White Oil Pipeline Project: A Major Leap for Pakistan’s Energy Infrastructure.

on 25/09/2024

Pakistan is on the brink of a significant transformation in its energy landscape with the commencement of the White Oil Pipeline Project. Recently backed by the Special Investment Facilitation Council (SIFC), this ambitious initiative is set to enhance the country’s oil distribution network, ensuring a more reliable and efficient supply of petroleum products.
Key Features of the Project
The White Oil Pipeline will stretch over 477 kilometers, connecting crucial locations such as Machike, Thalian, and Taru Jabba. Managed by the Frontier Works Organization (FWO), this project is spearheaded by key stakeholders including Pakistan State Oil (PSO), Pak-Arab Refinery Limited (PARCO), and Inter-State Gas Systems. The pipeline runs parallel to the motorway in two main sections: Machike-Thalian and Thalian-Tarujabba.
Economic and Environmental Benefits
One of the primary goals of the White Oil Pipeline is to ensure a steady supply of oil while simultaneously reducing transportation costs. With an initial capacity of 7 million tonnes per annum, and the potential to expand to 10 million tonnes, the project is expected to save billions for the national treasury. Moreover, by decreasing reliance on road transport, the initiative aims to minimize environmental impact and enhance safety in the transportation of petroleum products.
The pipeline will directly connect to major refineries at Attock, Chak Pirana, and Faqirabad, significantly improving the efficiency of oil distribution across the region. This strategic connectivity is crucial for a country where timely and safe transportation of oil is essential for economic stability.
Government Commitment
The SIFC’s support underscores the government’s commitment to advancing Pakistan’s petroleum sector. With the project set to begin construction soon, stakeholders are optimistic about its swift completion. The initiative not only addresses immediate logistical challenges but also lays the groundwork for a more robust energy infrastructure in the years to come.
The White Oil Pipeline Project represents a pivotal development in Pakistan’s efforts to modernize its energy infrastructure. By ensuring a reliable supply of oil and reducing costs, this initiative holds the promise of significant economic benefits and a more sustainable approach to energy distribution. As construction progresses, it is clear that this project is a cornerstone for the future of Pakistan’s energy sector. – ER Report

NESPAK supervising Wagha Check Post Upgradation, The construction of the world’s third largest flagpole part of the project.

on 25/09/2024

The Punjab government is busy giving a new look to the joint check post at Wagha border along the international border with India. Currently, work is in progress on the project under the supervision of NESPAK and is expected to be completed by December 2025.
The prestigious “Expansion of Joint Check Post Wagha” project is aimed at enhancing security, facilities, and tourism infrastructure at the Wahga border crossing. The project’s estimated cost is PKR 3,000 million, funded by the Punjab Government, and the Works Department of Pakistan Rangers Punjab is acting as the Client.
Quite recently, Zargham Eshaq Khan, Managing Director of NESPAK, along with Rana Dawood, Executive Vice President of the company, visited the expansion site of Wagha check post. They were warmly welcomed by Zulfiqar Ali Tariq, Project Manager, along with the NESPAK supervision team, representatives of Pakistan Rangers Punjab, and the contractor, Ms. Shahid Builders.
During the visit, Khan thoroughly inspected the site, assessing all potential risks related to Health, Safety, and Environment (HSE). He inquired about the detailed working methodology and project progress. Khan emphasized the importance of identifying all critical activities and calculating zero float to ensure the timely completion of the project. He also directed a detailed radiography of the Pakistan flag to identify all potential risks associated with the relocation of the 410-feet high Pakistan pole at Wagha.
Construction work officially commenced on June 10, 2024. The project’s duration is 18 months, with a phased completion approach to ensure minimal disruption to border operations. The expansion will increase spectator capacity from 8,000 to 24,000, featuring notable additions such as a state-of-the-art historical museum showcasing the history of the Wagah border and its significance. Modern waiting lounges with amenities for travelers and tourists. A green room for VVIPs and dignitaries. The project involves relocating and increasing the height of the world’s 5th tallest flagpole from 115 to 135 meters, making it the world’s 3rd highest flagpole. The flagpole will be designed to withstand extreme weather conditions and will be illuminated at night, making it an iconic landmark.
The building’s design draws inspiration from the crescent and star, symbolizing the historic significance and cultural heritage of the Wagah border. The design also incorporates sustainable and energy-efficient features. Principal Architect Zulfiqar Ali Tariq from the A&P Division at NESPAK House will oversee the project’s execution, ensuring timely completion and quality assurance as Project Manager.
Meanwhile, Pakistan Rangers strategized an expansion to tackle the issue of limited space, which previously accommodated 8,000 – 9,000 spectators. As per the new plan, the sitting capacity of spectators will be increased. Under the new plan, the capacity will be increased to hold between 20,000 – 22,000 people.
In order to deal with the funding and staff requirements, the Punjab government is supervising the project. Project funds are being provided by the Punjab Government and NESPAK, an international level engineering consultancy organisatin, was staffed for the design and construction supervision of the project.
The relocation of the Flag Pole is also part of the project. The existing flag pole is off-center and needs to be relocated to be centrally aligned as per Alamgiri Gate.
Major facilities to be added to the historical site and the international border include the design of the entrance, which is called Alamgiri Gate. The structure’s height will be 166’-0” and the covered area is 155,000 Sqft. There will be four sitting arenas for the spectators according to the building level. Two VIP Lounge/Waiting areas will be part of the expansion project. A total of 15 Rangers offices will be constructed, while Rangers Barracks could accommodate: 100 persons. A History Museum on a site area of 10,600 Sft will be constructed while a media gallery will cover 2000 Sft.

Why Did Roads Constructed After 2022 Washed Away? Murad Shah Initiates Inquiry.

on 25/09/2024

Sindh Chief Minister Syed Murad Ali Shah presided over a meeting to assess the damage caused to city roads by the heavy rainfall in 2024. He approved Rs1.5 billion for repairs and directed the Local Government Department to initiate an inquiry into the roads that were constructed or repaired after 2022, which have since been washed away.
“It is unacceptable for the quality of work to fall short of standards, and strict action must be taken against those responsible,” the Chief Minister stated, emphasizing the need for accountability in the construction and maintenance of public infrastructure.
The meeting, held at the CM House, was attended by Minister for Planning and Development Nasir Shah, Minister for Local Government Saeed Ghani, Mayor of Karachi Murtaza Wahab, Chief Secretary Asif Hyder Shah, Chairman of Planning and Development Najam Shah, Secretary for Local Government Khalid Hyder Shah, Secretary for Municipal Corporation Karachi Afzal Zaidi, and Special Secretary for Finance Asghar Memon.
The Chief Minister directed Minister Saeed Ghani to initiate an inquiry into the roads constructed or repaired after 2022 that have since been damaged. “This indicates that the quality of work was not maintained, and those responsible must be held accountable,” he said.
Mayor Murtaza Wahab informed the Chief Minister that 17,861,500 square feet of roads were damaged during the 2024 rainfall. The damage breakdown is as follows: District South—909,500 square feet, East—795,000 square feet, Central—832,000 square feet, West—13,750,000 square feet, Korangi—5,555,000 square feet, Malir—625,000 square feet, and 395,000 square feet of flyovers and bridges.
The Chief Minister was informed that 120 roads, flyovers, and underpasses in the city require patchwork. This includes 20 roads in District South, 22 in East, seven in Central, 38 in West, 11 in Korangi, 12 in Malir, and 10 flyovers.
He noted that approximately Rs1.5 billion is required to repair and reconstruct the damaged roads, bridges, and flyovers, which he approved with directives to ensure quality work.
Mayor Murtaza Wahab also informed the Chief Minister that under the CLICK program, six major projects will be initiated, including the construction of a flyover at the railway line on Khalid Bin Waleed Road in District Malir, the construction of Mehrunnisa Hospital Road leading to Nasir Jump in Ibrahim Hyderi, rehabilitation of the road from Bab-e-Khyber to Sector-4 in Orangi, construction of a road and drainage system from Khawaja Ajmer Nagri Roundabout to Manghopir via Dadex Factory in North Karachi, construction of Captain Kamal Sher Khan Shaheed Football Stadium and Sports Complex in District West, and construction of Shahzad Football Stadium in Malir.
In a separate meeting, Chief Minister Syed Murad Ali Shah identified that 219 roads, totaling 3,545.39 km, in the Hyderabad Division and 178 roads, totaling 124.81 km, in the Sukkur Division, have been damaged by floods. He directed the Water and Sanitation Department to estimate the damages and begin repair works.
This meeting was also held at the CM House and attended by Minister for Planning and Development Nasir Shah, Minister for Works Haji Ali Hassan Zardari, Chief Secretary Asif Hyder Shah, Chairman of Planning and Development Najam Shah, Secretary of Finance Fayaz Jatoi, Secretary of Works Mohammad Ali Khoso, and other concerned officials.

Pakistan’s Proposal for a New Steel Mill in Karachi.

on 25/09/2024

The Pakistani government is considering a proposal to establish a new steel mill in Karachi with cooperation from Russia. Both countries have agreed to form working groups to advance the project.
This month, Deputy Minister of Industry and Trade of the Russian Federation, Aleksei Gruzdev, met with Pakistan’s Minister for Industries, Production, and National Food Security, Rana Tanveer Hussain, in Islamabad. The minister revealed that the government has earmarked 700 acres of land from Pakistan Steel Mills (PSM) for the new mill.
Despite possessing substantial iron ore reserves estimated at 1.887 billion tonnes, Pakistan imports approximately $2.7 billion worth of iron and steel each year. There is a consistent gap between domestic production and demand, estimated at 3.1 million tonnes last year. Pakistan’s per capita steel consumption is lower than that of many developing countries, indicating significant growth potential over the medium to long term. The minister noted that the efficiency of Pakistan’s steel industry is hampered by fragmentation, with 600 small units, and reliance on outdated technology.
The proposed site in Karachi is conveniently located near Port Qasim, which will help reduce transportation costs for raw materials. Experts from Pakistan’s industrial and agricultural sectors are scheduled to visit Russia, marking a significant step in strengthening bilateral ties.
The meeting included several officials: Denis Nevzorov, Deputy Trade Representative of the Russian Federation in Pakistan; Saif Anjum, Secretary for Industries and Production; Ali Tahir, Secretary for National Food Security and Research; Amir Mohyudin, Additional Secretary for National Food Security; Abdul Samad, Deputy Chief of Industries and Production; and Engr. Muhammad Shoaib, Executive Engineer at PSM.
Moreover, Federal Minister for Commerce Jam Kamal Khan welcomed Mr. Gruzdev for discussions aimed at enhancing trade relations. They focused on economic cooperation and exploring new trade opportunities. Jam Kamal highlighted the untapped potential in Pakistan-Russia trade, emphasizing that with active engagement, trade volume could significantly increase.
The upcoming 5th Joint Working Group (JWG) meeting, scheduled for September 26-27, 2024, in Islamabad, was also discussed. The agenda will include industrial cooperation, customs, investments, transport and logistics, and agricultural trade.
Mr. Gruzdev expressed satisfaction with current trade relations but acknowledged that there is significant room for improvement. He outlined areas for future cooperation, including the supply of mineral fertilizers, modernization of Pakistan’s fertilizer plants, export of agricultural machinery, railway machinery supply, collaboration in the pharmaceutical industry, and digital technologies.
He also expressed Russia’s willingness to provide expertise in modernizing Pakistan’s fertilizer plants and offer training programs for Pakistani farmers to enhance productivity. Both ministers recognized strong growth potential in agriculture, pharmaceuticals, livestock, and steel, expressing optimism for the future of Pakistan-Russia economic relations.
A Glance at Defunct Pakistan Steel Mills
The Pakistani government spent billions of rupees on Pakistan Steel Mills (PSM) to cover worker salaries through bailout packages. Initially expected to be a key driver of economic development, PSM became a wasted opportunity that could have strengthened the economy. The mill’s production eventually fell to zero. Outdated machinery failed to meet modern standards, and financial and administrative constraints prevented self-reliance.
Production at PSM halted in June 2015 when Sui Southern Gas Company stopped gas supply due to unpaid bills. By the end of FY 2008, the mill reported losses of PKR 16.9 billion, which ballooned to PKR 118.7 billion within five years and reached approximately PKR 200 billion in 2018, later touching around PKR 400 billion.
Experts say one of the main reasons for PSM’s failure was the interference of successive political governments, which prioritized political affiliations over merit when appointing CEOs and key personnel. This led to poor management over the years.
Another significant factor in PSM’s decline was its reliance on imported steel. Despite its potential, PSM failed to meet domestic demand and struggled to compete with countries like China, which produced high-quality steel using advanced technology and skilled labor. The China-Pakistan Economic Corridor (CPEC) further increased steel imports. The State Bank of Pakistan indicated that cheap imports from China and Ukraine harmed local production, which fell by 8.6% in the first half of FY16 compared to a growth of 31% in the same period of FY15.
Comparing PSM to steel industries in developed countries like Japan highlights the importance of a skilled workforce. Unfortunately, PSM lacked qualified labor. In developed nations, workers are selected based on expertise, ensuring efficiency. However, PSM was overstaffed; while 9,000 employees would have sufficed, 17,000 were hired, creating an additional financial burden. – ER Report

Amreli Steels Temporarily Shuts Down Karachi Plant Amid Economic Turmoil.

on 24/09/2024

Amreli Steels Limited, a leading steel manufacturer in Pakistan, has announced the temporary closure of its Karachi production facility due to severe economic challenges. The company, which is known for producing high-quality steel products used in various construction projects, has cited rising operational costs, inflation, and a volatile exchange rate as the main factors behind this decision.

In an official statement to the Pakistan Stock Exchange (PSX), Amreli Steels explained that the current economic environment has made it increasingly difficult to sustain normal production levels. The rising cost of raw materials, coupled with the depreciation of the Pakistani rupee, has significantly increased the company’s expenses, making it unfeasible to continue operations at the Karachi plant for the time being.

The company emphasized that this shutdown is a temporary measure, and it plans to resume operations as soon as the economic situation improves. However, the exact timeline for this remains uncertain, as the broader economic challenges facing Pakistan’s manufacturing sector show no signs of immediate resolution.

This move by Amreli Steels reflects the broader struggles within Pakistan’s industrial sector, where companies are grappling with the impact of inflation, high energy costs, and fluctuating currency values. These issues have not only affected the profitability of many manufacturing firms but have also led to widespread disruptions in production and supply chains.

Amreli Steels’ decision to halt operations at one of its key facilities highlights the severity of the economic difficulties facing Pakistan’s manufacturing industry. It also raises concerns about the potential impact on employment and the broader economy, as the steel industry plays a crucial role in the country’s infrastructure development.

The company reassured its stakeholders that it is closely monitoring the situation and remains committed to maintaining its position as a leading player in the steel industry. However, the current economic challenges have forced Amreli Steels, like many other companies, to take difficult decisions in order to navigate through this turbulent period.

For more detailed information, you can read the full article on Business Recorder’s website.