Five blocks awarded to KPOGCL

on 20/08/2017

Oil & gas: Center vs Provinces

Khyber Pakhtunkhwa Oil and Gas Company Limited (KPOGCL) has been awarded five blocks for exploring oil and gas in the province. The move has worried the Federal Ministry of Petroleum and Natural Resources  FMPN which claims it cannot be done with competitive bidding.

It is the very first award which the concerned ministry has not given nod for. Rather, it says it has not given clearance for as many as 41 blocks yet to be explored. Only the one called desert has been cleared.

The ministry has written to the defense division, which has issued NOC for the award the blocks cannot be awarded to the company without competitive bidding. The blocks where NOC has been issued include Dera Ismail Khan East Block, Miran Block, Lakki Block, Nowshera Block and Dera Ismail Khan West Block.

Director General Petroleum Concessions (DGPC) has reportedly said in his communication with the ministry that none of the 41 blocks except “the desert” had been cleared. It because of this reason the ministry has not been able to initiate the bidding process for awards of the blocks.

DG. PC claimed that the subject of oil and gas is included in part-II of Federal Legislative List (FLL) and, as per constitution, the executive authority on the matter rested with the federal government.

KPOGCL may be one of the companies, which may participate in bidding round either as operator or non-operator. Therefore, the blocks cannot be awarded to the company without competitive bidding.

The role and function of the provincial directors are subject to administrative control of the undersigned and therefore they cannot interact with any ministry/ division/department/ institution without prior written approval of the DG PC.

As a matter of principle, the provincial directors are not allowed to issue letter to any federal ministry/division/department and can only liaison with the government of the concerned province, the letter said.

DG PC has asked the defence division to confirm that clearance of five blocks mentioned at para-5 above is not specific to the KPOGCL and that this ministry may initiate a competitive bidding process after which block will be granted to successful bidders.

Officials in KP view the situation differently and believe the letter was in sheer violation of the constitution which has given equal rights to the federal and provincial governments regarding management of oil and gas sector.

Article 172(3) of the Constitution inserted through the 18th Amendment defines the ownership of provinces and the federal government in mineral oil and natural gas.

They said that in pursuance of Article 172(3), the Council of Common Interest (CCI) approved Petroleum Policy 2012 formulated by Ministry of Petroleum, Directorate General of Petroleum Concessions DGPC has to be reorganised.

Provinces have been making requests for the reorganization of the directorate but all went in vain. The federal government has to enable a more proactive management of resources through establishment of a reorganised DGPC comprising of a federal and provincial representatives with federal director as ex-officio director general and providing the necessary control and procedures to enhance the effective management of Pakistan’s petroleum reserves.

Provinces say the federal government has failed to implement one of the more important clause of the Petroleum Policy 2012, which is in total violation of the 18th amendment and contempt to the Council of Common Interest (CCI)’s decision.

It merits mentioning that Sindh, Baluchistan and the Khyber-Pakhtunkhwa have appointed provincial directors but DGPC is not paying salaries to them.

Canada may help Pakistan in mining sector

on 20/08/2017

High Commissioner of Canada Perry John Calderwood believes Pakistan and Canada have good potential to enhance cooperation in ICT, agriculture, energy and mining. Private sectors of both countries, views have to play the leading role in exploiting these opportunities.

Canada, he claimed was developed in oil and gas exploration and hydro and solar power and Pakistan could benefit from its expertise to improve its energy generation.

Addressing business community at Islamabad Chamber of Commerce and Industry (ICC&I) he said Pakistan was a potential country for business and investment but Canadian investors were avoiding to visit Pakistan due to security concerns. However, he said the security situation had improved and he was hopeful the Canadian investors would explore Pakistan.

Khalid Iqbal Malik, President Islamabad Chamber of Commerce and Industry, said Pakistan and Canada enjoyed old friendly relations as they established diplomatic relations in 1947. However, bilateral trade of just over $1 billion in 2015 did not reflect the real potential of both countries. He said that trade in limited items was the main reason of low trade volume and stressed that both countries should focus on trade diversification to improve bilateral trade figure. He said that trade balance was in favor of Canada and it should enhance its imports from Pakistan as many Pakistan products could meet the needs of Canadian customers at affordable cost. He emphasized that Canadian businessmen should benefit from Pakistan’s IT-enabled services in animation and gaming, retail banking and finance, mobile content, document management and call centers.

ICCI President said that many sectors of Pakistan’s economy including oil and gas, infrastructure, power generation, information and communication technologies, mining, agro business, wood sector and science and technology offered great investment potential to Canadian companies and they should explore those sectors.

He said Pakistan needed more oil rigs and mining equipment to exploit its vast natural resources and Canada should take benefit of these opportunities. He said Canadian investors should also explore joint ventures and investment in CPEC projects in Pakistan. He said that Pakistani exporters have to face cumbersome visa formalities for attending trade fairs in Canada while its travel advisories discouraged Canadian business people from visiting Pakistan.

کچھ لفظوں کی کہا نی۔۔۔۔۔۔۔ خرچہ

on 16/08/2017

محمد صلاح الدین

ہماری  عوام ٹیکس بہت کم دیتی ہے، مشورہ دیں کہ ٹیکس آمدنی بڑھ جائے

 

میں نے انگریز ماہر اقتصادیات سے مشورہ مانگا

لیکن دنیا میں پاکستانی تو سب سے ذیادہ خیراتی اداروں کی مدد کرتے ہیں۔

یہ بات درست ہے میں نے تسلیم کیا

پھر آپ کی حکومت اور اہلکار کرپٹ اور نا اہل ہیں، وہ بولے

جس دن آپ کی حکومت اور ریاستی اہلکاروں نےایمانداری اور اہلیت کے ساتھ عوام کو 

 حت، تحفظ اور دیگر ضروریات زندگی  فراہم کرنا شروع کر دیں اس دن آ پ کی ٹیکس آمدنی خود بہ خود بڑھ گی آسان فارمولا ہے، جو حکومتیں عوام پر خرچہ کرتی ہیں عوام  ان کو خرچہ دیتےہیں

If CPEC is a doom, can we avert it?

on 10/08/2017

 Yes, surely provided we pick a right path,

says Syed Sibte Ahmed Jafri

by Manzoor Shaikh & Muhammad Salahuddin

If you view Chinese the way Syed Sibte Ahmed Jafri, the CEO of Jafri and Associates does, you will surely add up to the concerns which are being widely spread in the wake of China Pakistan Economic Corridor (CPEC). But it is not despair only that results from such a view. There is a lot of signs of opportunity provided we succeed to choose the right path.

We asked Mr, Jafri as to what side of divide he finds himself on while viewing the CPEC.

ER: Is it an opportunity or a path to the collapse of Pakistani industry and turning us into a consumer market?

SSAJ: I have been visiting the US since 1980s. Initially, when I would visit shopping centers, there were hardly any American products. Only Japanese products were there. No Chinese or Indian products could be found. Slowly and gradually, Indian and Malaysian products started to appear. The time passed and now for the last five years, almost everywhere I find Chinese products. Take an example of android phones only. It is competing with iPhone in the market and its prices are much cheaper besides all qualities of iPhone. Chinese have captured the market of a stronger country like the US. Not only that but products like steel, turbines, power plants and others you name it are coming from China. All big western companies have set up their plants in China. They are continuing their brands made in China. If it can happen with the US then what about us. Once China enters in Pakistan with full force what shall we do especially in a situation when we don’t feel proud of doing anything good?

I have the experience of visiting Shahrah-e-Resham (Karakoram Highway) while it was being constructed. There were two worlds, different from each other. Since a subsection on Pakistani side was handed over to Chinese, I had a chance to see it. It was unbelievable. It was like an army of robots which was working there. Once the siren rang they started work, stopped for lunch and read quotes of Mao Zedong. They moved like ants. They strictly followed this timetable from dawn to dusk. They had the whole job. We can understand from this example.

Yet, there is another example too. Chinese did some wind projects here. If you visit there was a huge security. It was not for the people who go inside; it was meant to stop insiders from coming out. There are thousands of Chinese prisoners who were working. They worked like machines.

Almost no salary they were getting. Actually, they were serving their terms. Europeans use machines whereas the Chinese do it with manpower. It sounds a little funny but if you actually see it happening then you will realize who you are competing with. They have everything; they have competed the best European technology; they have abundant money; their banks are the wealthiest. They have the habit of meeting deadlines. How can we compete with them?

They have to transport their goods to the world. It is a must for their survival. They shall reduce 10 thousand kilometers of distance through CPEC. Gwadar is now under their control. They have everything at hand now. What they want now is infrastructure. It includes power for which they have installed power plants. What would you give them? Nothing! They will arrange everything including water and security.

Chinese psyche

They don’t have any consideration for forgiveness and forgetting. They don’t spare difference of opinion. We can recall the Tiananmen Square.

ER: Don’t you think the people ruling this country know what all you are talking about? Then what is the compulsion of being drifted towards that end?

SSAJ: I don’t think so that our people are aware. What is our interest is something they (the ruling elite of Pakistan) don’t know about. Have a look at Karachi only. They don’t know how the people are living in localities situated on the outskirts of the city. The people at the helm of affairs are ignorant. They are not bothered either. The modern world has an efficient system of information collection through intelligence sources. It is not the same case here. Our ruling elite is not bothered at all. When it comes to their personal interest only, they appear to be moving. Looking at the history of the country, only Z.A Bhutto was bothered.

ER: Do you think our military establishment is also is in t he dark? How can one believe they also don’t know about the picture you are depicting here?

SSAJ: There is no difference, though there must be some honest ones. They are not answerable. They can’t be depended upon. But still there is a hope that the honest people will rise.

ER: Is there any hope for corrective measures?

SSAJ: The only possibility is that Pakistan is protected by Allah. Sincerity with the nation is a must. We follow religion in personal lives but in business. It is crystal clear in Pakistan. The industrialists are not honest. What are they doing? There are many success stories also. All people are not the same. Many are kings in their businesses. There would be many opportunities as well in the CPEC. The honest will prevail. I am convinced Allah exists and also His system. If we follow Allah and the Sunnah we will succeed. Pakistan is the largest country in terms of donations. Edhi was born here and so is Sailani doing charity in Pakistan.

ER: Besides religion we need money to be involved in the CPEC? The people say we don’t have money.

SSAJ: I don’t agree with this notion. Why big money? It can begin with smaller amounts of money. Chinese will give work to local companies also but honesty and hard work is a prerequisite. We shall have opportunity in the CPEC but it depends how we avail it.