Power solutions: Industry presses for 50% energy production from coal

If the government presses for production of low sulphur diesel by local oil refineries for power generation, the oil import bill can be reduced up to 30-40% in the next few years. PHOTO: FILE

FAISALABAD: 

Faisalabad Chamber of Commerce and Industry (FCCI) President Engineer Suhail Bin Rashid on Saturday said the government should produce 50% of energy from coal.

In a statement, he also called for producing 15% of energy from biofuel over the next four years.

“LNG import project should also commence soon,” he suggested and said it would help ease energy crisis in the country.

Speaking about the Iran-Pakistan gas pipeline, Rashid termed it imperative and urged the government to complete work on the project on an emergency basis.

“We have vast potential to construct large dams in the country and running water can also be utilised for power generation,” he said.

Precious water resources were being wasted into sea without their utilisation, which can be used for inexpensive power generation, he remarked.

“If the government presses for production of low sulphur diesel by local oil refineries for power generation, then the oil import bill can be reduced up to 30-40% in the next few years.”

He proposed passage of legislation to bring tax-exempt sectors into the tax net and unnecessary powers of tax officials should be withdrawn to facilitate the taxpayers. Tax rate should also be minimised.

“The government should reduce non-development expenditures and stop taking loans from banks,” he suggested.

He called for promoting exports among members of the South Asian Association for Regional Cooperation (Saarc), Organisation of Islamic Cooperation, Asean and D-8 countries, including non-traditional markets.

Speaking about the agriculture sector, he said it held immense importance in the country’s economy and high technology should be adopted to maximise farm production which could also boost exports

Oil and gas: Provinces push for joint ownership of resources

Chief Minister Sindh Qaim Ali Shah remarked that many leases for oil and gas exploration sites are pending due to confusion over the issue. PHOTO: FILE

KARACHI: 

Parliamentarians belonging to all four provinces, while expressing dismay over the delay by the federal government in implementing the 18th Amendment, have demanded that a mechanism should be developed for “joint ownership rights” over natural gas and oil for the provinces.

Addressing a conference on “Joint Operationalisation of Oil and Gas Resources – Issues and Solution” held here on Saturday, Federal Petroleum Minister Shahid Khaqan Abbasi assured the participants that the federal government would implement the 18th Amendment in letter and spirit, but added that Punjab had suffered losses following the promulgation of 18th Amendment.

“Many industries and factories have stopped operating because of the energy crisis seemingly because the extra share of oil and gas of Punjab have been diverted to other provinces after the landmark legislation (18th Amendment),” he said.

PSM privatisation

After the conference, Abbasi, while speaking to the media, invited the Sindh government to buy Pakistan Steel Mills (PSM). “PSM is on the privatisation list again. The plan to privatise the mill was originally devised in 1998, which was later dropped. PPP leaders and ministers in the Sindh government are criticising us. I have no objection if they buy it,” he said.

The PSM has suffered losses of more than Rs100 billion in the last 10 years and the government cannot sustain further losses, he added.

Responding to the offer, Sindh Chief Minister Syed Qaim Ali Shah refused to buy the mill, saying it was Centre’s responsibility to run the mill in a smooth way.

The petroleum minister questioned why the Sindh government has failed to generate power from Thar coal. “We have been hearing over the years that the province would soon generate electricity from coal. It has not yet been done. At least, the government should give concrete reasons.”

For their part, the lawmakers blamed the federal government for not implementing the 18th Amendment. “If the then government had recognised the rights of our Bengali brothers and given provincial autonomy to East Pakistan, we would have not lost it,” said Senator Hasil Bizenjo, who belongs to the ruling National Party of Balochistan.

Although the conference, organised by the United Nations Development Programme (UNDP) and Dawood University of Engineering and Technology, was supposed to be attended by all four chief ministers, only Sindh CM Syed Qaim Ali Shah turned up.

Shah, while referring to the 18th Amendment, quoted Article 172 (3) and said, “we have serious reservations as to why the 18th Amendment is not being implemented. Seventy-two per cent of gas and 60% of crude oil is produced from Sindh. The federal government is plundering our natural resources by not giving Sindh its due share,” he said.

The chief minister remarked that many leases for oil and gas exploration sites are pending due to confusion over the issue. “We ask the federal government, especially the prime minister, to expedite the process and accept joint ownership rights over natural resources,” he added.

Senator Afrasiab Khattak of the Awami National Party asked the Centre why it has delayed joint ownership rights for the provincial governments.

“It looks like Islamabad is not willing to devolve powers. The federal government should re-consider its decision,” he suggested.

Khattak said there was an agreement between the Water and Power Development Authority (Wapda) and the Khyber-Pakhtunkhwa government on disbursement of net hydel profits under which the province was supposed to get Rs6 billion every year. But this only continued from 1991 to 1993.

Coal mines: Australia gives environmental nod to $5.7b coal project

“The project has been approved subject to 49 strict conditions to avoid, mitigate and manage impacts to matters of national environmental significance, including water resources,” the government said. PHOTO: FILE

SYDNEY: 

Waratah Coal, on Saturday, welcomed the Australian government’s approval of its $6.4 billion ($5.7 billion) Galilee coal project, as conservationists warned the decision threatened the environment.

The proposed coal mine, rail and infrastructure development in Queensland received approval for its environmental impact statement on Friday.

“The project has been approved subject to 49 strict conditions to avoid, mitigate and manage impacts to matters of national environmental significance, including water resources,” the government said.

Brisbane-based Waratah Coal, which is owned by one of Australia’s richest men and new federal politician Clive Palmer, plans to build a thermal coal mine in the Galilee Basin coal region.

The mine will be linked to a proposed coal terminal at Abbot Point and will create thousands of jobs

GSP Plus to help offset past losses

Exports: $1b is the value of additional goods Pakistan will export to European markets post GSP Plus Status. DESIGN: TALHA KHAN

FAISALABAD: 

Parliamentary Secretary for Finance and Economic Affairs Rana Muhammad Afzal, during his visit to the Pakistan Textile Exporters Association (PTEA) office on Saturday, said the GSP Plus status would prove to be of immense worth for the textile manufacturers and exporters.

“Pakistan will now have duty-free access to 27 European countries,” he said, adding it would now enjoy a level playing field with regional competitors.

He said the government was committed to making all-out efforts to exploit the duty-free market access granted by the European Union.

He was of the view that the GSP Plus status had given a ray of hope to the country, which could offset the losses Pakistan had suffered in the past. Pakistan has been provided with a golden opportunity to improve its economic conditions by effectively utilising the duty-free facility, he suggested.

Speaking about the government’s role in the economic development agenda, he said easy and greater access to European markets was its top-most priority, which had been achieved after strenuous efforts.

“Approval of the GSP Plus status will enable Pakistan to export an additional $1 billion worth of products to the European markets,” Afzal said, adding the textile industry would earn yearly profits worth billions of rupees.

He said the increase in exports will not only support economic growth but will also generate employment opportunities.

He assured the businessmen of efforts for immediate payment of pending refund claims of textile exporters as they were facing a financial crunch owing to this problem.

PTEA Chairman Sheikh Ilyas Mahmood, while terming the GSP Plus status a milestone, highlighted the difficulties faced by the industry, in which lack of finance was a major hurdle to reaping the benefits of the GSP Plus.

“Textile exporters are stuck in the local tax, sales tax and federal excise duty refund regimes, which are creating a severe financial crunch,” he said, adding if these amounts are released, exporters could deploy the capital for expanding their business, which in turn will increase the country’s export earnings.

Hiring policy: Govt eases eligibility criteria for Planning Commission

Analysts say less experienced people may undermine PC’s strength. CREATIVE COMMONS

ISLAMABAD: 

The government has relaxed the eligibility criteria for hiring members of the Planning Commission (PC), the senior-most post in the Management Position (MP-I) scale which, according to analysts, will further undermine the strength of the country’s apex planning body.

The federal government, through an amendment to the Cabinet Secretariat Resolution of April 2006, has eased the experience criterion from 25 years in a distinguished professional career to just 15 years, according to officials of the Ministry of Planning, Development and Reforms.

The change was approved by Prime Minister Nawaz Sharif while clearing a summary sent to him for the reorganisation and restructuring of the Planning Commission and the Ministry of Planning, Development and Reforms.

The PC is the apex policymaking body entrusted with the task of making annual plans and vision for the country. It is running against time and trying to prepare the Vision 2025 document by the December 31 deadline.

It is not for the first time that questions have been raised over the hiring process in the PC and the Ministry of Planning. Earlier, the planning ministry hired 40 young candidates in clear violation of laid down procedures.

In place of the Cabinet Secretariat’s resolution of 2006, a new resolution was issued in October 2013 which coincided with the process of hiring eight new members of the PC. The members will be hired at MP-I, the highest scale for technocrats involved in public policymaking, on a par with federal secretary of grade-22.

An MP-I scale official is entitled to a maximum monthly salary package of Rs578,110, including Rs142,000 house rent, Rs95,910 car allowance and Rs16,200 utility charges, according to the Ministry of Finance.

Interviews for the posts of members will be conducted next week. The government wants to hire member implementation and monitoring, member private sector development, member energy, member information, communication technology and science and technology, member development communications, member infrastructure and regional connectivity, member social sector and devolution and member governance, innovation and reforms. Members are responsible for making policies and plans in their respective areas.

According to the 2006 resolution, “the members will be professionals of eminent stature, preferably PhDs and with at least 25 years’ experience in relevant field.”

But after the amendment, the resolution says a member should have a Masters degree, preferably a PhD in the relevant field and with minimum 15 years of experience including five to ten years of managerial experience at policymaking level.

The 15-year experience requirement shows that the government wants to accommodate its own people who are less experienced, said Dr Asad Ali Shah, former member PC and a senior fellow at Global Think Tank Network.

He said the purpose of keeping the experience requirement of 25 years was to appoint members of international repute who have written research papers and are intellectually sound.

By lowering the experience to 15 years, the government actually wants to hire people who are comparatively weak so that they could be pressured when required, Shah added.

A member with 15 years of experience around 40 years of age would not easily challenge a federal secretary in his late 50s with 30-plus years of experience, according to analysts.

Analysts and economic experts said the move was meant to bring people of choice, which will compromise quality in an institution that is already weak due to appointments of the District Management Group officers at key posts.

When contacted, PC officials defended the decision of lowering the experience requirement. The experience condition was relaxed to accommodate comparatively young people, said a senior official.

He said there was no legal hurdle to relaxing the eligibility criteria and stressed that all posts will be filled strictly on merit and in a transparent manner.

US-Iran renewed ‘friendship’: What’s in store for Pakistan?

US President Obama and Iran President Rouhani. Photo: AFP

On November 24, six major powers agreed with Iran on a landmark interim accord over Iran’s nuclear program. Tehran has committed to halt uranium enrichment beyond five per cent in return for some relief from sanctions, signalling the beginning of reconciliation with the major powers that would make the world safer.

Some reports suggest that the P5+1, a group of six world powers including US, Russia, China, UK, France and Germany, dialogue was merely a show. It was the Obama administration’s secret diplomacy that succeeded. This shows the willingness of Washington to resolve the long-standing dispute through diplomacy.

The interim deal, for six months, has benefited both sides. Iran has got the much-needed economic relief to address the socio-economic conditions of the masses and the US is tired of military involvement. Thus, it has prevented dragging itself into another war.

Ending the decade-old stand-off is the first major step towards the beginning of a relationship between the two countries, which has facilitated the opening of ambassadorial contacts. The temporary agreement, in some ways, is an interim chance to bridge the trust deficit and increase cooperation on common interests such as eradicating terrorism and bringing stability in Afghanistan. The scale of the task of promoting partnership and reducing mistrust is colossal.

Silencing hardliners in both countries will almost be impossible.

They will try their best to derail the upcoming permanent agreement, blaming each other of retracting the interim accord. Most probably, the hawks in the Congress will get some support from the US’s most important ally, Israel. And Hezbollah will warn Iran of serious consequences of engaging with the West, especially America. But taking tough decisions and enduring high pressures by the Obama administration and the Rouhani government are the need of the hour.

Tehran has a few friends in the Middle East and does not face any kind of external pressure. Washington, on the other hand, has many friends that are trying to obstruct the formation of the renewed relationship between the two old nemeses. Israel and Saudi Arabia, two key allies of the US, are unhappy at the accord. Israel has called the agreement a ‘historic mistake’, declaring that the US has got nothing in return for giving everything and the Saudis are sceptical of Iran’s intentions. The fact is, these are minor differences that will not impact the US relations with its allies. The common objective they all share is, preventing Iran from getting nuclear weapons.

Once Washington and Tehran successfully manage to reach the final accord and the normalisation of this relationship occurs, it may lead to various important developments. These will help the US in pursuing its national interests and bringing stability in the Middle Eastern and South Asian regions.

The US, for example, can play a pivotal role in reducing the hostility among Iran and its adversaries in the Middle East. Ending of the cold wars will put a stop to the proxy wars in the region, thereby paving the way for the creation of a peaceful and tolerant Arab world. With the help of Iran, the US can also resolve the Syrian crisis.

In my opinion, Iran will also be able to assist the US in stabilising Afghanistan. Tehran and Washington may disagree on a number of international issues, but they both see the Taliban as a common enemy and eradicate the menace of militancy in the South Asia region, both the countries should put aside their differences. In this regard, intelligence sharing and joint counter-terrorism efforts, although a bit premature to predict, can help them in defeating the adversary.

US-Iran rapprochement is also a golden opportunity for our Pakistani leaders to improve trade and economic relations. And, perhaps, the Iran-Pakistan gas pipeline can finally be pursued without any fear of sanctions from the US. This will help end the lingering energy crisis in our country. Most recently, both countries have agreed to accelerate the work on the project.

With this cooperation between Pakistan and Iran, Washington may also view this is an opening to convince the countries to help with the stabilisation process of Afghanistan. With an end to the proxy wars, this would seem like a viable outcome.

On a side note, Pakistan will have to rethink its own relationship with the US. NATO supply routes, normally used a tool by Pakistan to convince the US on certain terms may no longer be a feasible option. With the Iranian port of Chabahar, the US may have found the best alternative to the supply routes going through Pakistan. This transit route, although more expensive, may rid the US of any trouble it may have experienced with Pakistani transit routes and can in turn be detrimental to Pakistan, as a large chunk of funding that comes through with the NATO deal will then be stopped.

The other aspect, that in my opinion Pakistan must be wary of is the prospect of an Iran-US-India-Afghanistan alliance that can pursue its specific agenda in the region, costing Pakistan’s economic and geo-strategic goals dearly.

The Pakistan-Iran relationship has already witnessed sign of strain, whether by coincidence or on purpose would be a different topic altogether. The recent firing of rockets by Iranian forces into the Pakistani territory evidences this tension.

What this renewed ‘friendship’ has in store for Pakistan, only time can tell. The only thing we can say for sure at the moment is, Pakistan has to revisit its foreign policies with respect to both these countries and re-establish itself as an indispensible player in the South Asian Region.

Perhaps it is time we look at extending our hand of ‘friendship’ to certain countries as well.

Zenit join Juve & Inter in race for Kolarov

The Russian outfit contacted the agents of the Serbian, with the full-back, who earns £90,000 a week, open to a move away from the Etihad Stadium

By Paul Clennam

Zenit St Petersburg are the latest club to check on the availability of Manchester City left-back Aleksandar Kolarov.

The Russian outfit contacted the agents of the Serbia international earlier this week, having recently seen the defender linked to both Inter and Juventus.

Kolarov, 28, will have 12 months remaining on his existing deal next summer and boss Manuel Pellegrini has already made it clear that he will be going nowhere in the January transfer window.

Zenit are willing to match Kolarov's current €107,000-a-week wages and pay a fee in the region of €8.4 million to land the former Lazio left-back.

The player wants to see if City will offer him a new deal before the season is out and recently said that he would be interested in a move back to Italy.

Serie A champions Juventus have distanced themselves from a deal for Kolarov, however, with general director Giuseppe Marotta confirming that the club have no intention to initiate negotiations for the 28-year-old.

Kolarov has had to play second-fiddle to Gael Clichy during the majority of his City career, with the Serb starting just 11 Premier League games during Roberto Mancini's ill-fated final season in charge last term.

He has enjoyed something of a renaissance under Pellegrini, however, making 19 appearances in all competitions for the Chilean coach this season, including the full 90 minutes of Saturday's 4-2 win over Fulham