Saturday, 9 November 2013

Experts suggest ways of exploiting Thar coal deposits

184b tons, are the estimated reserves of coal in Sindh. PHOTO: FILE
HYDERABAD: As the vast coal reserves of Thar still appear far from doing wonders, experts at a conference suggested ways of harnessing the resource efficiently while keeping it environment-friendly.
A three-day mega event, during which about 55 papers were being read by international and domestic experts, was organised by Mehran University of Engineering and Technology.
Titled “1st International Coal Conference”, the event started on Thursday at the university’s main campus in Jamshoro. The experts discussed a host of issues like coal mining, coal geology, characterisation and upgrading, emission and control, coal utilisation and clean technology.
An estimated 175 billion tons of coal reserves, spread over an area of 9,100 square kilometres in Thar, await exploitation for electricity and gas production.
“A lack of strategic policy guidelines has resulted in a series of very costly ad hoc decisions in the past 20 years,” said Dr Zahoor A Abbasi, who works with Delta Engineering, California.
He said Thar coal held the key to addressing energy crisis in Pakistan as it cost around $2 per million British thermal units (mmbtu) compared to furnace oil cost of over $20 per mmbtu.
However, Abbasi argued that the Sindh government, despite its good intentions, lacked professional capacity to understand the fundamentals associated with coal projects. “After spending billions of rupees, we are no closer to producing energy from Thar coal today than we were 20 years ago,” he said.
Globally, coal-powered electricity plants were fast replacing other fuels used for the process, said Shah Zulfiqar Hyder of Narayanganj Electric Cooperative, Bangladesh.
“Some 483 power companies have proposed new coal-fired plants in 59 countries, mainly in China and India, besides 20,000 megawatts of proposed power generation from coal in the US,” he said.
Even in Bangladesh, coal was set to replace other fuels as the primary source of electricity generation, he added.
Pakistan has also huge coal deposits with Sindh alone holding estimated reserves of over 184 billion tons in Thar, Badin, Lakhra and Sonda coalfields. The biggest coalfield in Thar has been divided into 12 blocks and development work by foreign and domestic companies is under way in four blocks.
Three companies – Sino Sindh Resources, Sindh Engro Coal Mining Company and Oracle Coalfields – are involved in open cast mining. A gasification project is being run on a pilot basis under the supervision of Dr Samar Mubarakmand. However, none of them will be able to produce electricity or offer coal for commercial sale before 2015-16.
Speaking at the conference, Dr Yoichi Kodera of the National Institute of Advanced Industrial Sciences and Technology, Japan, said coal was a clean way to generate hydrocarbons and hydrogen. He explained three methods for coal gasification including fixed-bed, fluidised-bed and entrained-bed, of which Thar coal was being experimented through the fluidised system due to low-grade lignite content containing high sulphur, moisture and ash.
Kodera said a gasification plant in Japan was producing 250 megawatts with higher generation efficiency and lower environmental impact.
“The coal gasification system is successfully competing with pulverised coal-fired power generation with super critical steam production, cost and environmental impacts,” he said and expressed the hope that the underground coal gasification project in Thar would also become a success story if proper technological methods were applied.

Despite debt clearance, IPPs fail to enhance supply

“Power production could have improved had the government invested Rs100 billion to tackle outages across the country,” a member observed. CREATIVE COMMONS
ISLAMABAD: 
A parliamentary panel on water and power issues has expressed concern over payment of billions of rupees to clear the debt of independent power producers (IPPs), saying they have failed to enhance electricity generation despite getting billions from the government.
This issue came up for discussion in a meeting of the Senate Standing Committee on Water and Power, which met here on Friday with Senator Zahid Khan in the chair.
“Power production could have improved had the government invested Rs100 billion to tackle outages across the country,” a member observed.
The committee members called for addressing the power crisis in all provinces, especially southern Punjab, on a priority basis.
Chairman Zahid Khan pointed out that the government was collecting most of the power bills from consumers in nine districts of Malakand Division but people were facing 18 hours of load-shedding there.
He also expressed his reservations about delay in the transfer of a “corrupt officer” in Multan despite the committee’s orders.
The committee noted that lack of coordination among National Transmission and Dispatch Company (NTDC), National Electric Power Regulatory Authority (Nepra), Ministry of Water and Power and Planning Commission was adding to the woes of consumers.
Owing to the lack of coordination, progress on power projects was being delayed and consumers were paying surcharge on power bills, the committee observed. It blamed the bureaucracy and the departments concerned for being the major reason behind the problems faced by the people.
The bureaucracy was giving false details, creating misconception among provinces, Senator Nisar Khan said.
The committee members also sought details of decisions taken by the board of directors relating to the Neelum Jhelum hydropower project.
Senator Shahi Syed said the old system of Water and Power Development Authority (Wapda) should be restored and the committee should be informed about installation of double meters to stop power theft.
Minister’s absence
Taking notice of continuous absence of Water and Power Minister Khawaja Asif from meetings of the committee, the panel members decided to approach the prime minister to lodge a complaint with him.
“We will write a letter to the prime minister for continuous absence of the water and power minister,” a member said.

Booming business: Retail sector looks to consolidate gains

Pakistan is an emerging market where the size of the retail market is estimated around $42 billion, growing faster than the economy at a rate of 5.3%. PHOTO: FILE
LAHORE: 
Pakistan’s retail sector has embarked on a growth trajectory that can see the industry become a major hub for growing businesses. Though retailers have existed in Pakistan for a long time, the induction of global brands and outlets has really kick-started the sector forcing local retailers to expand their boundaries to compete with their larger international competitors.
With a rise in disposable income, especially in the middle class, this sector is now flourishing even outside of Pakistan’s mega cities. Pakistan is an emerging market where the size of the retail market is estimated around $42 billion, growing faster than the economy at a rate of 5.3%.
This year seven Pakistani brands were nominated for the first time for the World Retail Awards held in Paris last month, in which three brands were shortlisted. Although none of the brands won any award, this event forced local retailers to think globally to take advantage of such forums.
The sector could possibly be a huge job creator, and attracting foreign investment into Pakistan, attracting global brands to the local market. All that is needed is skilled labour, education, training and a retail body to promote the sector and engage the government. And the stakeholders are thinking of exactly that, joining hands to create a platform to address local issues and to present Pakistan at global platforms in future.
Chief Executive Officer of LXY Global, Yousaf Jamshed, is the man at the head of this initiative to streamline the retail sector.
He has successfully organised two World Retail Congress Pakistan in Lahore, attracting international players to the local market.
“The way Pakistan’s retail market is booming is positive, but some local players need some grooming to represent Pakistan at global platform,” Jamshed said while talking to The Express Tribune.
There is a dire need for training of man power, clearing supply chain issues and other related problems. Though global brands arrange trainings regularly, local chains often fail to do this, he added.
Jamshed said that the institutions are very late in responding to his suggestions of starting such courses. He believes that the coming years will see retail businesses which need qualified and experienced manpower, something which Pakistan currently lacks in both upper management and lower management positions.
“Only 10% of local retailers are doing business with a vision. The rest are able to expand their business but their business models are still old and highly centralized. They are still shopkeepers”, he said.
Many local brands are expanding and have started their business globally by adopting global trends.
The retail segment includes small karyana shops, small and medium scale outlets providing which provide various different categories of products under one roof, big shopping malls and hypermarkets.
The main segment within retail sector seems to be the apparels, which saw large gains throughout the country, and is in need of qualified personnel to operate, according to Jamshed.
A retail association is on the cards, which will streamline many things, said Jamshed. For instance, Jamshed says, there is no proper data of total number of retail outlets in Pakistan. Retailers never disclose about their sales due to taxation issues, they avoid proper training and grooming of their staff.
Jamshed believes that a strong retail body will tackle all these issues, force some quality institutions to include courses on this particular sector, local training workshops and things like this will boost the confidence level of locals, which ultimately would result in global presentation of Pakistan retails sector the potential of which can force many more to foreign brands to start business in Pakistan.

Average monthly salary: Part-qualified CIMA students get 15% less pay

More alarming is the fact that only 44% among all Pakistani part-qualified CIMA students are satisfied with their current salary, which is lower than 58% reported in 2012 and 51% in 2011. PHOTO: FILE
KARACHI: The average monthly salary of a part-qualified student of the Chartered Institute of Management Accountants (CIMA) decreased by almost 15% on a year-on-year basis, according to recently released CIMA Salary Survey 2013.
Pakistani professionals who have partially passed the exams of the world’s largest body of management accountants and are currently employed within Pakistan earned on average a monthly salary of Rs63,067 each, which is 14.7% down from Rs73,973 received in the previous year.
More alarming is the fact that only 44% among all Pakistani part-qualified CIMA students are satisfied with their current salary, which is lower than 58% reported in 2012 and 51% in 2011.
According to National Bank of Pakistan Assistant Vice President Tahir Sartaj, who passed CIMA in 2008 and now teaches CIMA students in different tuition centres in Karachi, the drop in compensation for part-qualified CIMA students has nothing to do with the quality of CIMA education.
“New professionals are joining the field because the qualification is getting popular in Pakistan. However, their demand is restricted mainly because of an overall slowdown in the economy. The supply-demand imbalance is resulting in a dip in their compensation level,” Sartaj told The Express Tribune.
CIMA was set up in 1919 in the United Kingdom and its members and part-qualified students are now present in all global economies. In addition to three years of practical experience, a student has to complete five exam levels, which consist of several papers, to become a CIMA member. These are called certificate, operational, management, strategic and professional competence levels.
Approximately 25,000 qualified members and just over 21,000 part-qualified students were invited to participate in the survey. It was conducted in 23 markets, with 96 part-qualified students taking part from Pakistan.
According to CIMA Pakistan representative Javaria Hassan, the drop in satisfaction levels reflects the continuing challenging economic environment as well as the high expectations that younger CIMA students have for their future salaries.
About 94% of CIMA students in Pakistan are expecting a salary increase over the next 12 months at an average rate of 14.5%, the survey revealed. If realised, in real terms this will be above the inflation forecast of 8.2%.
While 44% are anticipating a smaller than average salary increase, 28% expect a raise of 20% or more, the survey noted.
“We have observed a change in the profile of respondents between 2012 and 2013 towards younger age groups starting out in their CIMA qualifications. In 2012, 31% of students were at the operational and management levels of the qualification while 9% had less than one year of relevant work experience. In 2013, however, we observe 41% of students at the operational and management levels and 22% with less than one year of experience,” Hassan told The Express Tribune.
“As salary is strongly linked with experience, we have observed a fall in the overall average salary,” she noted.
In an interview with The Express Tribune in July, CIMA Global Executive Director Dr Noel Tagoe estimated that the Pakistani economy needs as many as 50,000 professional accountants in the short run.
Tagoe said about 600 new students from Pakistan registered for CIMA between January and June this year. He added that CIMA officials expect more than 1,500 new admissions in the current year. In contrast, about 450 new students registered for the CIMA qualification in the first six months of 2012 in the country, he said.
Currently, there are 154 CIMA qualified members and 3,073 part-qualified students registered in Pakistan.

LUMS to assist PSO in HR development

PSO is focusing on strengthening the capabilities of its employees to make the organisation globally competitive. PHOTO: FILE
KARACHI: The Lahore University of Management Sciences (LUMS) will help assess organisational development needs of Pakistan State Oil and devise training courses for employees as part of collaboration between the two organisations, it was announced on Friday.
In this regard, PSO Managing Director Amjad Parvez Janjua signed a memorandum of understanding with LUMS’s Suleman Dawood School of Business at the company’s head office. Dr Zafar Iqbal Qureshi represented LUMS.
“PSO believes in development of its human resources for increased employee productivity and improved company performance. The strategic alliance with LUMS can help achieve human resource and organisational development objectives,” the company said.
Janjua said PSO was focusing on strengthening the capabilities of its employees to make the organisation internationally competitive.
Despite being a state-run organisation, PSO stands
out for continuously training its employees and remains the preferred organisation
for fresh graduates seeking jobs.

Missed target: IMF says $6.7b bailout ‘broadly on track’

Finance Minister Ishaq Dar holds a joint news conference with the IMF mission head Jeffery Franks. PHOTO: APP
ISLAMABAD: 
The International Monetary Fund (IMF) has said that Pakistan’s $6.7 billion loan programme is ‘broadly on track’ on Friday as the country missed its target for building foreign currency reserves.
Amid increasing problems with balancing its external account, Pakistan and the IMF announced the successful conclusion of the first review of the programme. The IMF staff will now submit a report on Pakistan’s progress to the international lender’s board for review in late December.
If approved, the IMF will release the next tranche of $550 million, said the Fund’s Washington-based mission chief for Pakistan, Jeffrey Franks, at a news conference in Islamabad alongside Finance Minister Ishaq Dar.
Following the review, the IMF has also imposed new structural benchmarks on energy and privatisation in addition to overall conditions which were agreed upon earlier but not mandatory to meet.
While Franks said the programme was broadly on track, he said there were difficulties on the balance of payments front and action was needed to build up Pakistan’s foreign currency reserves.
“The net international reserves target could not be met due to lower than expected external flows – including foreign investment and other official assistance – and interventions by the State Bank of Pakistan to ease pressure on the rupee,” reads the IMF handout.
Franks added that the IMF had reached an agreement with the State Bank on policies required to tackle the issue. Reinforcing the programme’s earlier conditions, the lender has asked Islamabad to stem the reserves using options such as exchange rate deprecation and increasing discount rate.
Finance Minister Dar acknowledged the urgency of building up foreign currency reserves, which have been depleting fast in spite of the IMF bailout.
He added that Pakistan missed the quantitative performance criterion on net international reserves because of the delay in the disbursement of the $322 million Coalition Support Fundand the non-realisation of Etisalat receipts worth $800 million.
Dar told reporters that economic growth and revenue collection was better than IMF’s expectations during July-September this year – the period under review. He said the Federal Bureau of Revenue had collected Rs469 billion in taxes, which despite being lower than the government’s target of Rs506 billion, was higher than IMF’s target of Rs436 billion for the period.
Dar said things were on track on the energy front and the government had paid Rs80 billion in subsidies after June.
The minister added that the government was expecting $1.5 billion – including $700 million for Dasu dam – from the World Bank before the end of the current fiscal year.
The IMF handout, meanwhile, stated that although the balance of payments challenge would likely persist for some time, the lender had been assured firm action would be taken to improve foreign exchange reserves.
“The [Pakistani] authorities have reaffirmed their commitment to align monetary and exchange rate policies to this objective, while maintaining price stability,” it read.

Backlash: Fazal’s statement on martyrdom condemned

Hakimullah Mehsud. PHOTO: AFP
LAHORE: 
Pakistan Sunni Tehrik’s Ulema Board urged Maulana Fazalur Rehman on Friday to seek forgiveness for his recent comments on martyrdom. The PST leaders also objected to Fazal and Munawar Hassan calling Hakimullah Mehsud a martyr.
They said Mehsud was responsible for thousands of innocent people’s deaths.They also condemned drone attacks by American forces, saying they were attacks on the sovereignty of Pakistan. The PST urged the prime minister to deny supply lines to NATO forces and to shoot down any drones violating the country’s territory.
‘Militant wings of political parties breed violence’
“Political parties with militant wings should be banned,” Sunni Ittehad Council Chairman Syed Mahfooz Shah Mashhadi said on Friday.
Mashhadi told a press conference that the government should support the law enforcement agencies for peace in the country.
He said the law and order situation in Karachi was deteriorating.
He said there should be no compromises on the safety and security of the citizens.
He blamed militant wings of political parties for the escalating violence in Karachi.
Mashhadi said the government must deal with militant wings with an iron hand.
“The government will win the support of the entire nation if it can rescue Karachi from the militant mafia,” he said.