Pakistan Economy: News & Discussion

ezsasa

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'Thar coal mine set to become Pakistan’s biggest industrial site'
By Reuters
Published: February 27, 2017

THARPARKAR DISTRICT: A line of trucks weaves in and out of the open coal pit that has been dug in the Thar desert in Sindh. Below the massive hole lies one of the world’s largest coal reserves, untapped until now.

For years Pakistan used its Thar coal reserves as a bargaining chip in global climate negotiations. Since it was not mining the coal, it argued, it should receive easier access to international climate finance and to clean technology to help it grow in a cleaner and more sustainable way.

But as part of its attempt to end the country’s energy crisis which has caused frequent power cuts for years, the government is encouraging mining companies to the area.

Traditionally Pakistan has had relatively low emissions of climate changing gases. But under the global Paris Agreement to address climate change, the country has admitted it is likely to see a four-fold increase in emissions by 2030.

Thar coal project enters construction phase

The coal mine is set to become Pakistan’s biggest industrial site, said Shamsuddin Shaikh, head of the Sindh Engro Coal Mining Company (SECMC), a joint venture between the Sindh government and Engro Powergen.

The company is mining one per cent of the deposits in one of 13 investment blocks. Coal is “the worst fossil fuel there is”, he told the Thomson Reuters Foundation.

But “Pakistan needs electricity — its GDP is currently affected by the lack of power”, he said. The estimated 175 billion tonnes of watery, low energy coal was first discovered in 1992 but because of its poor quality, most companies found it too costly to mine.

In 2012, SECMC, took up the challenge, convincing eight companies to join them, two of them Chinese. They are also now building a 660 megawatt coal power plant nearby — which the company wants to increase to 3,300MW by 2022 — and the Sindh government has improved roads and built an airport in the desert for the project.

Pakistani climate expert Qamaruz Zaman Chaudhry, currently advising the Asian Development Bank, said he has told the government “not to lock the country for the next 25 to 30 years into coal technology”. “Our role as a responsible member of the global community in combating climate change needs to be fully taken into consideration,” he said.

Most of the world, including China, is moving away from coal-based power generation, Chaudhry said.

Under the Paris climate agreement, countries are meant to be shifting to clean, sustainable energy as part of global attempts to curb greenhouse gas emissions and prevent the worst impacts of climate change, from worsening droughts and floods to accelerating sea level rise.

Move to tap Thar coal reserves in line with global trend

“Surely the indications are that the time may not be far when … countries not following the green energy path would be penalised. Our long term planning should not be focused on coal,” Chaudhry told the Thomson Reuters Foundation.

For the past three months villagers near the mine have been protesting SECMC’s mining plans, saying the project will pollute their water and threaten their ancestral lands.

The company plans to transport effluents from the watery mine via a pipeline into a reservoir which will cover at least 1,500 acres (600 hectares) of land once it is built. This will be done for the next two and a half years to dry the mine, and then the water will be treated and re-used in the coal power plant.

The pipeline, linking the reservoir to the coal mines 26 km away, is almost complete.

“They will pump dirty water from the mine to store in the (reservoir) and that will pollute the sweet water in our wells. Engro is willing to give us money but we don’t want it. This is our ancestral land and we won’t leave,” said Padma Bai, one of the villagers protesting the project.

Leela Ram, whose large home lies close to the reservoir, said it should be built nearer the coal mine.

“Why can’t they dump the water where there are no people?” she asked. The villagers have filed a case in the Sindh High Court and applied for a stay order to block the reservoir’s construction.

The court hearings are underway but construction goes on. “I will go all the way to the Supreme Court if need be,” said Ram, who is leading the protest.

The company said the site originally planned for the effluents was the nearby Rann of Kutch salt marshes but since they are a Ramsar Site for migratory birds the natural depression of Gorrano was selected instead.

The company is providing alternative pasture for villagers living near the Gorrano reservoir, and building new homes, schools and healthcare facilities for two villages being relocated to make way for the mine and power plant, said Mohsin Babbar, the company’s media manager.

“This will be a benchmark project – and will set the standard for others,” said Shaikh, referring to the new homes, a planned 70 bed hospital and a training centre for the local people.

“Of course if they (villagers) are not happy, this project will not work,” he added.
How many solar plants are there is Pakistan? Or rather how many GW of solar electricity is generated?
 

vinuzap

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Akhand chutiyapa on how most of the projects are becoming defaults and foreign exchange is being eroded by all weather friend and nanha jihadi dancing with lollypop on mouth

https://www.dawn.com/news/1294281

ISLAMABAD: The government has decided to give up more than 1,000 megawatts of imported coal-fired power projects to contain reliance on imported fuels and reduce foreign exchange loss.

Under two separate but related decisions, the government has shunned a 660MW imported coal-based power project of the Hub Power Company (Hubco) under the “actively promoted projects” of the China-Pakistan Economic Corridor (CPEC).

Also, Karachi-based Siddiqsons Energy has been asked to set up its 350MW plant on domestic coal from Thar instead of imported coal.

A senior government official told Dawn on Friday the two decisions were taken by the board of directors of the Private Power and Infrastructure Board (PPIB) — a one-window arrangement for private investments in the power sector — led by Minister for Water and Power Khawaja Mohammad Asif.

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In November 2014, the PPIB approved processing of 1,320MW imported coal-based power project at Hub, Balochistan, by Hubco. That decision led to formation of a joint venture between Hubco and China Power International Holding Company. In June 2015, the PPIB issued a letter of intent (LoI) to the joint venture.

The move aims to contain reliance on imported fuels and cut foreign exchange loss
Based on that letter, the National Electric Power Regulatory Authority (Nepra) approved the upfront tariff for the power project in February this year. The joint cooperation committee of the CPEC included a 660MW unit of the project in the list of ‘priority projects’ and the remaining 660MW in actively promoted projects under CPEC framework agreement of Nov 8, 2014.

The PPIB also issued letter of support (LoS) to the project in April this year on the basis of Nepra tariff and performance bond of $6.6 million at the rate of $5,000 per megawatt with the financial close deadline of Jan 12, 2017.

The LoS required the project company to negotiate and sign implementation agreement with the PPIB and power purchase agreement (PPA) with the Central Power Purchasing Agency (CPPA) by Oct 11, 2016 to enable signing of the agreement by the January 2017 deadline.

The existing 1,292MW Hubco project was also required under an agreement with the government signed at the time of clearance of circular debt in May-July 2014 to convert its thermal machines to coal-based generation. This did not materialise as planned.

The failure of the China Power Hub Generation Company to execute these projects within the stipulated time was to become “a default” and require the PPIB to encash performance guarantee. The negotiations for implementation and power purchase agreements continued until the end of August 2016 and the company demanded signing of the implementation agreement to avoid default.

In the meanwhile, the PPIB board decided in June this year to stop processing of power generation based on imported fuels because of substantial capacity already contracted that was enough to meet power demand until 2022 and to remain watchful of considerable foreign exchange erosion. This led to the decision of signing implementation and power purchase agreements with China Power Hub Generation Company for only 660MW instead of 1,320MW.

Likewise, Siddiqsons Energy Ltd (SEL) has been asked to set up its 350MW project proposed at Port Qasim on Thar-based coal or else its LoS for the project on the originally envisaged project based on imported fuel would not be allowed to continue.

Originally, the SEL was required to achieve financial close by Aug 31, 2016. But the State Bank of Pakistan disallowed the company to sign Rs45 billion financing agreement with the United Bank Ltd to avoid foreign exchange erosion and instead bring foreign financing. As a result, the SEL declined to achieve financial close and demanded one-year extension.

Consequently, the SEL was compelled to convert to local coal if it wanted to continue with the power project and bring foreign financing. The negotiations led to agreement on extension in financial close deadline until August 2017 without doubling the performance bond and issuance of a letter of consent by the CPPA and National Transmission And Despatch Company Ltd and modification in tariff accordingly.

Interestingly, after delaying one project and giving up another for being imported fuel based, the PPIB in a recent meeting floated a 1,200MW project on imported liquefied natural gas. An official said that with a tight schedule for the proposed LNG based project, only a contractor that already has the plant available could meet deadline, unlike original manufacturers.
 
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Indx TechStyle

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India's finest :hail:
Not for very long, dollars will flow in your gutters after CPEC.
'Thar coal mine set to become Pakistan’s biggest industrial site'
By Reuters
Published: February 27, 2017

THARPARKAR DISTRICT: A line of trucks weaves in and out of the open coal pit that has been dug in the Thar desert in Sindh. Below the massive hole lies one of the world’s largest coal reserves, untapped until now.

For years Pakistan used its Thar coal reserves as a bargaining chip in global climate negotiations. Since it was not mining the coal, it argued, it should receive easier access to international climate finance and to clean technology to help it grow in a cleaner and more sustainable way.

But as part of its attempt to end the country’s energy crisis which has caused frequent power cuts for years, the government is encouraging mining companies to the area.

Traditionally Pakistan has had relatively low emissions of climate changing gases. But under the global Paris Agreement to address climate change, the country has admitted it is likely to see a four-fold increase in emissions by 2030.

Thar coal project enters construction phase

The coal mine is set to become Pakistan’s biggest industrial site, said Shamsuddin Shaikh, head of the Sindh Engro Coal Mining Company (SECMC), a joint venture between the Sindh government and Engro Powergen.

The company is mining one per cent of the deposits in one of 13 investment blocks. Coal is “the worst fossil fuel there is”, he told the Thomson Reuters Foundation.

But “Pakistan needs electricity — its GDP is currently affected by the lack of power”, he said. The estimated 175 billion tonnes of watery, low energy coal was first discovered in 1992 but because of its poor quality, most companies found it too costly to mine.

In 2012, SECMC, took up the challenge, convincing eight companies to join them, two of them Chinese. They are also now building a 660 megawatt coal power plant nearby — which the company wants to increase to 3,300MW by 2022 — and the Sindh government has improved roads and built an airport in the desert for the project.

Pakistani climate expert Qamaruz Zaman Chaudhry, currently advising the Asian Development Bank, said he has told the government “not to lock the country for the next 25 to 30 years into coal technology”. “Our role as a responsible member of the global community in combating climate change needs to be fully taken into consideration,” he said.

Most of the world, including China, is moving away from coal-based power generation, Chaudhry said.

Under the Paris climate agreement, countries are meant to be shifting to clean, sustainable energy as part of global attempts to curb greenhouse gas emissions and prevent the worst impacts of climate change, from worsening droughts and floods to accelerating sea level rise.

Move to tap Thar coal reserves in line with global trend

“Surely the indications are that the time may not be far when … countries not following the green energy path would be penalised. Our long term planning should not be focused on coal,” Chaudhry told the Thomson Reuters Foundation.

For the past three months villagers near the mine have been protesting SECMC’s mining plans, saying the project will pollute their water and threaten their ancestral lands.

The company plans to transport effluents from the watery mine via a pipeline into a reservoir which will cover at least 1,500 acres (600 hectares) of land once it is built. This will be done for the next two and a half years to dry the mine, and then the water will be treated and re-used in the coal power plant.

The pipeline, linking the reservoir to the coal mines 26 km away, is almost complete.

“They will pump dirty water from the mine to store in the (reservoir) and that will pollute the sweet water in our wells. Engro is willing to give us money but we don’t want it. This is our ancestral land and we won’t leave,” said Padma Bai, one of the villagers protesting the project.

Leela Ram, whose large home lies close to the reservoir, said it should be built nearer the coal mine.

“Why can’t they dump the water where there are no people?” she asked. The villagers have filed a case in the Sindh High Court and applied for a stay order to block the reservoir’s construction.

The court hearings are underway but construction goes on. “I will go all the way to the Supreme Court if need be,” said Ram, who is leading the protest.

The company said the site originally planned for the effluents was the nearby Rann of Kutch salt marshes but since they are a Ramsar Site for migratory birds the natural depression of Gorrano was selected instead.

The company is providing alternative pasture for villagers living near the Gorrano reservoir, and building new homes, schools and healthcare facilities for two villages being relocated to make way for the mine and power plant, said Mohsin Babbar, the company’s media manager.

“This will be a benchmark project – and will set the standard for others,” said Shaikh, referring to the new homes, a planned 70 bed hospital and a training centre for the local people.

“Of course if they (villagers) are not happy, this project will not work,” he added.
Cost??
And chances to sell it here, we need more energy means.
 

Neo

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Not for very long, dollars will flow in your gutters after CPEC.
Not before goras will be seen begging in Indian roads as per prediction :yo:


Cost??
And chances to sell it here, we need more energy means.
Thar coal reserves are estimated at 175 billion ton, for sure there will be exports.
But this (brown) coal is of inferior quality compared to the deposits found in Kalabagh and Chiniot. I would like to see them exported.
 

Indx TechStyle

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Not before goras will be seen begging in Indian roads as per prediction :yo:

At least not after that, 3-4 decades ago, our GDP per capita was just your 52%, today we lead by 34%.
Thar coal reserves are estimated at 175 billion ton, for sure there will be exports.
But this (brown) coal is of inferior quality compared to the deposits found in Kalabagh and Chiniot. I would like to see them exported.
Got my answer, let's get ahead.
Forget Pakistan and China and take care of your RANDI mata who's spreading her legs for Russia, Israel, France and now Russia. A complete orgy, enjoy!
Jai Hind :basanti:
We at least tend to pay them if buy anything unlike some other countries who "gift" land to them, take aids.
Come on, you need foreign financing, India is itself a financer of foreign militaries.
 

Neo

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At least not after that, 3-4 decades ago, our GDP per capita was just your 52%, today we lead by 34%.

Got my answer, let's get ahead.

We at least tend to pay them if buy anything unlike some other countries who "gift" land to them, take aids.
Come on, you need foreign financing, India is itself a financer of foreign militaries.
Let's not get into d*ckmeasuring again and keep your cheap shots to yourself.
The thread is about Pakistan, don't bother me dragging India into it over and over again.
 

Indx TechStyle

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Let's not get into d*ckmeasuring again and keep your cheap shots to yourself.
The thread is about Pakistan, don't bother me dragging India into it over and over again.
It's not me, it was the automobile article bringin India here.
 

Neo

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German truck maker MAN SE to set up assembly plant in Pakistan
By Farhan Zaheer
Published: March 2, 2017

Company also expected to export trucks from country, say industry officials. PHOTO: REUTERS

KARACHI: German truck maker MAN SE is at an advanced stage of setting up a plant in Pakistan, industry officials say.

Forecasting greater demand of heavy vehicles under the China-Pakistan Economic Corridor (CPEC), vehicle manufacturers are flocking to Pakistan to explore opportunities of investment with MAN SE being the latest addition to the growing list.

Europe to be largest market for Pakistan’s textiles

MAN SE, which has been watching the Pakistan market for over five years, is expected to officially announce its decision within a couple of months.

It is pertinent to mention that 75% of MAN SE’s ownership rests with the Volkswagen Truck and Bus GmbH, a wholly-owned subsidiary of Volkswagen AG.

Industry officials say this is a big development for Pakistan because the company is also expected to export trucks from the country.

The National Logistic Cell (NLC) is expected to give significant orders to MAN SE because Pakistan’s leading logistic company is looking to replace its old fleet, an auto industry official informed.

Officials from the German company are also coming to Pakistan to participate in the Pakistan Auto Show (PAPS) 2017, being held from March 3 at the Expo Centre, Karachi.

CPEC is expected to generate huge demand for trucks in Pakistan and industry officials say Pakistani companies like NLC would prefer to use German trucks due to quality concerns. Local industry officials say German trucks are better placed to commute on extraordinary high altitude of Karakoram Highway (KKH) – one of the highest paved roads in the world that connects Pakistan and China.

In February 2012, German Embassy’s Commercial Section Head Samy Saddi, while talking to media, said that German auto giant MAN was looking at Pakistan as a potential market.

The 250 year-old company operates through fully owned subsidiaries or joint ventures with local companies in India, Poland, Turkey, China, the US, the UAE South Africa, Uzbekistan, Portugal etc.

After years of stagnant economic activity and poor automobile sales, Pakistan is witnessing huge demand in heavy vehicles due to CPEC, macroeconomic stability and relative improvement in the country’s security situation.

Earlier, it was reported that Volkswagen Commercial Vehicles is in final talks with Premier Systems Private Limited – the authorised importer of Audi vehicles in the country – to set up a manufacturing/assembly plant for its Amarok and T6 (transporter range) models.

17 predictions for Pakistan’s economy in 2017

In the past year, a number of international auto makers have expressed interest to set up manufacturing plants in Pakistan.

France’s Renault and South Korea’s Hyundai and Kia have announced they will soon start assemblies in Pakistan, in partnership with local companies.

This will mark a return for Kia and Hyundai, which left in the previous decade when their local partner suffered financial problems.

Published in The Express Tribune, March 2nd, 2017.
 

Indx TechStyle

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German truck maker MAN SE to set up assembly plant in Pakistan
By Farhan Zaheer
Published: March 2, 2017

Company also expected to export trucks from country, say industry officials. PHOTO: REUTERS

KARACHI: German truck maker MAN SE is at an advanced stage of setting up a plant in Pakistan, industry officials say.

Forecasting greater demand of heavy vehicles under the China-Pakistan Economic Corridor (CPEC), vehicle manufacturers are flocking to Pakistan to explore opportunities of investment with MAN SE being the latest addition to the growing list.

Europe to be largest market for Pakistan’s textiles

MAN SE, which has been watching the Pakistan market for over five years, is expected to officially announce its decision within a couple of months.

It is pertinent to mention that 75% of MAN SE’s ownership rests with the Volkswagen Truck and Bus GmbH, a wholly-owned subsidiary of Volkswagen AG.

Industry officials say this is a big development for Pakistan because the company is also expected to export trucks from the country.

The National Logistic Cell (NLC) is expected to give significant orders to MAN SE because Pakistan’s leading logistic company is looking to replace its old fleet, an auto industry official informed.

Officials from the German company are also coming to Pakistan to participate in the Pakistan Auto Show (PAPS) 2017, being held from March 3 at the Expo Centre, Karachi.

CPEC is expected to generate huge demand for trucks in Pakistan and industry officials say Pakistani companies like NLC would prefer to use German trucks due to quality concerns. Local industry officials say German trucks are better placed to commute on extraordinary high altitude of Karakoram Highway (KKH) – one of the highest paved roads in the world that connects Pakistan and China.

In February 2012, German Embassy’s Commercial Section Head Samy Saddi, while talking to media, said that German auto giant MAN was looking at Pakistan as a potential market.

The 250 year-old company operates through fully owned subsidiaries or joint ventures with local companies in India, Poland, Turkey, China, the US, the UAE South Africa, Uzbekistan, Portugal etc.

After years of stagnant economic activity and poor automobile sales, Pakistan is witnessing huge demand in heavy vehicles due to CPEC, macroeconomic stability and relative improvement in the country’s security situation.

Earlier, it was reported that Volkswagen Commercial Vehicles is in final talks with Premier Systems Private Limited – the authorised importer of Audi vehicles in the country – to set up a manufacturing/assembly plant for its Amarok and T6 (transporter range) models.

17 predictions for Pakistan’s economy in 2017

In the past year, a number of international auto makers have expressed interest to set up manufacturing plants in Pakistan.

France’s Renault and South Korea’s Hyundai and Kia have announced they will soon start assemblies in Pakistan, in partnership with local companies.

This will mark a return for Kia and Hyundai, which left in the previous decade when their local partner suffered financial problems.

Published in The Express Tribune, March 2nd, 2017.
Any manufacturing one?
...............
 

sthf

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Butter Chicken

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As govt aims to widen tax net, return filers shrink 17%

ISLAMABAD: In an unimpressive development, Pakistan’s tax base has shrunk further as only one million people have filed income tax returns in the current tax year, a decrease of almost 17% or 200,000 people, calling into question claims of broadening the tax base.

https://tribune.com.pk/story/1343196/govt-aims-widen-tax-net-return-filers-shrink-17/
wow,tax collection is decreasing,illiteracy increasing,this is some next level qtiyapa
 

bose

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One just have to wait for CPEC to complete, please be patient, it is almost done !! once it is completed all the ills with Pakistan will go... Pakistan will become economically developed country [ read slave of China ] and its cricket team will again start winning trophies ...
 

Satybharat

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