. .

Opportunities and options

Fertilizer is the backbone of agriculture and Pakistan needs to add 2.5 million tonnes production capacity in next ten years to maintain self-sufficiency in indigenous production of urea. This can be achieved through debottlenecking of the existing plants and adding three new plants of 600 tonnes/annum each. The level of investment is envisaged around US$ 2.5 billion, at least. The factors governing the fresh investment are feedstock price, tariff on plant and machinery and level of corporate tax to determine an attractive level of ROE.

Pakistan has the lowest number of B2B users and the lowest e-commerce development rating in the region. The things, however, are about to improve with the initiation of e-commerce action plan. Like elsewhere the financial sector will serve as the springboard to usher e-commerce revolution and the banking system is chosen as the catalyst as it is the most ready part.

As a result of deregulation of furnace oil, Pakistan State Oil (PSO) has reduced the furnace oil prices by 14 per cent. Following the footsteps Caltex Pakistan and Shell Pakistan also slashed down the fuel oil prices. KESC, WAPDA, Hubco and other IPPs which are the biggest consumer of furnace oil, their cost of power generation will also reduce. The ultimate result should be the reduction in electricity charges.

Against the good economic policies and strong desire of the government to promote textile production and exports, the industry feels that black sheep in bureaucracy are out to sabotage the productivity of some good economic decisions.

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