Apr 05 - Apr 11, 2004  
ISSUE # 14  

The GoP has constituted a 12-member committee to submit a plan for attracting fresh investment and suggest the remedies to resolve the problems facing the fertilizer sector. The reasons for the failure of the Fertilizer Policy are known to all and sundry. Fresh investment is dependent on the future price of feedstock. However, it is beyond comprehension why the GoP is not ready to guarantee the price for new plants?



Pakistan has tremendous potentials worth 40,000MW of hydel power generation. However, so far a scratch of that potential i.e. 6500MW has been developed which is concentrated in NWFP, Punjab, Northern Areas and Azad Kashmir. Despite having potential, the contribution by Sindh and Balolchistan in hydel power generation stands nil. This indicates lack of interest on the part of the provincial governments of Sindh and Balochistan. Hopefully, with the arrival of private sector investment in hydro power generation the pace of development in this significant area would be accelerated in the days to come.


Getting rid of the high cost and poor quality services of the public sector utility companies like WAPDA and KESC, the bulk power consumers in the private sector are setting up their own captive plants. So far, about 400Megawatt of power is being generated by the industrial units in their captive plants while there are applications for setting up more plants for producing over 350MW in Karachi alone. The government under a policy has allowed gas connections for power generation to those units which are exporting 70 percent of their products. Under this critarion, most of the textile units are relying on self power generation which is cheaper as compared to the cost charged by the utility companies.