008): Water and Power Development Authority (Wapda) is vigorously carrying out feasibility studies and engineering designs of various hydropower projects with accumulative generation capacity of more than 25,000 MW and most of these studies are at the advance stage of their completion.

Wapda Chairman Shakil Durrani said this while addressing a delegation of the 88th national management course here on Wednesday. Principal of National Management College, Lahore, Lieutenant General Javed Hassan (Retd) led the delegation. The Wapda Chairman, giving an overview of the water and power scenario, said the Wapda, after its bifurcation in October last year, was now more focused towards harnessing the water and hydropower resources in the country.

Later, Wapda member (Water) Muhammad Mushtaq Chaudhry and Pakistan Electric Power Company (Pepco) Managing Director Munawar B. Ahmed briefed the delegation on water and power sectors respectively.

He said per capita availability of water in Pakistan had reduced to an alarming level of 1,070 cubic meter in 2007 and if the storage capacity was not enhanced by building new water reservoirs, the country would have to face an acute shortage of water in 2012.

He said Pakistan had been blessed with the ample resources of water, but could develop only 13 percent storage capacity of the annual water flows of its rivers, and that too was fast depleting due to sedimentation in the reservoirs of Tarbela, Mangla and Chashma.

The delegation was told that the United States had developed 497 percent storage capacity of the annual flow of River Colorado. Likewise, Egypt possessed 281 percent storage capacity on River Nile and India 35 percent on Sutlej-Bias basin, he added.

He said the increasing population and depleting storage capacity of the water reservoirs in Pakistan called for constructing more than one-mega dams without any further delay. Building just one mega water reservoir would be a replacement of the lost capacity of the existing reservoirs. It was further told that more than 20 million acres of virgin land could be irrigated provided additional water was made available by constructing new water reservoirs in Pakistan.

The delegation was also briefed about the projects being executed by the Wapda in water and hydropower sectors. Later, Wapda Chairman Shakil Durrani and Pepco Managing Director responded to the various questions asked by the delegation. Souvenirs were also exchanged as memento to the visit.

Business Recorder [Pakistan's First Financial Daily]

 

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Pakistan raises prospect of rice export curbs ​

Friday, April 25, 2008

ISLAMABAD: Pakistan raised the prospect on Thursday of curbs on rice exports if the price of the grain rose in the domestic market because of shipments.

Pakistan expects rice production of 5.5 million tones during this fiscal year and, after domestic consumption, it should have an exportable surplus of 2.5 million tonnes, Minister of Food Chaudhry Nisar Ali Khan told a news conference.

Khan said the government would allow rice exports unless they affected domestic rice prices:“If we feel that the export of rice has some negative impact on domestic prices, we can think of all kind of actions.”

Asked if the government would ban or tax exports, Khan said: “There are certain options but we will talk to exporters about that.”

Rice, a high-value cash crop, accounts for about 8 per cent of Pakistani exports and 1.2 per cent of gross domestic product.

Pakistan produced 5.4 million tonnes of rice last year and exported 3.12 million, equal to about a 10th of world rice trade.

“Rice is an important foreign exchange earner but it is also very important for us to ensure its domestic prices at the given price,” he said.

Rice prices in Pakistan, the world fifth-largest rice exporter, have doubled in the past few months.

Pakistan exported 1.6 million tonnes of rice in the first eight months of this fiscal year, according to official data.

http://www.thenews.com.pk/arc_news.asp?id=3

 

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account deficit swells to $10.36bn ​

Friday, April 25, 2008

ISLAMABAD: The current account deficit (CAD) in the first nine months (July-March) of the current fiscal year stood at a hefty $10.46 billion which is up by 60 per cent or $3.85 billion than $6.41 billion recorded in the corresponding period of the last fiscal.

More worrisome was that during a month the CAD moved up by more than half a billion dollars ($0.58 billion) as during February 2008, it stood at $1.029 billion which further jacked up to $1.61 billion in March 2008.

The galloping current account deficit nature was very steep since the start of this fiscal as in the first quarter July-September, CAD stood at $2.24 billion, July-December $6.04 billion and now during the period under review it scaled up to unprecedented $10.46 billion.

During July-March, trade imbalance (in goods and services) goes up from $11.1 billion last year to $15.79 billion this year. Likewise, the current account deficit of the last year also included huge trade deficit owing to import of used cars, which were banned in the federal budget 2006-07 and resultantly CAD was slowed down in the later part of the year.

The average monthly incidence of the current account deficit was $712 million in the last fiscal year, but during the current fiscal year, the average monthly current account deficit is touching $1.14 billion.

This implies that the target of containing the current account deficit at 5 per cent of GDP as envisaged in the Annual Plan is most unlikely to be achieved.

Higher oil prices spiral since November 2007 might add to the woes on external front through widening trade imbalance. The government is already in a fix to contain fiscal deficit which has already hit one of the highest level of 3.6 per cent of GDP in the first half (July-December) for the last seven years.

Now it has become clear that fiscal deficit target of 4.0 of GDP would be breached by a fair margin and there are chances that current account deficit target would not be achieved as well. The new political set-up would also not be in a position to shelve its mega development projects and it has to finance fraction of the oil imports bill.

http://www.thenews.com.pk/arc_news.asp?id=3

 

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Inflation nullifies minimum wage rise ​

Friday, April 25, 2008

LAHORE: Though minimum wage is still low in Pakistan, the recent increase announced by the government has been nullified by inflation while industries have stopped further recruitments as the cost of doing business has increased.

The News has found that the increase in minimum wage to Rs6,000 has put an additional burden of Rs1.68 million annually on small industries employing 100 workers and Rs8.4 million on medium industries having a workforce of 500. These small and medium industries are established mostly in the textile sector that accounts for over 30 per cent of the total industrial force of the country. The rest work in medium and small engineering concerns, plastic and agro-based industries. New enterprises are not coming up which could have absorbed the unemployed.

The large capital-intensive enterprises employ a small number of people compared to the labour-intensive ones, which are under pressure but given the enabling environment, can employ more.

All Pakistan Textile Mills Association (APTMA) former chairman Abid Farooq, while commenting on the issue, said the increase in wages was announced at a time when the textile sector was already under pressure.

He said many factors were impacting the productivity of all industrial sectors. Industries remained closed for up to eight hours a day due to power shutdowns and even the most efficient industries could not survive if their production was curtailed by 33 per cent. Retrenchment was on the cards in all small and medium industries on this count only, he added.

He said the increase in minimum wages was announced immediately after the industries were burdened with a 23 per cent increase in electricity rates (the industrial electricity rates have been increased from Rs3.40 per unit to Rs5.04 per unit). He said a 16 per cent increase in petroleum rates in March and another seven per cent last week had also adversely impacted the costs of all industries, adding larger units might help survive all these additional cost factors because they at least have their own power generation units that ensure full productivity.

He said the SMEs had stopped further recruitments and the vacancies left unfilled were not being occupied just to cut costs. He said many SMEs were on the verge of collapse which would increase unemployment.

Chairman APTMA Punjab, Akber Shiekh, said the local textile industry buys cotton at import substitution rates because the local production has fallen short of industry demand. This adds to the cost as cotton constitutes for 70 per cent of the total input cost of yarn. He said no efforts have been made to increase cotton production through the certified BT cotton seed.

He said increased wages would not have hurt the industry if other costs were not increased. He said on average, spinning mills of 25000 spindles now pay Rs2.95 million due to the addition in electricity charges. He said the corruption and incompetence cost of the bureaucracy is even higher.

The News found that the construction industry that generally provides employment on a daily wage basis has not been impacted by the increase in minimum wage. The informal sector that also provides substantial employment has not implemented the minimum wage directive either, as it operates outside the ambit of law. The agriculture sector is also exempted from the minimum wage law. Only the registered productive sector has been affected by this directive.

The workers now face a dual dilemma of managing to keep their jobs intact and balancing their budgets on the increased minimum wage. The 23 per cent increase in petroleum rates in the past six weeks, 9 per cent increase in electricity rates and high food inflation during this period, has increased their expenses more than the increase in their wages.

The creation of productive income-earning opportunities to absorb the existing unemployed people and the future labour force, remains a formidable task in the context of resource constraint that Pakistan has been facing since the last two decades, and the inability of its planners to boost its industrial sector through increased market access.

http://www.thenews.com.pk/arc_news.asp?id=3

 

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Gems, jewellery sector asked to focus on US market ​

Friday, April 25, 2008

KARACHI: Pakistan Chamber of Commerce USA (PCC-USA) Vice President Abdul Qayyum Khan Kundi has said that Pakistan should concentrate on trading with the US gems and jewellery industry, which is worth over $13.6 billion and ideal to expand trade.

During a press conference here on Thursday, he said the country’s exports to the US were only worth $1.5 million in the gems and jewellery sector whereas India was the top most leading exporter closely followed by China, Thailand and Italy.

He further said that if Pakistan wanted to increase trade with USA then it would have to make efforts for increasing exports. He said that sadly, even while PCC-USA made the efforts to edge up joint ventures between the two countries, there was no response from the local counterparts here. Kundi said that according to a survey conducted by his organization, the gems and jewelry sector, handicrafts, marble and furniture are the most lucrative industries where Pakistan could enhance trade with the western country.

In this context, Pakistan Gems and Jewellery Development Company (PGJDC) in collaboration with Pakistan Chamber of Commerce USA (PCC-USA) are planning to organize a three day, single country gems and jewellery exhibition in Houston, USA in October 2008.

PGJDC CEO Fawad H Khan said that in this regard the MoU between PGJDC and PCC-USA has been finalized which will lead to organizing several single country gems and jewellery exhibitions in USA. He said that so far more than 55 Pakistani gems and jewellery traders from all over the country have shown their firm interest for participating in this exhibition. “They will represent the sector from a wide variety of gems and jewellery including rough and cut gem stones and mineral specimen, plain and stone studded gold and silver jewellery” he added.

Khan said that this exhibition would greatly help in tapping the new industrial links for gems and jewellery sector and would also pave the way for the industry to develop further business links to enhance the level of their designs and technology. PCC-USA President Muhammad Saeed Sheikh added that an American trade delegation was all set to travel to Pakistan during the summer to assess investment opportunities here led by the Texas state governor.

PGJDC Chairman Mutiullah Sheikh said that PGJDC is establishing Gems and Jewellery Common Facility Training & Manufacturing Centres (CFTMCs) enabling the industry to get staff trained on latest machines as well as use these facilities for the production of the orders.

http://www.thenews.com.pk/arc_news.asp?id=3

 

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Pakistan, Germany to finalise investment protection draft ​

Friday, April 25, 2008

LAHORE: Hectic negotiations are under way on a Bilateral Investment Protection Agreement between Pakistan and Germany, and hopefully a final decision on the text of the accord would be made this year.

This was stated by German Commercial Attache Patrick Heinz while talking to LCCI Acting President Mian Muzaffar Ali at the Lahore Chamber of Commerce and Industry on Thursday.

Heinz, who was quite optimistic about future trade relations between the two countries, said a large number of German companies have already started operations in Pakistan while renowned German IT giant SAP was also keen on investing in Pakistan.

Heinz added that within the EU, Germany was Pakistan’s biggest trading partner and that the German embassy in Islamabad was making efforts to further mutual trade between the two countries. He also emphasised the need for rapid exchange of delegations and frequent interactions between businessmen to boost foreign investment in Pakistan.

Speaking on the occasion, Mian Muzaffar Ali said Pakistan is strategically located, and with the construction of the Gwadar deep-sea port, foreign investors can further seek to boost trade relations with neighbouring Central Asian States and in the South Asian region.

http://www.thenews.com.pk/arc_news.asp?id=3

 

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Minister supports lucrative power sector for investors​

ISLAMABAD: In order to make power sector cash magnet for investors and to create investment friendly atmosphere, the policies should be investment friendly with simplified procedures.

Federal Minister for Water and Power, Raja Pervez Ashraf, stated this Thursday during a briefing given to him by Private Power and Infrastructure Board (PPIB). He also advised that after meeting the immediate power requirements, the focus should be on indigenous fuels and resources like Hydro and Coal.

Pervaiz said the government was committed to end the menace of load shedding in the country within the next three years and local and foreign investors might be welcomed with open hands in this respect.

Currently the portfolio of priority projects being processed by PPIB includes 39 power projects of around 10,000 MW, on different fuels and resources. The Minister was informed that eight projects totaling 1,667 have achieved financial closure, while another eight projects of 1,494 MW are expected to achieve their financial closures this year. It was informed that 615 MW of power will be available to the national grid by April 2009 from the private sector, which will increase to 1,667 MW by end of 2010, and a total of 3,750 MW will be supplied by the private sector by the end of year 2011. Two thermal power projects of 500 MW each at Faisalabad and Dadu are also being processed, through International Competitive Bidding (ICB) basis, and the response of the local and foreign investors has been very encouraging.

It was also briefed that 20 hydropower projects of about 4,500 MW are at different stages of processing, out of which, 15 projects of 3,950 MW have already been issued Letters of Interest (LOIs). Similarly for development of indigenous coal, LOIs have been issued to 4 companies with a cumulative capacity of 1,550 MW, while another 1,000 MW project based on Thar coal is being processed under international competitive bidding. In addition, two projects of 1,000 MW each on imported coal will be set up at Gadani by 2013, which will eventually use local coal from Thar.

Second Meeting: The Federal Minister for Water and Power also reviewed progress on Alternative Energy Projects. Chief Executive Officer, Alternate Energy Development Board (AEDB), Air Marshal (R) Shahid Hamid gave a briefing to the Minister today.

The Minister was informed that various projects of wind powered IPPs are being processed by AEDB, each of 50MW capacity. These projects will be installed along the general wind corridor along the coastline in Sindh. An area of 33,976 acres has been leased for these projects, which have been provisionally allocated for 24 such projects. The Minister was informed that Zolru Enerji of Turkey has initiated the energy purchase agreement with National Transmission and Dispatch Company for its 50MW wind power project The company also plans to install 06MW in the first phase of its 50MW wind power project, groundbreaking ceremony for which is likely to take place at the end of June 2008.

The minister was further informed that as part of 100 Days Programme, 1,762 homes in 31 remote, off-grid villages in all four provinces are being provided electricity by AEDB. AEDB is also to provide power to 4,00 villages in Balochistan and Sindh through Solar energy. So far 1,064 homes of District Tharparker in Sindh have been provided electricity by Solar Energy. A total of 2,500 homes will be provided with electricity in District Tharparker by AEDB by June 2008.

Daily Times - Leading News Resource of Pakistan

 

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Great potential to boost Pak, Swiss trade volume​

KARACHI: Bilateral trade between Pakistan and Switzerland has grown steadily in the last few year, however it is still less than the existing potential for trade between both the countries, Swiss Consul General in Karachi, Martin Beinz, said here on Thursday.

“More efforts are required to boost the bilateral trade volume by tapping this potential”, he said while speaking to members of Pakistan Hosiery Manufacturers Association (PHMA).

He said trade between the two countries could be enhanced through exchange of delegations and greater contacts between the businessmen of the two countries.

About the existing trade ties between the two countries, Consul General said, “Switzerland’s exports to Pakistan are mainly comprised of machinery, pharmaceuticals, and chemicals with textile machinery being on top.”

Whereas exports to Switzerland from Pakistan mostly consist of textile and garments and agricultural products as well as Switzerland remained among the top seven countries to make Foreign Direct Investment (FDI) in Pakistan.

Daily Times - Leading News Resource of Pakistan

 

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USAID launches project to improve education system​

ISLAMABAD: United States Director of Foreign Assistance and Administrator of the US Agency for International Development (USAID) Henrietta H Fore and Federal Minister for Education Ahsan Iqbal on Thursday launched a $90 million project to strengthen the basic education system in Pakistan.

“Pakistan’s basic education system must earn the trust and confidence of parents that their children will receive quality education, and we want to help in building a system that delivers on its promises,” a statement from the US Embassy quoted Fore as saying on the occasion.

She said it was up to the government and people of Pakistan to define the country’s goals towards education and to mobilise the resources that may help turn such goals into reality.

Separately, Fore also visited Prime Minister Yousaf Raza Gillani and Finance Minister Ishaq Dar to discuss the US development assistance to Pakistan. She reiterated the US government’s commitment to helping Pakistan in addressing its development challenges.

The commitment includes the provision of $750 million in projects to support development in the Federally Administered Tribal Areas (FATA). Since 2002, the USAID has provided more than a quarter of a billion dollars to reform and revitalise Pakistan’s educational system.

Gillani told Fore on Wednesday that Pakistan wanted to further expand its economic and trade links with the US to strengthen the long-term strategic relations between the two nations.

Daily Times - Leading News Resource of Pakistan

 

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Saudi Arabia pledges $187 million soft loan ​

ISLAMABAD (April 25 2008): Saudi government has pledged a soft loan of 187 million dollar to Pakistan. This was stated in a meeting of Minister for Finance, Ishaq Dar and Ambassador of Saudi Arabia Ali S Awadh Asseri in Islamabad, a private TV channel reported.

Out of the loan 40 million dollars have been allocated for the Golan Goal Hydro Power Project. The remaining amount of 147 million dollar would be utilised for development projects in Balakot and Rawalakot cities to offset impact of earthquake.

Business Recorder [Pakistan's First Financial Daily]

 

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South Asian products: PCC-USA proposes to develop Houston as distribution centre ​

KARACHI (April 25 2008): President, Pakistan Chamber of Commerce USA (PCC-USA), Muhammad Saeed Sheikh has said that the chamber has initiated a proposal to develop Houston as a distribution centre for South Asian merchandise with Pakistani products taking a lead.

Speaking at a meeting of Karachi Chamber of Commerce and Industry (KCCI), he said that the chamber would continue working on this proposal to contribute towards the economy of Houston and create new markets for Pakistani products.

He said that the chamber peruses its agenda of strengthening the friendship of Pakistan and USA through trade and development. In order to create market access for Pakistani exporters the chamber will organise a merchandise Expo by third quarter of 2008. This initiative will pave the way for our future leaders to achieve higher milestones.

He said that the chamber is also striving to improve Pakistan's image through promotion of trade and investment between the two countries. Muhammad Saeed Sheikh and President KCCI Shamam Ahmed Shamsi have agreed to form a 6-member consultative committee to co-ordinate dissemination of trade and investment news, rules and regulations, and other related information. He invited KCCI delegation to visit USA.

Business Recorder [Pakistan's First Financial Daily]

 

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‘Thar coal only answer to energy crisis’​

KARACHI, April 24: Experts at a seminar on Thursday expressed concern over very low power generation during the last nine years, and emphasised that huge deposits of Thar coal are the only answer to energy crisis in the country.

They said that the execution of Thar Coal Project, which is an integrated project of mining and power generation, be solely assigned to the Sindh Coal Authority after making it an independent professional organisation, with all decision-making and administrative powers so that companies engaged in this mega project be provided one-window facility.

At present, various provincial and federal ministries and other public sector organisations are involved at various stages or components which was leading to duplication of work and wastage of time and money.

The seminar also recommended that the Sindh Coal Authority should have its own independent chairman, instead of administered by the provincial minister for minerals.

The seminar titled “energy crisis: power generation from coal, a major option,” was organised by the Institute of Engineers Pakistan, in collaboration with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at the Federation House.Those who spoke included PPP Sindh council member Wali Mohammad Rahimoon, acting FPCCI President Mohammad Farooq Dadabhoy, Institute of Engineers Pakistan Chairman Zaffaruddin A. Zuberi, K K Sharma, PSO Chairman Sardar M. Yasin Malik, Aftab Ali Rahimoon, Dr Rafique Ahmed Khan, Syed Sibte Ahmed Jafri, Mohammad Abdullah Farooqui, Dr M Yaqoob Chugtai and Shiraz Ali Motandas. They gave presentations on how to make best use of huge coal deposits in Thar for the much-needed eclectic power generation and other industries without wasting further time.

The participants recommended that for realisation of targets and goals of mining coal of Thar for power generation on a fast track basis, the government should discourage use of gas and oil for new thermal power plants.

They, however, stated that the existing aging units in public sector be modernised and converted to combine cycle for enhancement of capacity and efficiency wherever possible.

It was suggested that apart from government functionaries, the following set of stakeholders be considered as an integral part of the project for their services:

The consultants who worked at Thar Coal Field on Coal Mining; investors for coal field and for setting up of power plant; experts working in mines and construction of plants.

They recommended formation of a task force, comprising three to four members from private forums, such as FPCCI, IEP, the consultants and the renowned professionals, to have an official status to liaise with government functionaries at federal and provincial levels for giving them an independent opinion on the status of the projects undertaken by the private and the public sector on the development of the coal mining and the integrated power plants.

For making Pakistan competitively attractive for investment in coal-mining, it was proposed that sovereign guarantees be provided on investment by investors and power purchase tariff should be on the basis of feasibility report without compromising the national interests.

The participants proposed display of all studies and recommendations on the website and for making public the comments from consultants, experts and other stakeholders for conclusions as to the viability of the Thar coal fields for mining and setting up of power plants at the mine’s mouth or other places and feeding the coal through transportation.

The government should ensure security of investment to investors on a long-term basis, and formulate an investor-friendly coal-mining policy without undue thresholds.

The experts recommended tax holidays for 15-25 years on all the required mining equipment, transportation equipment, power plant equipment and infrastructure.

Wali Mohammad Rahimoon, who is from Thar, emphasised that huge deposits of Thar coal are the only answer to energy crisis in the country.—APP

‘Thar coal only answer to energy crisis’ -DAWN - Business; April 25, 2008