KARACHI

The energy-starved Pakistan hassigned a Memorandum of Under-standing (MoU) with the govern-ment of Qatar for import of 500

million cubic feet of Liquefied Natural Gas(LNG) per day.

This was stated by Prime Minister Yusufraza Gilani while inaugurating the rs2.55billion LPG Terminal here on Saturday atPort Qasim. “i am happy to inform you thatduring my recent visit to the brotherly coun-try of Qatar, Pakistan concluded a Memoran-dum of Understanding with the governmentof Qatar for import of 500 million cubic feetof LNG per day,” the prime minister told atthe inaugural ceremony, which was attendedby the federal and provincial ministers alongwith other dignitaries.

To be imported through SSGc-LPG Ter-minal, the imported LNG, PM said, would beprovided to power houses to generate 2,500megawatt of power in the country. Slammingthe previous successive government for theirfailure to give due focus to the energy sector,the prime minister said the key mega proj-ects undertaken by his government to meetthe energy demands include Diamir Bashadam, Thar coal power project, TaPi project,and caSa-1000 in addition to dozens ofsmall and medium-sized dams across thecountry. Pakistan, he said, was also commit-ted to iran-Pakistan gas pipeline project,which would help the country overcome itsenergy problem to a large extent.

“The implementation of these mega proj-ects will not only enhance overall energy sup-plies and provide energy diversity, but willalso lead to a greater energy security,” he said.Despite economic constraints imposed bynatural disasters, energy deficits, global reces-sion and war on terrorism, the fundamentalsof Pakistan’s economy were showing positivesigns, he said. Gilani said, given the size anddiversity of Pakistan’s economy, the country’stotal energy requirements were expected togrow substantially during the next decade.

“it is in this context that achieving self-sufficiency is a key factor to keep the engine

of economy running as well as meeting thefuture demands of the economic growth.”according to the premier, Pakistan wasmeeting 53 per cent of its total energy re-quirements through indigenous oil and gasproduction, whereas, other indigenous re-sources further meet 19 per cent of the coun-try’s energy needs.

The remaining 27 per cent of the energyneeds were currently being met through im-ports, he said.

“The energy imports are likely to increaseas domestic gas production and supplypresently fail to meet the demand of the do-mestic users, the industrial sector and powergeneration,” he said adding due to their all-pervasive use by these sectors, the country’sgas reserves may be insufficient to meet therising demand and will deplete fast. “Such asituation will force the country to resort to im-porting large volumes of gas at internationalprices to feed the domestic market if local pro-duction is not enhanced in relation to de-mand,” PM said.

he said it was well known that escalat-ing energy import bill would put the econ-omy under stress and hamper the country’seconomic revival, the government was aliveto the dramatic changes that had taken placein the price and cost environment of the in-ternational oil and gas industry. The fluctu-ating nature of crude oil prices in theinternational market had posed seriouschallenges to the global economies. “hence,reliance on imports cannot be a feasiblelong-term solution,” said the prime minis-ter. The situation, he said, was calling foradopting a creative approach to respond toemergent energy challenges as well as workout a comprehensive strategy on sustainablebasis. “i am pleased to inform you that thefederal cabinet in the last meeting approvedthe National Petroleum exploration andProduction Policy 2012,” he informed.

Prime minister said the policy recog-nised the operating challenges and key con-siderations facing Pakistan’s oil explorationand development industry.

“it signifies the government’s commit-ment to provide fiscal and regulatory incen-

tives to e&P companies, which will provide animpetus to them to speed up their explorationand development programmes with a view tomaximise domestic oil and gas production inthe coming years,” he added. The core policyobjectives of this policy, the prime ministersaid, were to accelerate exploration and pro-duction activities in country with the purposeto achieve optimum self-sufficiency in energyby increasing oil and gas production, to pro-mote direct foreign investment in the coun-try’s energy sector by increasingcompetitiveness of its terms of investment, toencourage the Pakistani oil and gas compa-nies, to get fully involved in the investment op-portunities and to promote increased e&Pactivity in the onshore frontier areas by pro-viding globally competitive incentives.

“The salient features of this policy are in-digenous production and decreased relianceon imported energy in a phased manner. it isin this background that recourse to LNG andLPG is critical to bridge the gap between de-mand and supply and ease pressure on thelocal production,” he said. Gilani said estab-lishment of the country’s first SSGc-LPG Ter-minal at Bin Qasim would greatly facilitate thehandling of energy imports in the shortestpossible time-frame.

“The gap between demand and supplyhas hampered the socio-economic develop-ment of the country,” he said.

On the occasion, advisor to Prime Min-ister on Petroleum and Natural resourcesDr asim hussain said the country was fac-ing an acute gas shortage that would be metthrough LPG import.

Managing Director SSGc azeem iqbalSiddiqui said his company started this busi-ness in view of the increasing demand forgas in the country.

he said his company had acquiredSSGc-LPG Terminal at a cost of rs2.25 bil-lion and LPG ships would be accommodatedat the terminal with the storage facilitybeing at PQa. Others who attended theevent included Governor Sindh Dr ishrat-ul-ebad Khan, chief Minister Sindh Qaim aliShah and provincial ministers and membersof Sindh assembly. ISMAIL DILAWAR

Sunday, 19 February, 2012profit.com.pk

Asia evades theUS mousetrapPage 03

KARACHI

ISMAIL DILAWAR

Karachi Port Trust (KPT)has gone in litigationagainst the Federal Boardrevenue (FBr) for an

“unjustified” tax deduction of rs8.2billion from the port operator’ssources. also, on Saturday PrimeMinister Yusuf raza Gilani announcedthe long-demanded restoration of son-quota in KPT.“You are requested to direct the FBrnot to tax KPT which is a Trust,”chairman KPT aslam hayat calledupon Prime Minister Yusuf razaGilani while addressing agroundbreaking ceremony here atKPT which is reconstructing itsberths, from 15 to 17 including Shiprepair Berths, at a cost of rs8.3billion with the World Bank funding.KPT, which has been making anoperational profit of rs12 billionduring last the four years, hadchallenged the taxing of the non-profitTrust by the federal tax collector, in acourt of law, said hayat.according to KPT chief, the berthswould be completed in next two years,by 2014, at a cost of rs9 billion andthe spent money would be recoveredwithin a couple years of their

completion as KPT’s annual earningsfor these berths amounted to rs2billion. “KPT, despite all existingodds, attracted a Foreign Directinvestment of over one billiondollars,” the chairman said.in his speech, Prime Minister Gilani,lauding the 125-year-old KPT forproving itself a centre of progress overthe years, announced the restorationof son quota in KPT. The premier alsoannounced a one-month bonus for thecheering KPT employees saying thedaily wagers and others employed onad-hoc basis also be regularised.asking KPT to donate 50 mobile vansto the Sindh government, the primeminister directed that locals bepreferred in employments at thejetties at Baba and Bhit islands. also,PM asked KPT to build a footballground for the people of Keamari. “Letme compliment KPT, PQa and PNScwhich have increased their annualoperational profits to rs18 billion,”Gilani said. Federal Secretary forPorts and Shipping Sarwar razaQazalbash said the 922-meter longand 16-meter deep berths wouldenable KPT to accommodate post-Panamax vessels and that PNSc hadsuccessfully replaced its aging fleetwith the new one, mainly comprisingof double-hull oil tankers.

KPT litigatesFBR for Rs8.2btax deductiong PM announces restoration of son-quota in KPTg KPT employees given one-month bonusg KPT attracted over $1bn FDI in various projects

Pakistan, Qatar clinch deal toimport 500mcfeet LPG daily

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news02Sunday, 19 February, 2012

CORPORATE CORNEREVO customers win exciting prizes in lucky drawISLAMABAD: Pakistan Telecommunication company Limited (PTcL) hasannounced the names of 30 lucky draw winners from amongst its eVOcustomers who have recently re-charged their accounts. The lucky draws are apart of PTcL’s “eVO extravaganza” offer launched last month to benefit thoseof its pre and post paid eVO customers who have revived their subscriptionssince December 2011 or earlier. The lucky winners from across Pakistan havewon exciting prizes, including eVO Tab, eVO Wi-Fi cloud and eVO Nitrodevices. held at PTcL headquarters in islamabad, the first lucky draw wassupervised by an impartial judge committee comprising Managing DirectorTera Data, Mr Khurram rahat; chief coordinator rozan, Ms Shabana arif; andhead of Sales ciScO, Mr Majid Siddiqui. PRESS RELEASE

BOK assets reach Rs68 billionLAHORE: The Bank ofKhyber (BoK) assetsreached rs68 Billion asof 31st December 2011.This was stated by MrBilal Mustafa, ManagingDirector BoK, whileinaugurating BoK annualManager’s conference2012. Mr Bilal Mustafawhile reviewing the

operational results as on 31st December 2011 mentioned that the BoK’s operationalresults shows a tremendous growth in all key areas despite depressed economicsituation. he specially emphasised on home remittances business and mentionedthat during 2011, BoK procured over rs13 billion as home remittances which was 28per cent higher than the corresponding period. PRESS RELEASE

BISP launches Benazir Card in AJKMUZAFFARABAD:

Benazir income supportProgramme (BiSP) has nowintroduced Benazir card inazad Kashmir. Thebeneficiary families wouldnow be able to get theirmonthly cash grant not onlyfrom BiSP delivery centres,but also through aTMmachines by using this

modern facility. While addressing the launch ceremony of Benazir card, Prime MinisteraJK ch abdul Majeed thanked the federal government and chairperson BiSP, MadamFarzana raja for initiating Benazir card scheme in the region on priority basis. PRESS RELEASE

NHA welcomes special envoy to Malaysian PMISLAMABAD: Secretarycommunications Dranwar ahmad Khan whilebriefing Mr Datuk SeriVellu, special envoy ofMalaysian Prime Ministeron india and South asia(infrastructure) said thatMinistry ofcommunication isfollowing an open-ended

policy for convenience of the investors and will provide all incentives to them. The specialenvoy to Malaysian PM is on visit to Pakistan to explore investment opportunities inPakistan. Secretary communications told that a number of Nha projects are available forforeign investment. he offered rehabilitation and modernisation of toll collection systemof M-2, conversion of M-3 into 6 lane motorway, construction of 100 Km 4-LaneKhanewal-Lodhran expressway, construction of 385 Km 4-Lane Lodhran-Sukkurexpressway and rehabilitation and improvement of 350 Km Sukhar-hyderabad highwayto the visiting delegation on Public Private Partnership (PPP) basis. PRESS RELEASE

LAHORE

STAFF REPORT

LahOre chamber ofcommerce and in-dustry (Lcci) Satur-day appreciated thegovernment’s deci-

sion to form a much-neededDrug regulatory authoritysaying the early establish-ment of the authority wouldhelp ensure availability ofquality medicines to the peo-ple at cheaper rates.

While talking to a delega-tion of pharmaceutical indus-try, Lcci President irfanQaiser Sheikh said pharma-

ceutical sector was facing a lotof troubles due to non-func-tioning of the Drug regulatoryauthority. he said the govern-ment decision would not onlysave the businessmen from ahuge loss on account of im-ported raw materials and fin-ished medicines, but wouldalso help check the shortage oflife saving drugs.

Lcci President hopedpharmaceutical industrywould extend every possiblehelp and cooperation to thegovernment for early estab-lishment of Drug regulatoryauthority as it is need of thehour. it is pertinent to men-

tion here that President asifali Zardari on Friday promul-gated an Ordinance to formthe ‘Drug regulatory author-ity’ after all provinces gave itthe mandatory green light. asstated in the Ordinance, thedrug watchdog will consist of14 members, including allprovincial health secretaries,and is tasked with regulatingcountrywide manufacturing,licensing, registration andsale of drugs in line withDrugs act, 1976. headed bythe chief executive officer,Dra will have one technicalrepresentative, each of thefederal government, doctors,

pharmacists and pharmaceu-tical industry.

With headquarters in is-lamabad, it will work underthe administrative control ofthe secretary of the cabinetdivision. Under article 147 ofthe constitution, the centraldrug watchdog can

be established only afterthe provinces’ concurrenceand approval. Sindh,Balochistan and KhyberPakhtunkhwa gave it a greensignal long ago. and Punjabfollowed suit on Wednesdayby getting a resolutionpassed by the provincial as-sembly in its favour.

DRUG REGULATORY AUTHORITY

LCCI APPRECIATESGOVERNMENT DECISION

KARACHI: Pakistan Vanaspati Manufacturers association (PVMa) hasannounced to go on strike by shutting down ghee and cooking oil mills all over thecountry from Saturday onwards, after an unfortunate incident of burning of fourNational Logistic cell tankers carrying consignments of edible oil from Port Qasim.as per details of the incident, the imported consignments of edible oil were clearedfrom Port Qasim and loaded on NLc containers for transportation to the ghee andcooking oil mills. The incident took place despite clear orders of the Sindh highcourt that no party will take lw in its own hands and both NLc and privatetransporters would continue smooth transportation of edible oil from Karachi toother destinations across the country. The incident has also shown helplessness ofthe ghee and cooking oil mills at the hands of transport mafia, which hasdeliberately burnt the oil tankers, causing loss to the concerned industry. Prices ofvegetable ghee and cooking oil are expected to rise after closure of ghee andcooking oil mills across the country. STAFF REPORT

Pak Vanaspati Manufacturers announce strike

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debate

Sunday, 19 February, 2012

03

KunwAR KHuLdunE sHAHId

Washington’s attempts to squeezeiran into submission, via itssanctions, haven’t exactlytranspired the way the US think-

tanks thought they would pan out with asianoil importing heavyweights, Japan and SouthKorea, brushing off the US policy making. andthe word is that india and china might evenup their oil purchases from iran, to furtherforestall the US efforts of forcing iran intoparting ways with its nuclear programme bytargeting its economic nerve center. These fouraforementioned countries combined for 60 percent of iranian oil sales last year, and the US isrelentlessly trying to convince them intoopting out of these imports and in turn giveTehran a $100 billion economic jolt – whichwould surely be the final nail in the coffin ofiranian resistance. all the same, all americanendeavours are being parriedaway, as Washingtonreceives a realitycheck that nationswould rather act insynchrony withtheir nationalneeds than aid the USpolicies that couldhinder their owneconomicgrowth.With the eU inWashington’spocket, the eUembargo –scheduled to kickin July – was alwaysgoing to be aforegoneconclusion, andthis would resultin some losses foriran. But what itwould also do isforce iran intolowering the oilprices for theasianbuyers, andthis wouldbe a tailor-made opportunity for these nations,who would then be able to lowertheir oil purchase expenditure

considerably. The ramifications on the iranianbudget would still be considerable, but itwould be hard to convince the asian countriesto eschew purchasing oil at a considerablycheaper rate.South Korea – evidently the closest of US’sasian allies – is the one targeted by theamerican hierarchy to turn the tide inWashington’s favour. Seoul imports 10per cent of iranian oil, and being anamerican chum historically, it would bethe easiest one to influence into cuttingdown on the imports from iran.Nevertheless, with a complete dearth of similaralternatives for black gold, Seoul is refusing totake the bait for the time being. Japan, again,imports 10 per cent of its crude oil fromiran, and are warding off US approachesciting the insufficiency of oil availability

from other

Middle eastern countries.china, meanwhile, increasingly becoming aclose iranian ally, completely turned its backon the efforts of american Treasury SecretaryTimothy Geithner during a January visit, andlabeled the Western efforts as being

detrimental to global economy. chinaand the US of course have no love lostbetween each other and, averagingabout 550,000 barrels per day in 2011,Beijing imported around 10 per cent ofits oil from iran. and with the oil pricesscheduled to take a nosedive, it’s goingto be a mouth watering prospect for thechinese to further enhance themselves,while the americans continue to pursue

their geopolitical dogfights. it isevident that china wants tobuild a

strategic reserve of crude oil and with iraniansunder the US’s cosh, it has the upper hand onthe negotiation table with Tehran as well.india has recently been upping the ante withregards to oil purchase from iran, raising it ashigh as 550,000 barrels per day in January.and with New Delhi perceiving it as a sterncompetitor for influence in the region – botheconomic and otherwise – it would be hard toimagine the indians letting go of their oilimport from iran – especially again, since it isgoing to be available at cut-price.Furthermore, a lot of indian refineries aredesigned specifically with processing iraniancrude oil in mind, and they would find it

inconvenient toreshape their

dynamics.hence, theindian frontlooks likebeing

continuing to beoblivious to US

objections as well. This leaves the US in averitable fix, sincemerely the eU embargowill not suffice in theproverbial arm twistingthat Washington isvying to sermon. Whatseems like happeningis that with these four

asian giants payingno heed to the USstance over iran,the disparity thatthe eU embargo

might create on theTehran exchequer,

would be covered by thetransfer of those

particular barrelseastwards into asia.

Asia evades the US mousetrapg While Washington ups the ante on Iranian sanctions, Asian giants pay no heed to US objections

REutERs

PaKiSTaN’S rekoDiq, an untappedcopper and goldmine of fabulous

potential, was meant to be thebiggest foreign investment inthe country’s mining sector, butit’s beginning to look more likefool’s gold to the companiesinvolved. Set in one of thebleakest places on earth, aBaluchistan desert at the foot ofan extinct volcano, reko Diqwas expected to yield revenuesof at least $60 billion over the56-year life of the mine.Tethyan copper company(Tcc), a joint venture betweenchile’s antofagasta andcanadian-based Barrick Gold,had sunk $220 million over thepast five years into exploringthe deposit in the ochre sanddesert, where temperaturesreach 130 degrees Fahrenheitin the summer. it was planningto invest a total of $3.3 billionwhen the provincialgovernment abruptly refused togrant a mining license last year.Tcc says it never did get anexplanation. “it’s been difficultto define what their actualissues were,” Tim Livesey, ceO

of Tcc, told reuters in anexclusive interview. “We wentback to them for clarification, asmany of their issues are notcovered in the BaluchistanMining regulations.”a localgovernment official, whorequested anonymity, said Tcctook too long to complete itsfeasibility study and that it was“cheating” Baluchistan byunder-valuing the worth of thecopper and gold. “They are themonopoly,” the official saidangrily. “They are themonopolists of the gold! Theydon’t want to disclose the worthof the gold in Baluchistan.” Thecase is now beforethe Pakistan Supreme court,and Tcc has filed forinternational arbitration. TheBaluchistan government,meanwhile, has recentlyhanded out exploration permitsin the area around reko Diq tonew Pakistani and chinesecompanies with no miningexperience. Pakistan is alreadyviewed as a high riskinvestment due to chronic civiland sectarian conflict,terrorism, corruption, poorregulation and chronic poweroutages. Legal uncertaintywould only add to that list.

Fool’s gold? Pakistan minerift exposes investor risk

The writer is Sub-Editor,

Pakistan Today.He can be

reached atkhulduneshahid@

gmail.com

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