In a remarkable development, since 2001, almost half
of the country's demand for petroleum products is now met through local
This is a sharp improvement from 2000 when local
production of POL products was able to met only 34 per cent of the
country's demand. The increased domestic production of POL products
reflects the commissioning of the 4.5 million tonnes Pak-Arab Refinery
As refining capacity of the country increased,
imports of petroleum products declined 8.9 per cent to 9.2 million
tonnes last year generating gross savings of $424 million. Low domestic
demand and increased domestic production allowed exports to rise by
194.2 thousand tonnes to approximately 600 million tonnes. The export
increase is more than total exports of petroleum products two years ago.
These gains are expected to further consolidate with the commissioning
of two more refineries i.e. Bosicar and Pak Iran Refinery in 2003 and
The petroleum sector has however witnessed
significant changes during the last few years. Despite a marked increase
in the availability of petroleum and petroleum products, except the
power generating sector, the consumption of oil has actually declined in
almost all major economic sectors. Whether the economic managers buy the
idea or not major reasons for decline in consumption is exorbitant price
of POL products leading to increase in cost of production.
The current installed power generating capacity of
the country is estimated at 18 Giga Watt. The increase in the installed
capacity of the country during the last two years was brought about by
the addition of Chashma Nuclear Power Plant of 325 MW, Chashma Hydro
power project of 184 MW and Liberty Power 235 MW.
The addition in nuclear and hydel capacity is
encouraging, as this would bring some financial relief to WAPDA and KESC
through a fall in the overall cost of electricity generation. The
increase in installed capacity last year was accompanied by a 7.8 per
cent rise in electricity generation compared to a 3.7 per cent increase
in the previous year. As expected, the rise has come from a surge in
electricity generation by all the three sources. With the arrival of
Gazi Brotha Hydropower projects with an installed capacity of 1,450 MW
comes into commercial production this year, hydel generation is expected
to witness a substantial increase.
Despite a sluggish global economic environment and
which would help in developing huge data base for achieving desired
improvement in tax collection system of country. "We will hire
services of industries specialists in cement, sugar and textile related
sectors to get first hand information of major industry of the
country", he added.
He said that the CBR wanted to utilise all gathered
information upto maximum level and expertise of everyone would be
applied in every tax to serve the country. He said that it was
established fact that wherever in the world run exploration companies,
total recoverable gas reserves have been estimated to reach 27 trillion
cubic feet in the country.
Discoveries by Oil and Gas Development Company (OGDC)
and Pakistan Petroleum Limited (PPL) recently have raised the reserves
from about 21 trillion cubic feet.
Pakistan's untapped gas reserves were over 200
trillion cubic feet. Of the recoverable reserves, the country is
producing about 2 billion cubic feet of gas per day. This amount of gas
consumption is however falling short for meeting the ever-increasing
demand especially after conversion of power generation and transport
sectors from oil to gas fired system. In order to meet the demand the
gas marketing companies including SSGC and SNGPL have to added another
billion cubic feet per day in their distribution system which has
already been approved by the ministry of petroleum. The enhanced
consumption of natural gas is aimed at reducing the huge oil import bill
costing about $3 billion a year to the national economy.
The three gas fields Zamzama, Bhit and Sawan would
cumulatively add considerable reserves to country's overall gas
production and the operators of these fields are currently engaged in
developing the fields for production. These newly developed gas field
when brought in production line would increase the gas supply to about 3
billion cubic feet. However, the government is encouraging exploration
and granting more concession areas to companies to ensure that the
production does fall short of demand in the coming days when the gas
consumption will at its peak after done away with the use of oil in
various sectors of the economy.
The government has a target to enhance the production
of natural gas to the level of 3.4 billion cubic feet a day.
The gas distribution companies are also raising
capacity to deliver the additional gas to the consumers. Accordingly,
SNGPL and SSGC both are investing up to Rs20 billion to improve the
infrastructure to cater to the need of additional demand of gas in the
Hopefully, the additional gas will not only cut the
oil import bill but it would also allow the power sector to switch over
to gas run plants especially the Independent Power Plants (IPPs) which
are producing costly thermal power in the country.