Tag Archives: Karachi

Navigating Thar Coal Dilemma: A Complex Energy Future for Pakistan

on 09/10/2024

In the heart of Pakistan’s energy discourse lies the Thar coal gasification debate, a contentious issue that juxtaposes the nation’s pressing energy needs against its environmental commitments. A recent study has surfaced, shedding light on the complexities surrounding coal gasification—a process argued to have a lesser environmental footprint compared to the direct burning of coal for power generation. However, the steep costs and intricate technology associated with coal gasification present formidable challenges for Pakistan, raising questions about its feasibility and sustainability.
At the launch of this pivotal study, former Minister for Climate Change Malik Amin Aslam articulated the gravity of Pakistan’s situation. “We are caught in a serious dilemma,” he explained. “On one hand, we require affordable energy, which can be harnessed from our indigenous resources like Thar coal. On the other, we face international obligations that discourage us from expanding our reliance on fossil fuels, given their significant contributions to climate change.”
To extricate the nation from this paradox, Aslam emphasized the urgent need for innovative technological solutions. “We must pursue methods that allow us to generate cheap energy while minimizing our carbon footprint,” he stated. He underscored the necessity of complementary nature-based solutions to offset the carbon emissions generated during power production. However, he was candid about the financial barriers that obstruct such advancements. “Both the technological and nature-based solutions demand substantial investment that Pakistan currently lacks. It is imperative that developed nations and international financial institutions recognize this reality. Without their support, we may have no choice but to exploit available resources, regardless of the environmental consequences,” he cautioned.
The study, conducted by the Policy Research Institute for Equitable Development (PRIED) in collaboration with the National University of Science and Technology (NUST), provides a comprehensive analysis of coal gasification’s potential and pitfalls. It highlights that while coal gasification offers a relatively cleaner alternative to coal burning, the associated costs and operational complexities may prove insurmountable for a developing country like Pakistan.
Environmental activist Ali Tauqeer Sheikh also weighed in during the event, stressing the importance of aligning energy policies with Pakistan’s commitments under the Paris Agreement. “Our energy decisions must not only fulfill our international responsibilities but also address the concerns of communities that bear the brunt of these projects,” he urged. Sheikh emphasized that a more equitable approach is needed to ensure that energy development does not come at the expense of vulnerable populations.
Haneea Isaad, an energy finance expert, echoed these sentiments, pointing out that several coal gasification initiatives have floundered in countries like the United States, India, and Indonesia, even when substantial subsidies were provided. “The government must conduct a thorough examination of viable alternatives before moving forward with coal gasification projects in Pakistan,” she advised.
Researcher Manzoor Ahmed Alizai, also affiliated with PRIED, reiterated the trend of project failures, warning that the past should inform future decisions. “The global landscape has seen multiple coal gasification projects either fail or be abandoned. We must learn from these experiences to avoid repeating the same mistakes,” he remarked.
Dr. Majid Ali, a faculty member at NUST and the study’s lead author, presented a critical comparison of energy sources. He argued that while coal gasification presents certain advantages over direct coal burning, it still cannot compete with renewable energy sources like solar power, especially when considering price and environmental impacts. “In the long run, solar energy and other renewables stand as the more sustainable and economically viable options,” he concluded.
As Pakistan grapples with its energy crisis, the discourse around Thar coal gasification serves as a microcosm of the broader challenges facing developing nations. Striking a balance between meeting immediate energy needs and adhering to global climate commitments remains an uphill battle. The way forward necessitates not only innovative solutions but also robust international cooperation and financial support to ensure that Pakistan can forge a sustainable energy future that benefits both its citizens and the planet. – ISLAMABAD: ER Report

PEC Elections 2024 TEP, PEG-NEA begin exercises; Najeeb busy cobbling alliance

on 05/08/2024

The alliance between the Professional Excellence Group (PEG) and the National Engineers Alliance (NEA) has created an interesting situation for engineers and their groups across Pakistan. Waseem Nazir and Qadir Shah, leading their respective groups, struggled to forge an alliance, which consequently led other groups and influential engineers, including the Pakistan Engineers Forum (PEF) to rethink their positions in the elections.
Before the PEG-NEA alliance, Waseem Nazir’s negotiating team was in talks with PEF for jointly contesting elections, while Qadir Shah and his team were on the verge of closing doors on Jawed Salim Qureshi’s The Engineers Pakistan (TEP). However, TEP’s core committee did not approve of picking Qadir Shah as the joint candidate for the chairman’s post.
Interestingly, despite the majority belief within Qadir Shah’s group that Shah cannot win the election as chairman independently, they are supporting a non-NEA leader for the chairman of the council once again. Before supporting Waseem Nazir, Qadir Shah’s group had agreed to back Najeeb Haroon as chairman, aligning with the Constructors Association of Pakistan (CAP) and personalities like Dr. Niaz Akhtar. Equally interesting is the fact that both Najeeb Haroon and Waseem Nazir hail from PEG.
NEA had opened talks with Jawed Salim Qureshi who, according to Shah’s engineers, had agreed to throw his weight behind Shah for the top slot but stepped back later. Behind-the-scenes discussions apart, prospects of the Shah-Qureshi alliance had sparked widespread discussions in the engineering fraternity, much like the talk after Shah’s alliance with Waseem Nazir. After an unsuccessful attempt with Jawed Salim Qureshi, Shah’s group found itself in a challenging situation and apparently had two options. ‘One, Shah should fight alone and lose the elections; and two, he should stand behind Najeeb yet again and lose,’ says one of his close associates. He said Waseem Nazir was the best solution in the given circumstances for winning the elections.
The NEA-PEG alliance, a senior TEP engineer says, will force Jawed Salim Qureshi to work hard and lure more and more engineers for support. Although Punjab would be the real battleground, the group has to seriously look into issues in Sindh—the second-largest province of Pakistan—where TEP has to face the Qadir Shah group now with Waseem Nazir.
Before falling for Waseem Nazir, NEA had some solid and some wavering support for Najeeb Haroon, who had hopes that his erstwhile allies would back him for the second tenure. ‘It was Qadir Shah who refused in point blank to stand alongside Najeeb,’ revealed an NEA leader.
Najeeb Haroon, the incumbent chairman of the council, is faced with a challenge to cobble together remaining groups and personalities for shaping a coalition that could be as influential as TEP and NEA. He is looking towards Ashfaq Shah, PEF, estranged associates of Waseem Nazir, and influential engineers, attempting to forge a kind of arrangement. Among them, any alliance with Ashfaq Shah may be a distant possibility for Najeeb Haroon, as Shah is reportedly adamant about his stance on the chairman’s post.
The PEG-NEA alliance has not only affected Najeeb Haroon’s calculations; PEF also has to rethink their strategy as the group was reportedly in advanced talks with the PEG team. They must be reevaluating the situation and weighing their options: supporting Najeeb Haroon, Ashfaq Shah, or going alone. In the 2021 elections, PEF was part of the National Engineers Alliance but withdrew at the last minute, claiming betrayal over seat allocations in the governing body. PEF leaders assert they had signed an agreement with Najeeb Haroon, which he did not honor.
Now, with Najeeb Haroon being one of three options, PEF must make a decision in the coming days. Whether they will be able to make a significant impact remains to be seen, as PEF may not support Ashfaq Shah, being a smaller group for the chairman’s post.
This week’s update: Engr. Waseem Nazir, leading the Professional Excellence Group (PEG), and Engr. Qadir Shah, leading the National Engineers Association (NEA), have decided to jointly contest the PEC Elections 2024 scheduled for August 18. The new alliance has announced that Engr. Nazir will be the coalition’s candidate for the post of Chairman, and Engr. Raghib Shah for Senior Vice Chairman.
The top leadership of PEG and NEA met in Karachi to forge an alliance for the upcoming Pakistan Engineering Council (PEC) Elections 2024, as stated in today’s NEA press release. Recognizing the importance of unity over individual ambitions, NEA and PEG have decided to merge their efforts and contest the elections under the unified banner of PEG-NEA.
The press release reads: “This collaboration combines the wealth of local experience with the innovative perspectives of global thought leaders. Together, they aim to transform PEC into a dynamic, forward-looking organization that meets international benchmarks and standards.” Engr. Waseem Nazir has been nominated as the joint candidate for Chairman, while Engr. Raghib Abbas Shah will stand for Senior Vice Chairman. Candidates for the remaining positions of vice chairmen of all provinces and members will be announced shortly.

PEC’s Make in Pakistan Policy Proposes 15-year Localization Plan

on 29/02/2024

Aimed at controlling trade deficit through self-reliance and creating local industrial initiatives, the Pakistan Engineering Council (PEC) has proposed a policy titled ‘Make in Pakistan’ that the authors believe would improve the country’s GDP growth, build the capacity of engineering professionals, and encourage investments.
The draft of the policy which is in circulation among engineering circles does not bear any names of the authors or the PEC committee that has undertaken this effort. Also, no major groups of the engineering fraternity knew about making such a policy. To the surprise of many, either no member of the management committee or scantly few had a hint.
The draft talks about the traditional woes of the country’s economy entangled in a vicious circle that takes off from the increased dependency on import-based consumption leading to an extensive burden on Foreign Exchange reserves to dependence on global lenders and the consequences for the country and its people.
The policy proposes to revisit the existing situation in the manufacturing sector of Pakistan by Promoting a culture of Localization as a workable instrument in the form of Import substitution. For that matter, we need to create a healthy “Industrial Culture for Localization of Equipment / Products.” To support this cause; Policy Framework for “MIP” is proposed as a viable, sustainable solution for economic reforms and a first step towards indigenization.
To get rid of the adverse impact on economic growth, the policy has proposed a under that maximizes localization of Production of Engineering Goods (EGs) through indigenous resources, and import substitution to cater to the domestic consumer & industry demands. taking solid steps through various measures to ensure “Technology Transfer and build Technology Acquisition Houses are ensured.
This plan also includes collaboration with advanced/ developed countries in a phased yet systematic manner. The policy also focuses on enhancing exports of Medium to Hi-tech products resulting in earning precious foreign exchange and job creation for youth, especially for Technicians, IT Professionals, Computer Scientists, Technologists, and Engineers.
The document identifies areas such as Automobiles and Components, Mining, Gemstones & Exploration, Agri-tech and Food Processing, Construction and Machinery, Energy Sector with a focus on Renewable Energy, Oil and Gas, IT and Software, Defense Manufacturing, Roads and Highways, Sports Industry, Leather Products, Medical and Healthcare Equipment, Biotechnology and Pharmaceutical, Electrical Equipment and Machinery, Media, Entertainment, Ports and Shipping Equipment, Textiles and Finished Derivative, Electronic Components, Systems and PCB Manufacturing, Chemicals, Railway Industry, Domestic Appliances, Telecommunication Equipment, Artificial Intelligence, Product and Process Designing, Cutlery & Sanitary, Waste Management & Recycling.
The policy says the PEC will act as a statutory body for structuring the MIP policy framework, implementation, and periodic review.
In addition, the PEC proposes legal reforms and incentives to promote the manufacturing sector, such as offering tax breaks/rebates, simplifying regulatory processes, and easing foreign investment restrictions through the Act of Parliament for continuity and sustainability of MIP Policy for the entire 15 years.
PEC has been proposed to lead all regulatory bodies dealing with product certification standards, quality assurance, and implementation of good engineering practices (PNAC, EDB, DRAP, PSQCA CBTL, etc.) needs to be established to certify National R&D, perform conformity assessment, and issue product, process and services certification including software under PEC in collaboration with all stakeholders.
The Industrial Development Bank of Pakistan (IDBL) which was established in 2018 should be made effectively functional with the allocation of funds for financing the engineering industry to process development and automation, establishment of local test facilities, supervisory control, technology transfer and transition. Funding may be provided after thorough scrutiny on an ROI basis.
The promotion/posting and financial benefits of the Trade attachés of Pakistan embassies should be linked with the export performance to the country of their posting.
The policy paper has also talked about Improving the Business Environment for which it has suggested bolstering the manufacturing sector.
It says the government needs to address some critical concerns such as 1) Improving the ease of doing business, 2) Simplifying regulatory and bureaucratic procedures, 3) Removing unnecessary barriers to facilitate manufacturing and trade through Investor facilitation cells, provision of supporting platform for new start-ups and Coopting of regulatory measures for encouraging indigenization of products and technology. This initiative will create a conducive environment for local investors to establish their businesses in the country and attract Foreign Direct Investments (FDIs) in the manufacturing sector.
On Industry-Academia Collaboration, it talks about involving all the stakeholders by collaboration of industry and academia and providing a platform as a pool of experts, retired professors, and professionals for bridging the industry–academia gap by: 1) Development of technology diffusion & transfer cells, 2) Involving experts from industry and academia, 3) Demand-driven projects/ research papers by students and faculty, 4) Establishment of a pool of experts to support the industry on the format of JICA, CBI, etc, 5) Capacity building of lead auditors and consultants for all relevant international certifications, 6) The engineering companies/ entities, including design, manufacturing, consultancy, and execution to be regulated by PEC, 7) regulating of engineers, professionals, and faculty members to carry out research projects relevant to the need of the industry to the extent of commercialization., 8) promoting and providing financial benefits of the faculty engaged with successful completion of industrial project be considered 04 times the 01 research paper. – Karachi: ER Report

Learning from China a must to promote sustainable development of chemical industry

on 03/01/2024

Moazzam Ghurki, president of Pakistan China Joint Chamber of Commerce and Industry (PCJCCI), said during a think tank session held at PCJCCI Secretariat the other day that Pakistan does not have mature technology to produce petrochemical complex facilities or cracking units, which is a very big constraint to the development of its chemical industry. He stressed that Pakistan can collaborate with China and learn from China’s experience to promote the sustainable development of the chemical industry and give full play to the industry in the national economic construction. President PCJCCI also highlighted that there is a vast potential of Pakistan in chemical manufacturing and processing. Our vision was to transform the chemical industry of Pakistan from an import-oriented to an export-oriented industry. Fang Yulong, senior vice president PCJCCI, further added that with the rapid development of biotechnology, the biochemical industry has injected new vitality into the traditional chemical industry and opened up new development directions and insights. He further explained that China has a growing influence in the field of biochemical industry globally. Both approaches will be of great benefit to Pakistan. Zafar Iqbal, chairman Standing Committee on Chemical Industry (PCJCCI), said that with the continuous growth of economy and population base, the demand of Pakistani citizens for chemical products is increasing day by day. The country is highly dependent on imported oil products, and the shortage of oil products has even affected national security. He added that China’s successful chemical park model can provide Pakistan’s small and medium-sized enterprises (SMEs) with the necessary resources and facilities, so as to achieve cluster development. Hamza Khalid, vice president PCJCCI, said that Cracker is an important link in the transfer of chemical production to downstream and upstream operations. It is significant to establish a chemical industrial park with facilities such as common effluent treatment plant, a sound supply network of water, electricity, centralized steam generating facility to reduce capital & operating expenditures for chemical manufacturers. With the promulgation of the SME Policy, Pakistani government is taking rational and challenging steps to develop SMEs for their growth.

AIIB approves US$250 m loan after WB’s US$350m to help Pakistan

on 03/01/2024

The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors have approved a loan of $250 million to help Pakistan strengthen its response to the social and economic fallout from the Covid-19 pandemic, said the financial institution in a press release at the end of year 2023.
The AIIB said that the loan is co-financed by the World Bank, adding that this development policy financing will help bolster the government’s Resilient Institutions for Sustainable Economy Program.
The RISE Program is a part of a set of measures Pakistan has undertaken towards recovery from the impact of the pandemic. The program aims to stimulate investment in human capital, expand social safety nets, improve the emergency health infrastructure and foster economic growth.
The investment bank stated that the latest loan brings AIIB total support to Pakistan’s Covid-19 response to $750 million.
The statement mentioned that the health crisis is expected to have far-ranging and long-term repercussions on growth, which may undermine the hard-fought progress the country has made in restoring macroeconomic stability.
The AIIB said that pandemic has taken a toll on employment in the formal and informal sectors, with the poor, women and other vulnerable groups disproportionately affected.
“The pandemic has rapidly evolved in Pakistan and now threatens to undo many of the hard-won gains made in reducing poverty over the past two decades,’ said AIIB Vice President, Investment Operations, Konstantin Limitovskiy.
“Our immediate support is critical and will contribute to the government’s efforts to mitigate pandemic-related shocks, so that the country may continue on its path to sustainable development,” he said.
The AIIB said it does not have a regular instrument for policy-based financing, the Bank is extending such financing on an exceptional basis under its Covid-19 Crisis Recovery Facility to support its members through projects co-financed with the World Bank or the Asian Development Bank.
It merits mentioning that The World Bank had announced in December 2023 that its board of directors had approved the long-awaited $350 million loan ‘2nd Resilient Institutions for Sustainable Economy (RISE-II) Operation’ to Pakistan to support key macroeconomic reforms in energy, taxation and business environment.
As per the announcement of the bank, the financing was aimed to strengthen fiscal management and promote competitiveness for sustained and inclusive economic growth
The operation contributes to better fiscal management by improving fiscal policy coordination, enhancing debt transparency and management, strengthening the taxation of property, and improving the financial viability of the power sector, the bank had said, adding that the financing seeks to foster growth and competitiveness by reducing the cost of tax compliance, improving financial sector transparency, encouraging the use of digital payments, and promoting exports by lowering import tariffs.
The bank believed that Pakistan needed urgent fiscal and structural reforms to restore macroeconomic balance and lay the foundations for sustainable growth.
“RISE-II completes the first phase of tax, energy and business climate reforms geared to raising additional revenues, improve the targeting of expenditures and stimulate competition and investment.”
World Bank’s team leader for the operation Derek H. C. Chen said that based on the foundations laid through RISE II and parallel support by other international financial institutions, Pakistan had the opportunity to tackle long-standing structural distortions in its economy after the upcoming general elections. “Failing to use this opportunity would risk plunging the country back into stop-and-go economic cycle,” he said.
Importantly, the combined $600m program would help Pakistan shore up foreign exchange reserves while taking measures to enhance the policy and institutional framework for improved fiscal management and regulatory conditions that support growth and competitiveness.