Pakistan Environmental Review

Definition and scale of sector

Technologies

Sector

Environmental products, Environmental services (utilities) and specialist consultancies, Energy production technologies

Why the sector was chosen in the West Midlands

Significant economic growth potential worldwide led by global concerns over climate change, Diminishing resources and waste management. Diversification opportunity related to skills available within region and technology transfer from existing sectors. Identified by recent DTI work as a regional cluster

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Agriculture Sector Overview from IPTU Alternate Energy - A report from IAR - October 2007 Alternative Energy Overview from IPTU Alternative Energy I - A report from IAR - January 2007 Alternative Energy II - A report from IAR - February 2007 Bio technology Overview from IPTU Bottled Water Plant - A report from IAR - January 2007 Coal Based Power Project III - A Report from IAR - September 2007 Coal Based Power Project IV - A Report from IAR - September 2007 Drinking Water - A report from IAR - December 2006 Energy Conservation In Cement Industry - A report from IAR - October 2006 Iron And Steel Industry - A report from IAR - March 2006 Oil and Gas sector from UK Trade & Investment - May 2006 Oil & Gas sector review from British High Commission - December 2006 Paper & Board Industry I - A report from IAR - February 2006 Paper & Board Industry II (Paper Cone Manufacturing) - A report from IAR February 2006

Paper & Board Industry III - A report from IAR - March 2006 Power Sector Overview from IPTU Power Sector - A Report from UKTI - September 2007

Agriculture Sector Overview

Agriculture is the mainstay of Pakistan Economy. Nearly twenty-two percent of total output (GDP) and 44.8 percent of total employment generation depends on the performance of this sector. It also contributes substantially to Pakistan exports and act as source of raw material to a number of industries such as Textiles, Sugar etc. Government of Pakistans corporate farming policy offers excellent incentives for investment. Some of these incentives are: up to 60% foreign equity, a minimum of US$ 0.3 million foreign investment, remittance of capital, profits and dividends, no ceiling on land holding, no custom duty on import of agriculture machinery, equipment and implants etc. This is a sector that offers substantial opportunities for investment and growth, be it animal husbandry, poultry farming, fish farming or crop production. Source: India Pakistan Trade Unit

Alternate Energy - October 2007

Petroleum import bill incresaed from $6.67 billion, 2005-06, to as high as $7.73 billion in fiscal year 2006-07, grew 10 percent over the period under review. The import of oil products increased by 29.59 percent to $3.73 billion during the said period as against $2.88 billion in the same period last year. The import bill of crude oil has declined by about five percent to $3.60 billion as against $3.79 billion during the period under review. Source: IAR ( Industrial advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Alternative Energy Overview

Pakistan, like other developing countries of the region, is facing a serious challenge of energy deficit. Renewable Energy (RE) resources can play an important role in bridging

this deficit. More importantly, RE can take electricity to remote rural areas, where it is needed the most. Realizing the importance of RE and to utilize the natural resources such as wind and shining sun, the Government of Pakistan has established an Alternative Energy Development Board (AEDB) The main objective of the Board is to facilitate, promote and encourage development of Renewable Energy in Pakistan with a mission to introduce Alternative/Renewable Energy at an accelerated rate to achieve 10% share of RE in the energy mix of the country. The current initiative is directed towards creating a market-based environment that is conducive to private sector investment and participation. One of the mandates of the Board is also to play a pivotal role in establishing international linkages and engaging in the transfer of the state of the art know how on renewable energy technologies to local research institutions and industries in Pakistan. Source: India Pakistan Trade Unit

Alternative Energy I - January 2007

The import bill of petroleum increased 21.83 percent during the July-December period of fiscal year 2006 to $3.711 billion as against $3.046 billion in the corresponding period last year. The share of oil in the total import bill reached 25 percent as against 22 percent during the same period last year. It indicates that the share of oil import is still on the top despite a decline in oil prices in the international market. The import of petroleum products increased 58.96 percent to $1.882 billion as against $1.184 billion. However, growth in import of crude oil declined by 1.75 percent to $1.828 billion as against $1.862 billion in the same months last year. Therefore, like last year, oil import bill was the main head of the trade deficit this year because of its greater consumption. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Alternative Energy II - February 2007

All renewable energy-based power projects will enjoy the following fiscal and financial incentives. These facilities shall be equally applicable to private, public-private, and public sector renewable energy power projects.

Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Bio technology Overview

Development of Bio Technology Sector is high in the agenda of the Government of Pakistan.

We are working closely with UNIDO to prepare a National Bio Technology Policy and action plan. This policy will be aim at facilitating and arranging the creation of important databases of scientific manpower, research institutes and projects in the country, strengthening and expanding education, training and research facilities in the field of Biotechnology, encouraging research in the agriculture, health and environment sectors and most importantly strengthening government-private sector collaboration in the development and production of biotechnology products in agricultural and health sectors. To facilitate the process, the government has set up a National Biotechnology Commission. Source: India Pakisatn Trade Unit

Bottled Water Plant - January 2007

For providing clean drinking water to the masses the Ministry of Industries Production and Special Initiatives has set January 20, 2007 as a deadline for all the local governments, Punjab, Sindh, NWFP. FATA, AJK and Northern Areas, and the related department like Project Directorate Clean Drinking Water Initiative (CDWI) and the concerned water companies to make all the drinking water plants operational, installed under CDWI. The deadline was announced with consultation of Secretaries, Local Governments, Secretary Public Health Engineering Balochistan, Chairman PCRWR, Additional Secretary to Governor, FATA and MDs and representatives of WASA of Lahore, Multan, Karachi, Hyderabad, Rawalpindi and Faisalabad. Punjab government indicated that almost all the installed plants have been made functional except 15, which will be made functional till the January 20, 2007 deadline. Sindh Government informed that out of 35 nonfunctional plants 15 have been made functional and the remaining 20 will be made operational before the deadline. The Local Government, NWFP also showed some progress on making the plants functional. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Coal Based Power Project III - September 2007

The coal deposits in Pakistan was known before independence, but its economic value was highlighted in 1980, when large reserves of coal were discovered in the Lakhra and

Sonda, Tharparkar District of Sindh Province. These reserves spread over an area of 10,000 sq km. This discovery has provided a quantum increase in the coal resources of Pakistan and made the country having the 7th largest coal reserve among the top 20

countries in the world. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Coal Based Power Project IV - September 2007

The prices of coal in the world market are determined by the demand of importing countries. The figures indicate the demand of coal of some of the countries, including Pakistan, IAR # 71. India which used to import 10 million ton of coal for cement and power has crossed 32 million ton and its demand is expected to grow to 45 to 50 million ton in coming years. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Drinking Water - December 2006

Water is a blessing and all the human being dreadfully need safe and fresh water. According to ADB, approximately 20 percent of Asians do not have easy access to water while almost 60 river basins in Asia have been identified as potential flash points for inter-state conflict. Water availability in Pakistan continues to decrease, both in total amount of water as well as in the per capita water availability. In 1951, when population stood at 34 million, per capita availability of water was 5,300 cubic meters, which has now decreased to 1,105 cubic meters, just touching water scarcity level of 1,000 cubic meters. With present growth in population and the low rainfalls, the upper limit of water scarcity i.e. 1,000 m3 of water per capita per year may be reached as early as the year 2010. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Energy Conservation In Cement Industry - October 2006

The conservation of energy is an essential step that takes towards overcoming the mounting problems of the worldwide energy crisis and environmental degradation. In particular, developing countries are interested to increase their awareness on the inefficient power generation and energy usage in their countries. The cement industry consumes much energy. The cement industry is also noted for great percentage of the energy cost in the total production cost. In the cement industry, appreciable amounts of energy could be saved or conserved by preventing of leakage in the kilns, modifying the equipment to recover heat from the preheater and cooler in the process of cement-making and effective use of industrial waste materials. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Iron And Steel Industry - March 2006

At the time of partition neither any steel works nor any defence-oriented industry existed in the areas falling within the geographical boundaries of Pakistan whereas India had full-fledged steel mills operating before partition. However, the progress is quite satisfactory and the number of steel units in the organized sector has increased from nil to over 500. Pakistans economy has shown robust growth of 8.4 percent in 2005 compared to 6.4 percent during the last year, supported by an impressive growth in manufacturing sector. The high growth of GDP has triggered staggering growth in various sectors of the economy particularly bringing a surge in steel demand. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Oil and Gas sector - May 2006

The government offers lucrative incentives to the investors in the Oil & Gas (O&G) sector, which is evident from the fact that out of 26, twenty-two are foreign petroleum companies operating in Pakistan including 6 from the UK. The current Petroleum Policy allows 100% foreign equity and no restriction on repatriation of capital, profit and dividends. All applications for exploration licences are decided within 60 days.

The sector attracts by far the highest level of foreign direct investment in the country and raises significant revenue for the government. In 2004-5 Oil & Gas and Petro-Refining sector attracted total FDI worth US$217.5m. The governments long-term goal is to create a competitive efficiently run, financially viable and largely privatised O&G sector.

Source: UK Trade and Investment FOR THE FULL REPORT PLEASE CLICK HERE

Oil & Gas sector review - December 2006

Oil and gas is one of Pakistan's major focuses for attracting inward investment and raising revenue. The breakdown of energy resources is:

Natural gas: 52% Oil: 28% Coal: 7% Hydro Electricity: 12% Nuclear: 1%

It currently imports 85% of its energy needs, including over $4 billion of oil a year. The energy demand over the next five years is expected to grow at a rate of 7.4% per annun (Source: Ministry of Petroleum and Natural Resources). Source: British High Commission FOR THE FULL REPORT PLEASE CLICK HERE

Paper & Board Industry I - February 2006

Pakistan had no paper and paper board manufacturing unit at the time of independence and the entire needs were met through imports. First paper unit was established in 1956, with a 500 tons per annum production capacity. With this humble beginning, more units were then set up in Punjab, NWFP and Sindh, producing various grades of paper, using local and imported raw materials. However, due to ill planned growth in the 80s and 90s, many of the units are lying closed since that time. At present, there are about 100 units in the organized and unorganized sectors, having a cumulative installed capacity of 650 thousand tons per annum. The units in organized

sector have a capacity of 20 to 300 tons per day. The organized sector comprises of 26 paper-manufacturing units with 575 thousand tons production capacity. These units produce Writing and Printing Paper, Wrapping and Packing Paper, White duplex coated, Un-coated board, Chip Board and other board. Source: IAR (Industrial Advisory Reports)

FOR THE FULL REPORT PLEASE CLICK HERE

Paper & Board Industry II Manufacturing) - February 2006

(Paper

Cone

There are thousands of printing presses using paper of different types. But they are facing numerous problems due to high rate of taxes and duties. For instance, the printer and publishers pay various taxes include corporation tax, old age benefit tax, social security tax, labor tax and GST. These multiple taxes hindering the growth of the industry not only printing and publishing but also paper industry. The common man is also directly hit because the prices of books, notebooks increased by 30 to 35 percent. The price of copies that were being sold for Rs. 5 to 20 rose from Rs. 10 to 30, which directly deprived the middle class of standard books. There are more than 20,000 printers enrolled at DCO, Office Press Branch. There are thousands of hundreds publishers, designer, composer, bookbinder, paper cutter, diemaker and die-cutter who are affected with the slum in paper industry. Millions of people are attached with this sector that helps to reduce unemployment in the country. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Paper & Board Industry III - March 2006

Corrugated packages provide efficient and convenience for marketing of the product. When compared with wooden crates, corrugated boxes are light to carry and are preferred by airfreight companies. They are recyclable unlike non-recyclable packaging that has to be burnt at the end of its life.

It is expected that due to high economic growth of manufacturing sector there would be an increase in the demand for packaging facilities as well. There are vast potential for investment in packaging industry. Source: IAR (Industrial Advisory Reports) FOR THE FULL REPORT PLEASE CLICK HERE

Power Sector Overview

The demand/supply projections that indicated that power shortages would start appearing the country from the year 2005-06 have proven right. With the growth in the manufacturing sector and increasing the electrification to smaller villages, these shortages are expected to increase to 5,500 MW in the year 2010. Government of Pakistans Policy for Power Generation Projects, 2002, provides a clear set of incentives, along with a regulatory regime, that effectively provides a roadmap to attract the much-needed investment in power generation at competitive prices. This has enabled Pakistan to attract about US$ 4 billion worth of investment in the power sector in the past ten years. Due to the dynamic economic policies of the Government of Pakistan, the trade and industry has a vast potential for growth, making electricity a much needed commodity for the future creating a unique opportunity for potential investors in the sector. We encourage participation of the private sector to help in setting up power plants to bridge in the projected gap foreseen in the demand and supply of electricity. Source: India Pakistan Trade Unit

Power Sector - A Report from UKTI - September 2007

Pakistans economy has doubled during the last five years with an average growth rate of 7%. Over the next five years, The Government of Pakistan (G.o.P.) envisages 6-7 percent growth per annum. This growth has led to rising energy demands, particularly for electricity, which is growing at 8-9% p.a. Nationally, peak electricity demand is currently 15,500MW against a guaranteed supply of 15,000MW. According to the GoP, by 2010 the gap between power demand and supply is expected to grow to 5,500MW in a zero capacity addition scenario. Electricity Generation is one of the key sectors on the government agenda as the country is facing power shortages, especially during the summer due to the extensive use of airconditioners, chillers and other electric appliances. As a result there are frequent power breakdowns and loadshedding throughout the country. On average, the household sector

has been the largest consumer of electricity, accounting for 44.3 percent of total electricity consumption, followed by the industrial sector with 29.1 percent. Source: UK Trade and Investment FOR THE FULL REPORT PLEASE CLICK HERE