Thar coal reserves a sustainable solution to Pakistan’s energy crisis Pakistan has been grappling with a severe energy crisis for years, relying heavily on expensive imported fossil fuels. This dependence has strained the economy and hindered competitiveness. However, beneath the expansive Thar Desert lies a potential solution – Thar coal. Thar coal is one of the world’s largest untapped coal reserves, estimated at over 175 billion tonnes of lignite coal. This vast resource could transform Pakistan’s energy landscape, offering a sustainable and cost-effective power generation solution. Spread across vast expanses, Thar coal primarily comprises lignite, a lower-rank coal abundant in…
Author: Muhammad Rehan-Muhammad Farhan-Dr. Ponum
The increasing energy prices and poor planning in energy sector have put the public in real pressure. During the previous ruling regime, excessive power generation plants have been started that is almost 1.5 times of peak season demand and 2.5 times of off-peak demand of electricity. As these new plants are getting complete and coming in the commercial operation, the government will have to pay them capacity payment irrespective of the utilization. That is pushing extra pressure on the public in shape of increase in electricity prices. This electricity price hike will continue for at least next ten years till…
Poverty is one of the concerns of the governments of almost all countries. There is a constant research on the policy by organizations around the world to identify the means to achieve a decline in poverty. The poverty is defined as widespread scarcity, or the condition of one who lacks a certain amount of material possessions or money. That is, they have little or no material means of surviving; little or no food, security, clothes, shelter, education, healthcare facilities and other physical means of living and improving one’s life. As per the latest estimates, 24% of Pakistan’s population live below…
Many long-term energy agreements have been signed in the last five years that has increased the generation capacity to almost double the country’s energy demand. Most of the plants are now idle and getting the capacity payments. This situation is putting the additional burden on the end consumers. That’s why we are facing a continuous increase in energy tariff. This is all happening due to lack of planning. It is required to increase the energy generation based on consumption forecast on a continuous basis rather than installing 20,000 MW in three years and then keep the plants idle for ten…
Pakistan is a developing market for automobiles and its allied industry. The automobile industry plays a vital role in economic growth having enormous investment opportunities. The automobile industry in Pakistan includes companies manufacturing passenger cars, buses, trucks, pickups, vans, trucks, rickshaws and motorcycles, etc. The creativity of Pakistani designers is marvelous that they designed the passenger motorcycle rickshaw commonly named the Chingchi that has eliminated the conventional Tanga (light carriage or curricle drawn by two horses). Now the motorcycle loader rickshaw is taking over the workload of the small pickups and donkey carts. The need of the time is to…
Pakistan has been blessed with great potential of hydel energy. According to the report by Water and Power Development Authority (WAPDA) in November 2011, Pakistan has the potential of 100,000MW of hydro power with identified sites of 59,000MW. Pakistan has been blessed with ample water resources, but could store only 13% of the annual flow of its rivers. The storage is fast depleting due to sedimentation. Pakistan is a water rich country, but, unfortunately, Pakistan’s energy market investment in hydel power generation has been caught up in confusion and contradiction for many years, and no significance project has been achieved…
The balance of trade is the difference between the monetary value of the country’s export and import over a certain period. If a country exports a greater value than its imports, it has a trade surplus, and conversely, if a country imports a greater value than its exports, it has a trade deficit or trade gap. In simple words, the trade deficit is the amount of a country’s import exceeds the value of its exports. The following are some factors that can affect the balance of trade: The cost and availability of raw materials, intermediate goods and other inputs. The…
The consumer financing was started in Pakistan during the General Pervez Musharaf regime and was at its peak in 2004-05 when inflation was in single digit and the banking sector was flourishing. The banking sector was searching the customers to invest their money. During the tenure of the last government (2008-13), the increase in inflation drastically reduced the consumers buying power. The inflation is once again in single digit for last three years due to reductions in international crude prices. The low inflation results in low interest rate, which is resulting in a boom in consumer financing. The country’s banking…
The Karachi Stock Exchange (KSE) was founded on 18th September 1947 as country’s first stock exchange. Initially only five companies were registered in the exchange. The Lahore Stock Exchange (LSE) came into existence in October 1970 while the Islamabad Stock Exchange (ISE) was registered as a guarantee limited company on 25th October 1989. On 11th January 2016, all three stock exchanges were merged as Pakistan Stock Exchange (PSX). The Pakistan Stock Exchange provides a reliable, orderly, liquid and efficient digitized marketplace where investors can buy and sell registered companies’ common stocks and other securities. For over 60 years, the Exchange…
The electricity and gas prices for manufacturing businesses and households have increased sharply in recent months and indications are that prices will continue to increase. It’s a great reason to worry that in Pakistan with the existence of cheaper sources of energy; the government prefers costly energy choices. The government predominantly focused on the plants dependent on the imported fuel, i.e. imported RLNG (Regasified Liquefied Natural Gas). The statements of government officials look more like political slogans and nothing are passed to the customers yet. The government policies are not consistent, one day; one department announced a project and the…
The more than US$60 billion loan from the People’s Republic of China in the China-Pakistan Economic Corridor (CPEC), is set to change the face of Pakistan’s economy. The CPEC initiative is beneficiary for the economy of both the countries. The China will get the quick access to the Arabian Sea and Middle East markets and in return Pakistan will get support from the upcoming superpower China at all international forums. The CPEC initiative is good if it will be executed in true letter and spirit. There are many advantages of this initiative, but on the other hand, there will be…
The energy prices have started to increase again. The increase in the global crude price will increase fuel price in Pakistan. In addition to this, it will also increase the price of imported LNG. The price of imported LNG is linked to the price of crude. It’s a great cause of concern that in Pakistan with presence of cheaper sources of energy, we are using expensive energy options. The government is primarily focused on the plants dependent on the imported fuel, i.e. imported LNG and imported Coal. Pakistan is full of potential of alternate renewable energy resources, i.e. solar, wind,…
The present government is talking much for the energy crisis. Their statements look more like political slogans and nothing are passed to the customers yet. Despite of many announcements, the public is still facing the electricity load shedding problem. The government policies are not consistent, one day; one department announced a project and the next day the other denied to support. The present energy situation is very confusing; the government has signed the long term Power Purchase Agreements of approximately 5,000MW & 4,000MW on imported LNG and Coal respectively. Similarly, the longer term agreements are in process for approximately 1,500MW…