Production falls: Energy import critical for Pakistan’s economy, says ADB

The ADB said that with continued demand growth, it will be ncreasingly difficult for Pakistan to meet its demand with domestic sources. DESIGN: TALHA AHMED KHAN

ISLAMABAD: 

For achieving even a low growth rate of 3.4% over the next two decades, securing foreign energy supplies will be critical for Pakistan amid a volatile security situation in Afghanistan, as the country’s domestic supplies gradually dry up, according to an Asian Development Bank (ADB) study.

In its Energy Outlook for Asia and Pacific report, the Manila-based lending agency has urged Pakistani authorities to double its efforts for addressing energy sector bottlenecks that have hit economic growth, resulting in increasing unemployment in the country.

The ADB released its findings the day when Prime Minister Nawaz Sharif described his strategy on energy as “energy emergency”. The premier approved on Monday immediate start of work on two coal-fired power plants at Gadani and Port Qasim.

The ADB said Pakistan is faced with domestic supply shortages of coal, oil, and natural gas, as well as shortage of hydroelectric generation capacities. These fuel constraints have severely affected the power sector, leading to a significant decline in power production.

“At its peak, the gap between electricity demand and supply was as high as 40%,” according to the ADB report. Until 2035, Pakistan’s annual economic growth would be rather moderate at 3.4% unless infrastructure development is sufficient to facilitate economic activity, it added.

It said in the same period, energy demand is projected to grow 2.2% annually. However, if the country applies some energy saving methodologies it could restrict the growth to 1.8% per annum. Natural gas will still meet the largest share, reaching 43.8% by 2035, followed by oil at about a fourth.

The ADB said that with continued demand growth, it will be increasingly difficult for Pakistan to meet its demand with domestic sources. The country is not only facing domestic energy supply constraints but also problems of outdated and obsolete supply infrastructure.

It said securing energy supply sources of natural gas, oil, hydro and coal will be critical for economic growth. It projected that domestic production of natural gas will decline from the current 38.4 billion cubic metres (bcm) to 13 bcm in 2035 and the country will have to start importing natural gas sometime after 2015.

Pakistan is already working on the Iran-Pakistan gas pipeline project, which is facing delays due to US sanctions against Iran and inability of Pakistani authorities to arrange funds for construction of its side of the pipeline.

Petroleum and Natural Resources Minister Shahid Khaqan Abbasi recently stated that Islamabad had requested Tehran to provide finances for constructing the pipeline.

The country is also pursuing the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline aimed at importing 90 million cubic metres of natural gas. Inter State Gas Systems signed gas sales and purchase agreements with Turkmenistan in May 2012.

However, the ADB struck a note of caution saying some care needs to be taken so that the TAPI pipeline does not collide with the planned trans-boundary pipeline from Iran to Pakistan. It warned that political situation in Afghanistan may also affect progress on the TAPI project.

The lending agency reiterated that the country’s power sector was badly affected by circular debt, as its Central Power Purchasing Agency often remains short of funds to meet its obligations towards power suppliers.

It added the issue of technical and non-technical (theft) transmission and distribution losses also remained a major obstacle.

Analysts have also questioned the PML-N government’s strategy to address the power sector’s problems by only increasing electricity tariffs. They have called for a three-tier strategy comprising reducing theft, improving recovery and gradual increase in power tariffs.

Sajjad Ali’s sons follow in his footsteps with SK Champs

KARACHI: When you think of timeless Pakistani musical talent, the name Sajjad Ali comes to mind. The maestro who started his career in the late ‘70s has had miraculous comebacks whenever there is a vacuum in the local music scene. From heartwarming soundtracks for TV serials and a spectacular version of Kir Kir at Coke Studio to a soothing ghazal Har Zulm, Ali has a voice that stands out.

His teenage sons, Shabi and Khubi are all set to follow the footsteps of their father and have launched their own band, SK Champs with their first song, We Are The Guys.

Heavily influenced by ‘80s pop, the band tends to blend a lot of music forms together like pop, rock and rap.

“This is Shabi. Music is what I’m all about. I write, compose and produce my own stuff since I was eight and I make music for fun! Tekken, Tomb Raider and the ’80s music pretty much sums up my life!” posted Shabi on his Facebook Page.

The band and Sajjad Ali could not be contacted for a quote. Here’s to hoping that these kids do justice to the golden legacy that their father has left behind. Fingers crossed!

KPK’s Governance: Tsunami Or Drizzle?

With Pakistan Tehreek-i-Insaf holding the centre stage in KPK’s power politics, its probability to lead the next provincial government had resulted in mixed sentiments among experts.

The Pakistan Tehreek-e- Insaf (PTI) passed through a lot of alterations within its ranks, as the 90-day target set by the party to bring ‘change’ in Khyber-Pakhtunkhwa (K-P) has ended long ago. Observably and PTI & all PTI supporters have complained a lot when things didn’t go their way and this goes for polls, bi elections, anchor persons who do not agree with IK, weather etc etc. Even after months in government, PTI government has not shown much focus and seriousness to provide relief to the people of KPK. In an unbiased approach there have been numerous incidents that have indicated that direction of PTI government is totally wrong i.e. government has no focus, vision and plan in any of the key sectors. Their competitors can clearly sense weakness of PTI government. It is totally unfocused, confused and disoriented. Then there has been no change in head of departments, secretaries, directors of many of the government departments. Commission and nepotism continues as result of PTI in-action. Moreover no independent audit of government departments, no action against corruption and mismanagement has been witnessed so far.

Talking about Imran Khan’s claims and principles they are being clearly violated. ‘Dual Office Performance’ (expression used by an anonymous blogger) Imran Khan’s stance on dual leadership and party’s constitution in KPK is being violated, while Imran Khan is trying to defend KPK leadership, contrary to stated position, Pervaiz Khattak had to shift to a wing of CM house, KPK CM, Mr. Pervaiz Khattak used helicopter to reach walima reception in Abbottabad (abolishment of protocol? Not to be seen). Lastly KPK government has nominated large number of advisors with same pay/privileges as ministers. Moreover among 35-member PTI provincial parliamentary party, there are a handful of members, who have governance experience. They included Pervez Khattak as the party’s parliamentary leader in the provincial assembly elect, who has served as the provincial minister more than once.

IK vowed that an ideal government would be formed within few days but even its economic plans are disappointing. They were full of clichés and wishes, and quite similar to plans of the PPP, the PML-N and the regime of General (retd) Pervez Musharraf. The heroic claims on employment, growth, reform of state-owned enterprises (SOEs), investment, circular debt and deficit reductions, exports, appeared to have been drafted by someone who does not have a good grasp of basic economic issues. The proposed plans were flawed, timid and not credible. Its key instructions have been tried before for two decades, with not much than little success. There is absolutely no credible ‘how to’ on raising taxes, improving expenditure management, reducing fiscal deficits, increasing exports or resolving the energy (and the imminent water) crisis. The fantastic-sounding assumptions about raising investment ratios are without any basis, and proposals to tap mineral resources ignore the ground reality and the reduction of foreign direct investment in this sector. We have recently witnessed the tragedy ofPeshawar blast atleast ANP ministers used to go to the funerals of the bomblasts victims but PTI hasn’t given a single thought to it. Furthermore ANP had numerous ministers’s sacrifices i.e. Bashir Balor son of Iftikhar Ahmed.

The PTI’s proposed plans will not change the status quo and it would not be wrong to say that they are more of a ‘mist’ and less of the ‘tsunami’ that the party kept talking about. Claims about doing better than others are not credible at all because they have no basis in reality. Deluxe and gleaming power point presentations are not alternate for real reforms. For the PTI to deliver on its promise of change, it will have to be bolder in its reform program and abandon obsolete ‘tried and failed’ solutions

perez: Madrid could move for Falcao next summer

The Blancos supremo has ruled out a January bid for the Colombia international but says he knows that the forward would be interested in playing at the Santiago Bernabeu

Real Madrid president Florentino Perez has admitted that the club could make a move to sign Radamel Falcao at the end of the season.

The Colombia international only joined Monaco from Atletico Madrid at the start of the summer, committing himself to the Ligue 1 outfit until 2018.

However, while Perez has dismissed rumours of a January bid for Falcao, he is in no doubt that the 27-year-old striker, who was strongly linked with los Blancos before moving to the Stade Louis II, would jump at the chance to play in the Spanish capital again.

"He will not come in January but, in June, who knows? Nothing is impossible, and even then there is a lot [of time left]," the Madrid supremo told Punto Pelota.

"Falcao is a great player and I know he would want to play in Madrid. I know that but this is quite normal."

Falcao is currently the top scorer in Ligue 1, having netted seven times in his first six outings

Jovetic: I never wanted Juventus move

The attacker says that while there were talks with the Bianconeri, he had his heart set on leaving Fiorentina for a side overseas

Manchester City forward Stevan Jovetic has refuted claims that he wanted to move to Juventus during the transfer window.

The Montenegro international, 23, was heavily linked with a move to the Serie A champions during the summer, but eventually left Fiorentina for the Etihad instead.

Jovetic has admitted that talks took place with the Bianconeri, but he has stressed that he was not seeking a move to Turin.

"I never said I wanted Juventus," Jovetic was quoted as saying by Tuttosport. "It is true that there was a negotiation. But I chose to go abroad."

Jovetic then went on to back his former team to claim a Champions League spot this season, despite an indifferent start that has seen them drop nine points in the league.

"I am continuing to follow Fiorentina. I have many friends in Florence," he explained.

"They have been a bit unlucky at the start of the season, but even though it will be tough, I think they can still reach the Champions League.

Xavi: Neymar is not a diver

The experienced midfielder does not think the Brazilian is guilty of simulation and believes he is not indispensable for Barca

Barcelona playmaker Xavi has defended team-mate Neymar against recent criticism that he goes to the ground too easily and engages in play-acting.

The Brazil international has been criticised for his alleged tendency to exaggerate tackles and injuries, but Xavi feels says his Blaugrana team-mate does not deserve the harsh treatment he's been receiving since his summer switch from Santos.

"All the focus is on Neymar, but he is not play-acting or diving," Xavi told RAC1. "These accusations happen because we have a lot of rivals. 

"The people in Madrid are looking for things they don't like and then try to put a certain label on a player.

"Neymar has the skills to be a big star, if he's not one already at this stage. We're lucky to have him."

The midfielder, 33, then went on to discuss his future at Barcelona and added that the Catalans will continue to do well without him once he hangs up his boots.

"Barcelona will keep on winning and playing well without me. Nobody is indispensable," the World Cup winner said.

"Barca should not be looking for a direct replacement for me as that would only put extra pressure on the guy taking my place."

Xavi has a contract with Barcelona for two more seasons after the 2013-14 campaign.

Bayern were ready to sell Boateng, says Scholl

The former Germany international has claimed that the Bundesliga giants considered offloading the defender during the summer

Former Bayern Munich II coach Mehmet Scholl has revealed that the Bundesliga champions were ready to sell Jerome Boateng in the summer transfer window following his relatively disappointing performances in 2012-13.

The 25-year-old defender struggled to find his best form last term, but has developed into a key player under new head coach Pep Guardiola this season.

"They held a conversation with Boateng to tell him that he would not be at Bayern much longer if he continued to play like he played last season," Scholl told ARD.

"He has made a big transformation since and you can hardly recognise him any more. When players show a willingness to change and to improve, that shows their class."

Boateng joined Bayern from Manchester City in the summer of 2011 and has since made nearly 100 official appearances for the German champions.