Pakistan Cables NAVIGATING THE ESG IMPACT,

on 13/09/2024

In recent years, the private sector in Pakistan is being tasked to take on an increasingly larger responsibility in creating and supporting development initiatives, that are aligned to a business’s broader defined goals and objectives. Mounting pressure on national governments globally, consumer activism and reduced aid budgets to counter local crisis areas, the private sector is suited to identify and address social upliftment areas that contribute towards the globally defined sustainable development goals.
Private sector’s capacity for innovation and technology, access to resources and adherence to controls and monitoring also helps create transformative solutions to co-create opportunities for financial empowerment, social upliftment and more importantly self-sufficient sustainable business practices.
In June 2024, the Securities Exchange Commission of Pakistan (SECP) issued voluntary guidelines for public listed companies for reporting on Environment (E), Social (S) and Governance (G). This comes as reporting on ESG has become increasingly relevant across governments and businesses globally. ESG reporting is proving to be used as a strategic tool for businesses that helps map social consideration alongside sustainable business growth in the long term. In fact, proactively address ESG areas within a company can help identifying opportunities, risks and improved efficiencies for the business.
Given the global calls to respond towards climate action, Environment (E) is getting the most attention. Pakistan being the fifth most populous country in the world, is also among the worst impacted by climate risks. It is only natural that as a key player in the Industry, Pakistan Cables, for instance, was among the first few companies to respond to climatic action a few years ago by laying the foundation of the Pakistan Cables Urban Forest at its new manufacturing facility in Nooriabad, Sindh. The Miyawaki based Urban Forest, curated by Mr. Shahzad Qureshi, is home to 50,000 trees and 59 native species. It is also Pakistan’s first and largest urban forest on an industrial estate. Pakistan Cables was also among the first 26 companies of Pakistan, and only player from the industry, to pledge to the Business Ambition for 1.5oC Commitment. It aligns the company’s ambition with keeping warming to 1.5°C and reaching science-based net-zero emissions by 2050. As a true Industry pioneer, in 2021 Pakistan Cables became the only industry player to sign on to the Race to Zero ahead of the COP 26 in Glasgow. In 2023, Pakistan Cables became the country’s first building material company to have its science-based emission reduction targets validated and approved by SBTi. The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets. The Company’s science-based emission reduction targets are part of its long-term vision to develop its net zero strategy and is actively working to establish long term science-based net zero targets that are aligned with SBTi’s net zero criterion.
A cornerstone of the company’s approach to ensure environmentally friendly business practices are at play is by providing world class category solutions that are manufactured and distributed efficiently, optimise use of clean energy and build the world sustainably. The company’s new manufacturing facility at Nooriabad recently commissioned a 2MW on grid solar power plant and a water treatment facility. Furthermore, Pakistan Cables has the 14001:2015 certification, which reinforces the Company’s commitment to ensure its products meet the highest environmental standards and mitigate environmental impacts.
As a member company of the Amir S. Chinoy group, Pakistan Cables is aligned with the group’s approach on ESG with the same focus to their day-to-day work: creating long term value and a shared belief for nurturing the future.
Propelling its core values of Teamwork, Agility, Passion, Innovation and Transparency in all its areas of work and engagement with the its stakeholders and the communities is a way of life. Employees are trained to focus on a safety-first approach, environmental stewardship, and disciplined business management to help support decarbonizing of industrial activities.
In the “S” of ESG, which stands for “social” and refers to how a company’s operations impact people, Pakistan Cables has been active for decades promoting youth empowerment through various initiatives to help support and transform lives. For over seven decades, the company has implemented policies that promote fair wages, benefits and safe working conditions. Safety trainings are regularly conducted and an annual safety day is celebrated with much fervour to promote awareness of occupational safety among employees at large. In recent years as part of its commitment to uphold diversity, equity and inclusion and promote STEM based education, particularly among women, Pakistan Cables collaborated with the NED University and launched its flagship initiative, ASCEND. Through ASCEND internship opportunities and scholarships were offered to students enrolled in the electrical engineering department of the university. Aside to this, the company has offered educational scholarships to UET, Lahore and Faisalabad campuses too. During 2023, Pakistan Cables also launched the industry’s first internship program, PurAzm, which targeted the differently abled professionals. The initiative has been lauded and appreciated by all stakeholders. It’s crucial not to overlook the social aspect of ESG because a company’s impact on people affect its long-term success and sustainability. In the most recent European Union regulations, the social aspects of running businesses are also much more apparent and required to pay attention to. Social issues such as human rights, community impact, and diversity, equity and inclusion can affect customer trust and loyalty, investor confidence, and employee satisfaction. Pakistan Cables continues to empower vulnerable communities by supporting various education and health related initiatives, proactively advocating and working towards social sustainability. Setting up of its new manufacturing facility at Nooriabad resulted in job creation, fostering entrepreneurship that is much needed for stimulating economic growth. Furthermore, it helps reduce poverty, while empowering local communities, making it an essential partner in achieving sustainable development goals.
Finally, as the first and oldest public listed company on the Pakistan Stock Exchange, the “G” (governance) is as important for the company cannot be overlooked. Pakistan Cables has been a trusted manufacturer across generations. All efforts are made to ensure that adequate policies and procedures are in place that help organizations meet business targets along with environmental and social targets. The implemented governance framework ensure that the company continues to operate ethically, sustainably and responsibly. The company is well known to be TRUSTED NOT TO COMPROMISE – among all its valued stakeholder and patrons.
As the future of ESG in Pakistan continues to evolve rapidly owing to its impact on global supply chain and international communities, Pakistan Cables already has a head start and remains committed to bolstering organizational productivity, employee engagement and uplift vulnerable communities, living its vision of – Ignite Possibilities. Transform Lives. Instil Pride.

ESL Green Power Plantation Drive: Nurturing a Greener Future for Pakistan

on 13/09/2024

As Pakistan celebrated its 77 years of independence on August 14, Energy Solutions (Private) Limited (ESL) reaffirmed its commitment to sustainability with the ambitious Green Power Plantation Drive. Launched two years ago, this initiative aims to plant 13,000 trees, symbolizing the company’s unwavering dedication to environmental stewardship and its vision for a greener future.
Unity in Diversity, Strength in Trees
Just as trees gain strength in numbers, Pakistan’s strength lies in its diversity. ESL embraces this diversity, unified in its mission for a prosperous and sustainable Pakistan. With a strong commitment to environmental sustainability, ESL is making meaningful strides toward a cleaner, greener future. By expanding the Green Power Plantation Drive across all regional offices, turning it into a nationwide campaign, ESL underscores its belief that sustainability is essential to the nation’s future.
A Message from Mr. Tariq Haq, CEO – Energy Solutions Private Limited
During a ceremony at ESL’s head office in Karachi, Mr. Tariq Haq addressed employees and industry leaders, emphasizing the shared responsibility that comes with independence:
“As we celebrate our nation’s independence, we are reminded of the responsibility that comes with freedom. At ESL, we believe that a sustainable future is not just a choice but a necessity. Through our Green Power Plantation Drive, we are committed to planting 13,000 trees—one for every generator sold and every solar installation completed. This initiative is about more than reducing our carbon footprint; it’s about creating a legacy of environmental stewardship.”
Mr. Haq also extended an invitation to fellow business leaders, urging them to join this vital mission:
“Together, we can make a significant impact and create a greener, more sustainable Pakistan. Let us work together to ensure a brighter future for our nation and our planet. Happy Independence Day!”n

R-32 Fuss in Pakistan

on 13/09/2024

The development of difluoromethane (R-32) is one of the advances that has a substantially minor effect on the environment while being power-efficient and pocket friendly as compared to R-22 and R-410A. R-32 has a slight disadvantage of mild flammability which has led to few reported incidents of burning of indoor units, outdoor units and even the entire split system, resulting in the loss of numerous lives and damage to properties in Pakistan.
The growing awareness of climate change and the need to reduce greenhouse gas emissions have led to a global shift away from older refrigerants like R22 and R410A, which have higher Global Warming Potential (GWP). Countries are adopting stricter regulations to phase out these harmful substances, and the air conditioning industry is responding by exploring alternatives.
R32 (difluoromethane) is a next-generation refrigerant that offers several advantages over traditional options like R22 and R410A:
R32 has a GWP of 675, which is significantly lower than R410A (GWP of 2,088). This means that using R32 helps reduce the overall greenhouse gas emissions associated with air conditioning, contributing to global efforts to combat climate change.
R32 is more energy-efficient compared to R410A, meaning that air conditioning systems using R32 can achieve the same level of cooling while consuming less electricity. This translates into lower energy bills for consumers and reduced demand on the power grid, which is particularly important in countries like Pakistan where energy shortages are common.
R-32 is a mildly flammable gas (ISO 817:2014) being non-explosive and very difficult to ignite even when applied to direct flame. Being mildly flammable, it is classified as an A2L refrigerant, indicating low toxicity and low flammability.
R32 is easier to produce and requires less refrigerant charge in cooling systems, making it a cost-effective choice for manufacturers and consumers. Its higher efficiency also means that systems designed for R32 are generally more compact, reducing material costs and after-sales service costs.
Now the question is why the modern world and renowned brands like Daikin, LG, and Haier have shifted and successfully installed a lot of systems with zero accidents all over the world but Pakistan has reported numerous burning incidents. What should we do to accept R-32 as a refrigerant with complete elimination of any potential risk? Here are some steps that can be taken to ensure safety in Pakistan while maximizing the benefits of R32:
Understanding the root cause of the issue. Social media news is not reliable. Leading air conditioning companies should have R&D on the actual root cause and come up with a reliable solution that can openly be discussed on R&D forums in Pakistan.
Consumers should be educated about the benefits and associated risks of R32. Understanding how to operate and maintain air conditioning systems using R32 can help prevent accidents and ensure optimal performance.
Proper installation by certified professionals in R-32 units is crucial. Technicians should be trained in handling R32 to minimize the risk of leaks and ensure that the system operates safely and efficiently.
Governments and regulatory bodies should enforce strict standards for the use and handling of R32 refrigerants.
Use of R-32 in existing R-410A units should be strictly prohibited.
Leakage maintenance guidelines should be published in Urdu, which needs to be printed on equipment as well as circulated on media on regular basis.
Leakage detection sensors should be installed in units and preventive maintenance measures should be made necessary.
Robust construction of split systems along with its piping is the need of the hour. One of the serious issues is material cost for manufacturing which is reduced with the use of low cost/ thin copper pipes which should be standardized in manufacturing and the use of inferior materials in the manufacturing of R-32 units should be a punishable offense by law.
The amount of R-32 needed to be charged in a specific system should be clearly mentioned and followed at all times.
Brazing/welding shall not be done in any case during leakage at home and units shall completely be dismantled/vacuumed before doing any brazing/welding process and shall be done at the workshop only.
In Pakistan, as in many other countries, adopting R32 is not just a matter of choice but a necessity for aligning with global sustainability goals. The incidents of R-32 split units in Pakistan underscore the urgent need for safer and more sustainable refrigerants. R32 offers a promising solution, combining lower environmental impact with enhanced safety and efficiency. However, its adoption must be accompanied by responsible practices, including proper installation, maintenance, and adherence to regulatory standards. As we look to the future, continued R&D in refrigerants like R32 will be critical in driving the refrigeration industry towards a greener, more sustainable path. (The author is Chief Engineer NESPAK) n

Comparative Analysis of Economic Merit Order Based on Dispatch Point vs. Delivery Point for Consumer Benefits and kWh Rates: Examples from North America, Europe, India, and Pakistan.

on 13/09/2024

Abstract
The economic merit order in electricity markets determines the sequence in which power generation sources are dispatched based on their marginal costs. This paper explores two approaches to the merit order: dispatch point and delivery point, and evaluates their implications for consumers and electricity rates. Using examples from North America, Europe, India, and Pakistan the paper assesses which approach better benefits consumers and results in more efficient kWh rates.
Introduction
The merit order mechanism is crucial in electricity markets, aiming to ensure cost effective generation and distribution. This paper compares the dispatch point and delivery point merit orders, evaluating their impacts on consumer pricing and overall efficiency, with real world examples from North America, Europe, and India.
Conceptual Framework
2.1 Dispatch Point Merit Order
The dispatch point merit order ranks power plants based on the cost of electricity production alone. This approach is simple and focuses on minimizing generation costs, but does not consider transmission constraints or losses.
2.2 Delivery Point Merit Order
The delivery point merit order includes both generation and transmission costs. It ranks generators based on the total cost of delivering electricity to the consumer, reflecting a more comprehensive cost structure.
Comparative Analysis
3.1 North America
Dispatch Point:
Example: PJM Interconnection (U.S.)
PJM operates a regional transmission organization (RTO) that uses a dispatch point merit order. PJM’s market design focuses on minimizing the generation cost by dispatching the cheapest available sources first. This has led to relatively low electricity prices in some regions, but issues arise with transmission congestion.
Impact: While dispatch point pricing can lead to lower short-term rates, transmission constraints in PJM’s network can cause significant price spikes in congested areas, such as during high demand periods or extreme weather events.
Delivery Point:
Example: California Independent System Operator (CAISO)
CAISO incorporates both generation and transmission costs in its pricing model. The CAISO market design adjusts prices based on the delivery point, considering both the cost of generation and the impact of transmission congestion.
Impact: This approach can result in higher prices in the short term but offers a more accurate reflection of the true cost of electricity delivery, helping to manage transmission congestion and reduce volatility in pricing.
3.2 Europe
Dispatch Point:
Example: The British Electricity Trading and Transmission Arrangements (BETTA)
In the UK, BETTA uses a dispatch point merit order for generation. Generators are dispatched based on their marginal costs, which helps in maintaining low prices when generation costs are low.
Impact: While the dispatch point model has been effective in reducing short-term costs, transmission constraints and congestion can sometimes lead to price disparities across different regions.
Delivery Point:
Example: The European Network of Transmission System Operators for Electricity (ENTSOE)
ENTSOE’s framework often considers delivery point costs by integrating transmission tariffs into the pricing. This model helps manage cross-border electricity flows and ensures that transmission costs are accounted for in market prices.
Impact: The delivery point approach leads to more stable pricing across different regions and better reflects the actual cost of delivering electricity, though it can result in higher prices compared to the dispatch point model.
3.3 India
Dispatch Point:
Example: Indian Energy Exchange (IEX)
In India, the IEX uses a dispatch point merit order for day ahead market operations. This approach prioritizes generators based on their bid prices and marginal costs, aiming to minimize generation costs.
Impact: The dispatch point model has helped in lowering prices in areas with abundant cheap generation sources. However, India’s transmission infrastructure can cause significant losses and inefficiencies not reflected in this pricing model. 
Delivery Point:
Example: Power System Operation Corporation Limited (POSOCO)
POSOCO manages transmission and operates the national grid, considering both generation and transmission costs. The approach aims to optimize the total cost of electricity delivery, accounting for transmission losses and grid congestion.
Impact: Incorporating delivery point costs has led to more accurate pricing that reflects the true cost of electricity. This model helps in managing transmission constraints and reducing inefficiencies across the grid.
Pakistan’s Economic Merit Order:
In Pakistan, the economic merit order is managed by the National Transmission and Dispatch Company (NTDC) along with National Power Control Centre (NPCC) is responsible for controlling and monitoring Pakistan’s national power generation and transmission system. NPCC is responsible for ensuring the efficient and reliable operation of the national power grid. The NTDC/NPCC uses a dispatch point-based merit order system, where power generation sources are dispatched based on their marginal costs at the point of generation
Comparative Insights
Economic Efficiency:
Dispatch Point: Simplifies the dispatch process but may result in inefficiencies due to unaccounted transmission constraints. Examples from PJM and BETTA illustrate the potential for price volatility and regional disparities.
Delivery Point: Provides a comprehensive view of the total cost, improving overall system efficiency and stability. Examples from CAISO, ENTSOE, and POSOCO demonstrate how accounting for transmission costs can lead to more stable and fair pricing.
Impact on Consumers:
Dispatch Point: Often results in lower short-term rates but can lead to higher prices during periods of transmission congestion. This effect is evident in markets like PJM and IEX.
Delivery Point: May lead to higher short-term prices but offers better long-term stability and fairness. The delivery point model, as seen in CAISO and ENTSOE, aligns pricing with the actual cost of delivering electricity.
kWh Rates:
Dispatch Point: Generally results in lower short-term kWh rates but may not account for long-term transmission costs. Short-term benefits can be seen in markets such as BETTA and IEX.
Delivery Point: Provides a more accurate reflection of total costs, potentially leading to more stable kWh rates over time. Markets such as CAISO and POSOCO show that delivery point merit orders can reduce long-term price volatility.
Conclusion
The choice between dispatch point and delivery point merit orders has significant implications for electricity pricing and market efficiency. While dispatch point models can offer lower short-term rates, delivery point models provide a more comprehensive view of the total cost of electricity, leading to more stable and fair pricing. The examples from North America, Europe, India, and Pakistan illustrate that incorporating delivery point costs often results in more efficient and equitable outcomes for consumers, despite potential short-term price increases.n

Hope and Opportunities for Pakistani Engineers and Businessmen.

on 13/09/2024

Pakistan’s current economic conditions are indeed challenging, with high inflation, a depreciating currency, and a significant trade deficit. The country is facing a balance of payments crisis, and the IMF has extended a bailout package to support economic stability.
However, despite these difficulties, there are reasons to remain hopeful about Pakistan’s economic future. The government has taken steps to address the crisis, including implementing austerity measures, increasing taxes, and promoting exports.
Moreover, Pakistan has immense potential for growth, with a large and young population, vast natural resources, and a strategic location bridging Asia and the Middle East. The country has made significant progress in areas like tech startups, e-commerce, and renewable energy.
Investors are taking notice, with foreign investment increasing in sectors like energy, infrastructure, and telecommunications. Pakistan’s diaspora community is also playing a vital role in sending remittances and investing in their homeland.
To tap into this potential, the government is focusing on improving the business environment, enhancing trade facilitation, and promoting tourism. Initiatives like the China-Pakistan Economic Corridor (CPEC) and the Special Economic Zones (SEZs) are expected to attract foreign investment and create jobs.
The Middle East, particularly Saudi Arabia, has emerged as a hub for economic growth and development, offering a plethora of opportunities for Pakistani engineers and businessmen. Among the most exciting prospects is Saudi Arabia’s futuristic city, Neom, which is set to revolutionize the region’s economy.
Located on the Red Sea coast, Neom is a $500 billion mega project aimed at diversifying Saudi Arabia’s economy beyond oil. This futuristic city will be a hub for innovation, entrepreneurship, and sustainability, offering vast opportunities for Pakistani professionals.
Infrastructure Development, Renewable Energy, Smart City Technologies, Civil, mechanical, HVAC, Electrical and other engineering works are waiting for Pakistani engineers and professionals. Pakistani engineers can contribute to this massive project.
Neom offers opportunities for Pakistani businessmen as well. They can invest in various sectors, including manufacturing, logistics, and services. Pakistani entrepreneurs can collaborate with Saudi counterparts to establish joint ventures in Neom, leveraging each other’s strengths.
The current economic conditions are tough. Pakistan has faced similar challenges in the past and has always emerged resilient. The country’s strong social fabric, vibrant culture, and determined people are its greatest assets.
As the government continues to implement reforms and address economic challenges, there is reason to believe that Pakistan will bounce back stronger. With patience, perseverance, and collective effort, the country can unlock its vast potential and achieve sustainable economic growth.
Let us remain hopeful and work together towards a brighter economic future for Pakistan.n