Assignment No. 2
Q.1. Explain the National Agriculture Research system of Pakistan.
National Agricultural Research Centre (NARC), Islamabad established in 1984, is the largest research center of the Pakistan Agricultural Research Council (PARC). NARC, with a total land area of approximately 1400 acres, is located near RawalLake, six kilometers south-east of Islamabad. Physical facilities in term of experimental fields, laboratories, green houses, gene bank, library/ documentation, auditorium, machinery & lab equipment repair workshops, stores, hostels, cafeteria, audio visual studios, are also available at NARC.
NARC coordinated programs serve as a common platform for the scientists working in different federal, provincial agricultural research, and academic institutions to jointly plan their research activities, avoiding unnecessary duplication of research efforts. Research which can best be addressed at a national Centre rather than by provincial institutions is undertaken at NARC. The adaptation of technologies available from the international research system is also managed by NARC, in collaboration with the provincial research and extension institutions. In particular, research requiring sophisticated instruments like electron microscopes, ultracentrifuges, and elaborate analytical and quality testing facilities is undertaken at NARC, supported by highly qualified and trained manpower.
The National Agricultural Research System (NARS) consists of several national research centers, provincial research institutions, Centers of Excellence at the Universities. Research in these R & D organizations comprises (i) basic knowledge-drawn research to targeted basic research, (ii) applied research and (iii) development of products and processes. Due to lack of purposeful and coherent efforts and somewhat loose and weak S & T Management Practices, the Research System has gradually deteriorated and the overall research efforts have resulted in the inadequate utilization of vast resources of the country. Low progress in the increase of per-unit productivity presents a major challenge to intensify efforts towards attaining greater production efficiency. To grow and maintain national economic strength and
International Competitiveness, we have to transform. NARS into a knowledge-based enterprise. The R & D organizations and agencies involved in Agricultural
Research should tightly focus on essential programs.
Every department should have a clearly defined mission, considering national priorities .It is also proposed that “Compendiums of S & T Management Practices” must be prepared for each R & D organization, in order to restructure, revamp and reform the NARS. Five Universities, 40 Federal and 66 Provincial R &D Organizations, huge infrastructure in the form of Extension Departments in all four Provinces, are all developing their own empires and have no well-defined functional linkages. Linkages between the Provincial Research & Extension wing do exist officially, but are not effective. Three Agricultural Universities and one
Veterinary University and Apex Research body PARC have got no proper linkages for Research & Development. There is sufficient capacity, in terms of buildings and experimental facilities. Quite often, wasteful duplications of resources are observed at several institutes/organizations working under different control. On the two sides of the road, research facilities have been established under same agency, essentially to undertake identical activities. Just one kilometer from these new research organizations, the comparatively older research organization is crippled due to non-availability of resources. Agricultural research is the concurrent responsibility of both the federal and provincial governments; agricultural education is controlled by the provinces; however it is receiving some technical and financial support from the newly established Higher Education Commission (HEC). HEC, however, has no direct linkages with the agriculture research. Research Institutes established by an agency in the Campus of Karachi University has got no linkages with the University. The most determined effort to link research and education was undertaken in the case of the USAID-supported project in North West Frontier Province of Pakistan, where
Agriculture Research System was merged with Agricultural University (Kamal Sheikh, 2001). This failed to perform, due to mismanagement and exclusion of agriculture extension. All three pillars of Agriculture Development, such as Research, Education and Extension, should be brought under one umbrella, both at Federal and Provincial set-up. Efforts are thus needed to institutionalize research, extension and education linkages at National, Provincial and District levels. Pakistan had not inherited any major research organization in Agriculture-sector at the time of independence in the year 1947. Immediately after independence, a Food and Agriculture Conference was held in Lahore in the month of October 1947. Subsequently, an Expert Committee was constituted to organize Agricultural Research. Food and Agriculture Committee (FAC) was formed under the Ministry of Food and Agriculture, which lead to the establishment of Food and Agricultural Council of Pakistan (FACP) in 1951. First Agricultural University of the country was established at Faisalabad in the year 1961. Agricultural Research Council (ARC) was restructured in the year 1964, and its functional capacity was enhanced with help of USAID, and in 1981, ARC was renamed as Pakistan Agriculture Research Council (PARC). Agriculture Research Division (ARD) was created at PARC, to provide more administrative and financial powers to the PARC. However, this good decision was reversed in 1993, giving an administrative setback to PARC. In the year 1984, Agricultural Research System of North-West Frontier Province was reorganized under USAID’s Transformation and Integration of the Provincial Agricultural Network (TIPAN) Project. NARS was designed on the priorities, which are no more relevant to meet the needs of 2010. It is a well-established fact that NARS of Pakistan requires overhauling and rationalization. According to Quigley (1939), rationalization is a method of dealing with problems and processes in an established sequence of steps, thus: (1) isolate the problem; (2) separate it into its most obvious stages or areas; (3) enumerate the factors which determine the outcome desired in each stage or area; (4) vary the factors in a conscious, systematic, and (if possible) quantitative way, to maximize the outcome desired in the stage or area concerned; and (5) reassemble the stages or areas and check to see if the whole problem or process has been acceptably improved in the desired direction. On the basis of this concept, the 4 proposals in the following paragraphs have been constructed to improve the NARS. We have to introduce a more knowledge-based Agricultural Research System. Therefore the development of human resource should be given first priority. Hundred percent increase in PhD scientists, provision of career-growth opportunities and creation of elite force of strong research managers is needed. Role of PARC as an apex body should be clearly defined and strengthened. The Chairman PARC should be given full power of Federal Secretary. PARC headquarter should act as Federal Ministry of Agricultural Research, Education and Extension. Prime Minister’s High Power Committee on S &T: Recommendations of subcommittees on Food and Agriculture, Edible Oil and Cotton require serious consideration and Implementation. FAO Office at Islamabad, on the request of Government of Pakistan, prepared a report, which propose an “Agenda for Action” for senior Federal and Provincial policy-makers and research mangers that must be addressed if Pakistan is to rebuild its agricultural technology-generation system, and be competitive in WTO regime. Finally, Management skill in the R&D Organizations is very weak. Several institutes are having no focused or coherent program with a clear mission. It is therefore essential that each and every R&D organization should have a clearly defined mission, considering national priorities. It is also proposed that “Compendiums of S & T Management Practices” must be prepared for each R & D organization to restructure, revamp and reform the NARS.
Q.2 Explain the following; –
i. Major groups of soil found in Pakistan
Soil is defined as that part of the unconsolidated material covering the surface of the earth which supports plant growth. It has three major constituents: solid particles (salts, minerals and organic matter), air and water. The type of soil formed is a function of topography, climate, vegetation, and the parent rocks from which the soil material is derived. Soil material transported and deposited by running water is termed alluvium, while that transported and deposited by winds forms aeolian soil. Soils formed in situ are termed residual.
Soil texture varies with the size of the soil particles. Coarse textured soils are sandy, fine textured soils are clayey, and a mixture of sand and clay is called loam. The organic content of the soil also varies, being largely dependent of the extent and type of the vegetative cover. Soils of high organic content are darker in colour, and have more nutrients for plant growth than those of low organic content. Since most of Pakistan is arid or semi-arid, the soils contain little organic matter.
Soil-forming processes are complex and continuous. As a result, soils vary in their chemical composition, colour, texture, and organic content from place to place, even within small areas. The ensuing discussion describes only the major soil-groupings of Pakistan.
Soils of Pakistan:
Indus Basin Soils:
The Indus Basin comprises a vast area of alluvial plains deposited by the Indus and its tributaries, and a small area of loess plains. Most of the material is sub-recent or recent in origin, calcareous, and low in organic content. The soils cab en divided into three major categories: Bangar Soils (old alluvium); Khaddar Soils (new alluvium); and Indus Delta Soils.
Bangar Soils cover a vast area in the Indus Plain, including most of the Punjab, Pewahwar, Mardan, Bannu and Kachhi plains, and the greater part of the Sind Plain. These soils are deep, calcareous, of medium to fine texture, low in organic matter, but very productive when irrigated and fertilized. In some ill-drained areas, these soils have become waterlogged, and capillary action has carried salts to the surface. Some areas show a puffy salt layer at the surface, but these can be reclaimed by simple leaching, if supplied with plenty of irrigation water. Over very small areas, strongly alkaline soil of patches have developed, and these, being non-porous are difficult to reclaim.
In the Upper Chaj and Rechna Doabs, the submontane area bordering the Peshawar-Mardan Plain, and in the eastern Potwar, the Bangar soils have developed under sub-humid conditions. Because of the higher rainfall, they have been leached of lime and are non-calcareous, medium to fine textured, and have a slightly higher organic content. These soils are also fertile when supplied with plenty of water and manure.
Khaddar soils are formed from recent and present-day deposits along the rivers. Part of these soils are flooded each year, adding depositional layers of silt loam and silty clay loam. The organic content of these soils is low, but they are usually free of salts.
Indus Delta Soils are formed of sub-recent alluvium and estuarine deposits. They cover the entire area of the Indus Delta from south of Hyderabad to the coat. Clayey soils, developed under flood water conditions, cover about one-third of the area. With irrigation, these soils are used for rice cultivation. Saline loamy soils cover most of the delta. Some with salt crust at the surface, have been reclaimed by simple leaching and better drainage. Extremely saline patches can be used only for poor grazing.Coastal estuarine deposits form the lower part of the Delta, which is a maze of tidal flats, basins, and sea-water creeks. The soils are extremely saline and barren, except for a weedy vegetation.
Mountain soils occur in the highland areas of the north and west, and are residual as well as transported. Along the steep crests and slopes, and in the broken hill country, shallow residual soils have developed. Under arid and semi-arid conditions, these soils are usually strongly calcareous, with low organic content. Further north, under sub-humid conditions, there is more leaching, and a higher organic content.
In the mountain valleys, soils are formed from the alluvial infill of the streams. These soils are calcareous silt loams and sandy loams of low organic content. They are cultivated in patches only. In the sub-montane area of the Potwar Plateau, shallow residual soils and silty eroded loess have been formed. In places these soils are massive, susceptible to erosion, and strongly gullied, producing a dissected landscape. Lime content is high, and organic content low, but, with plenty of water, these soils are relatively productive. In the lowest parts of the inter-montane valleys and interior basins of the arid and semi-arid regions, strongly saline soils develop. Excess of evaporation over precipitation leaves a thick crust of salts at the surface of the intermittent lakes. For the most part, these soils are barren. The margins carry low shrubs and salt bush, used for poor grazing.
Sandy Desert Soils
The soils extend over some parts of western Baluchistan, and the Cholistan and Thar Deserts. Thal desert soils occur in large sections of the Sind Sagar Doab. Desert soils include rolling to hilly sandy soils, and clayey flood plain soils. Where the soils are formed of deep sand, as in much of Baluchistan, they are moderately calcareous, and largely aeolian. In places, the windblown material is mixed with old alluvium. The arid and semi-arid desert sand areas have few possibilities for improvement, beyond very poor grazing.
ii. Indus water treaty
Indus Waters Treaty, treaty, signed on September 19, 1960, between India and Pakistan and brokered by the World Bank. The treaty fixed and delimited the rights and obligations of both countries concerning the use of the waters of the Indus River system.
The Indus River rises in the southwestern Tibet Autonomous Region of China and flows through the disputed Kashmir region and then into Pakistan to drain into the Arabian Sea. It is joined by numerous tributaries, notably those of the eastern Punjab Plain—the Jhelum, Chenab, Ravi, Beas, and Sutlej rivers. The Indus River system has been used for irrigation since time immemorial. Modern irrigation engineering work began about 1850. During the period of British rule in India, large canal systems were constructed, and old canal systems and inundation channels were revived and modernized. However, in 1947 British India was partitioned, resulting in the creation of an independent India and West Pakistan (later called Pakistan). The water system was thus bifurcated, with the headworks in India and the canals running through Pakistan. After the expiration of the short-term Standstill Agreement of 1947, on April 1, 1948, India began withholding water from canals that flowed into Pakistan. The Inter-Dominion Accord of May 4, 1948, required India to provide water to the Pakistani parts of the basin in return for annual payments. This too was intended as a stopgap measure, with further talks to take place in hopes of reaching a permanent solution.
Negotiations soon came to a standstill, however, with neither side willing to compromise. In 1951 David Lilienthal, former head of both the Tennessee Valley Authority and the U.S. Atomic Energy Commission, visited the region for the purpose of researching articles that he was to write for Collier’s magazine. He suggested that India and Pakistan should work toward an agreement to jointly develop and administer the Indus River system, possibly with advice and financing from the World Bank. Eugene Black, who was then the president of the World Bank, agreed. At his suggestion, engineers from each country formed a working group, with engineers from the World Bank offering advice. Political considerations, however, prevented even these technical discussions from arriving at an agreement. In 1954 the World Bank submitted a proposal for a solution to the impasse. After six years of talks, Indian Prime Minister Jawaharlal Nehru and Pakistani President Mohammad Ayub Khan signed the Indus Waters Treaty in September 1960.
The treaty gave the waters of the western rivers—the Indus, Jhelum, and Chenab—to Pakistan and those of the eastern rivers—the Ravi, Beas, and Sutlej—to India. It also provided for the funding and building of dams, link canals, barrages, and tube wells—notably the Tarbela Dam on the Indus River and the Mangla Dam on the Jhelum River. These helped provide water to Pakistan in the amounts that it had previously received from the rivers now assigned to India’s exclusive use. Much of the financing was contributed by member countries of the World Bank. The treaty required the creation of a Permanent Indus Commission, with a commissioner from each country, in order to maintain a channel for communication and to try to resolve questions about implementation of the treaty. In addition, a mechanism for resolving disputes was provided.
Numerous disputes were peacefully settled over the years through the Permanent Indus Commission. In a significant challenge to the treaty, in 2017 India completed the building of the Kishanganga dam in Kashmir and continued work on the Ratle hydroelectric power station on the Chenab River despite Pakistan’s objections and amid ongoing negotiations with the World Bank over whether the designs of those projects violated the terms of the treaty.
Q.3 Define Pakistan history of agriculture sector and also elaborate the factors that affects the agriculture sector.
Agriculture is considered the backbone of Pakistan’s economy, which relies heavily on its major crops. Pakistan’s principal natural resources are arable land and water. Agriculture accounts for about 18.9%  of Pakistan’s GDP and employs about 42.3% of the labour force. The most agricultural province is Punjab where wheat & cotton are the most grown. Mango orchards are mostly found in Sindh and Punjab provinces, making it the world’s 4th largest producer of mangoes.
Barley and wheat cultivation—along with the domestication of cattle, primarily sheep and goat—was visible in Mehrgarh by 8000–6000 BCE. They cultivated six-row barley, einkorn and emmer wheat, jujubes and dates, and herded sheep, goats and cattle. Residents of the later period = put much effort into crafts, including flint knapping, tanning, bead production, and metal working. The site was occupied continuously until about 2655 BC.
Irrigation was developed in the Indus Valley Civilization by c. 4500 BCE. The size and prosperity of the Indus civilization grew as a result of this innovation, which eventually led to more planned settlements making use of drainage and sewers. Sophisticated irrigation and water storage systems were developed by the Indus Valley Civilization, including artificial reservoirs at Girnar dated to 3000 BCE, and an early canal irrigation system from c.2600 BCE.
Archaeological evidence of an animal-drawn plough dates back to 2500 BC in the Indus Valley Civilization.
Fishery and fishing industry plays an important role in the national economy. With a coastline of about 1046km, Pakistan has enough fishery resources that remain to be fully developed. It’s also a major source of export earnings. Aquaculture is a rapidly developing industry. Punjab Province has demonstrated rapid growth in fish farming. GIFT Tilapia culture has been introduced recently in Pakistan (especially Punjab).
Fertilizers are the main inputs used to achieve high and fast rates of agricultural return. For instance, one kilogram of nutrient fertilizer produces about 8 kg of grain. In Pakistan, almost all the soil is deficient in nitrogen, about 80% to 90% is deficient in phosphorus and 30% in potassium. Balanced fertilization is defined as the optimum yield of fertilizer necessary for optimal use of fertilizers and other inputs for all the necessary nutrients
Credit is a basic and important necessity of the agricultural sector and any other commercial activity. Credit plays an important role in the commercialization and modernization of agriculture in rural economies. Institutional credit also has an important role in the agricultural sector. Modern agricultural technology is necessary for national and economic development, and the use of such technology in rural economies is only possible when farmers are provided credit for the purchase of modern technological inputs
Materials and methods
This study explored the impact of major factors on the agricultural productivity in Pakistan over the period of 1978–2015. Annual time series data were collected from the Pakistan Bureau of Statistics, the Statistical Year Books and the Economic Survey of Pakistan (various statistical supplements). The variables used in this study were: Agricultural Gross Domestic Product (AGDP) (in million rupees), cropped area (in million hectares), water availability (in million acre feet), fertilizer off-take, improved seed distribution and credit distribution respectively.
The agricultural sector in Pakistan directly supports the country’s population, and accounts for 26% of the GDP. Major crops include sugarcane, rice, wheat, cotton, vegetables and fruits. There is thus a critical and pressing need to improve agricultural production to make more the use of resources such as water and land more effective. However, in the Pakistan the irrigation system is mostly controlled by landowners, who have about 40% of the arable land, making it difficult to bring about reforms.
The results of the study indicate that wheat price support have contributed significantly in increasing agricultural output of the Punjab province. Wheat crop is very important from food security point of view; the price support programme for wheat should be continued. This support can be extended under the WTO because current total AMS of Pakistan is negative and there are as such no reduction commitments in this regard. In the province of Punjab the contribution of food trading services towards agricultural output is not positive according to the findings of the study. Therefore, government should gradually disengage
itself from food trading services and enable the private sector to extend these types of services by themselves. The results of the study indicate that wheat price support have contributed significantly in increasing agricultural output of the Punjab province. Wheat crop is very important from food security point of
view; the price support programme for wheat should be continued. This support can be extended under the WTO because current total AMS of Pakistan is negative and there are as such no reduction commitments in this regard.
In the province of Punjab the contribution of food trading services towards agricultural output is not positive according to the findings of the study. Therefore, government should gradually disengage itself from food trading services and enable the private sector to extend these types of services by themselves. The results of the study indicate that wheat price support have contributed significantly in increasing agricultural output of the Punjab province. Wheat crop is very important from food security point of view; the price support programme for wheat should be continued. This support can be extended under the WTO because current total AMS of Pakistan is negative and there are as such no reduction commitments in this regard. In the province of Punjab the contribution of food trading services towards agricultural output is not positive according to the findings of the study. Therefore, government should gradually disengage itself from food trading services and enable the private sector to extend these types of services by themselves.
The results of the study indicate that wheat price support have contributed significantly in increasing agricultural output of the Punjab province. Wheat crop is very important from food security point of view; the price support programme for wheat should be continued. This support can be extended under the WTO because current total AMS of Pakistan is negative and there are as such no reduction commitments In the province of Punjab the contribution of food trading services towards agricultural output is not positive according to the findings of the study. Therefore, government should gradually disengage itself from food trading services and enable the private sector to extend these types of services by themselves.
Q.4 Explain the role of telecommunication in commercial development of Pakistan.
The telecom sector is one of the fastest growing segments of Pakistan’s economy and is a key driver for growth. There are an estimated more than 100 Million cellular users and the sector directly or indirectly employs approximately 1.36 Million people. This note captures a summary of the recent developments in the regulatory framework for the telecommunication sector. We need not mention that the telecom sector is complex, extensively regulated and rapidly evolving to keep up with the global markets and initiatives. As such, the following is only intended to provide a high level summary and should not be construed as an exhaustive analysis of all regulatory/legal issues that will be affect a potential investor. Accordingly, specific financial, legal and regulatory advice should be sought to ascertain and understand the applicable legal and fiscal regime before any investment decision is considered.
Establishment of the Pakistan Telecommunication Authority
Telecommunications Regulatory Environment (TRE) index summarizes stakeholders’ perception of the regulatory and policy environment and provides insight into how conducive the environment is for further development and progress. The most recent survey was conducted in July 2008 in eight Asian countries, including Pakistan. The tool measured seven dimensions: (i) market entry; (ii) access to scarce resources; (iii) interconnection; (iv) tariff regulation; (v) anti-competitive practices; (vi) universal services; and (vii) quality of service; for the fixed, mobile, and broadband sectors
The principal legislation governing the telecom sector in Pakistan is the Pakistan Telecommunication
(Re-organization) Act, 1996 (the Act). Some of the main features of the Act include:
Creation of the Pakistan Telecommunication Authority (PTA) to regulate the telecom sector;
Creation of the Frequency Allocation Board (FAB) with the responsibility of allocating and assigning frequency spectrum to the Government of Pakistan (GOP), telecom system / service providers, broadcasting operators and private users of wireless systems. The FAB replaced the Pakistan Wireless Board established under The Wireless Telegraphy Act, 1933;
Creation of National Telecommunication Corporation to provide telecom services (on a non-exclusive basis) to armed forces, defense projects, the GOP, Provincial Governments and such other Governmental institutions as the GOP may determine;
Transfer of telecommunication services to the private sector;
Power of the GOP to issue policy directives to the PTA; and
Establishment of the Pakistan Telecommunication Company Limited (PTCL)1 under the
Companies Ordinance, 19842 with a limited exclusivity period to provide basic telephone services under the Act.
Deregulation of the Telecom Sector the GOP announced the Deregulation Policy for the Telecommunication Sector to achieve the following objectives:
Ø To increase service choice for customers of telecommunication services at competitive and affordable rates;
Ø To promote infrastructure development, especially infrastructure that will increase teledensity and the spread of telecommunication services in all market segments;
Ø To increase private investment in the telecommunication sector and encourage local telecom manufacturing / service industry;
Ø To minimize exposure to the gop’s revenue base in the short term;
Ø To liberalize the telecommunication sector by encouraging fair competition amongst service
Ø To accelerate expansion of telecommunication infrastructure to extend telecommunication
Ø Services to un-served and under-served areas;
Ø To maintain an effective and well defined regulatory regime that is consistent with
Ø International best practices;
Ø To establish two categories of basic services licenses: local loop licenses for fixed line
Ø Telecommunication and long-distance and international licenses for connectivity between
Ø To maintain consistency with pakistan’s it and internet promotion policy of low prices for
Ø Bandwidth to make internet access affordable; and
Ø To safeguard pakistan’s national and security interests.
Developed countries started to developed or sustain their development in telecommunication in that era; on the other hand developing countries also started to develop their telecommunication infrastructure after realizing its importance in economic development. They have privatized state-owned firms and slowly introducing telecommunication sector reforms. Not only a policy development in this sector started but researchers also tried to contribute to develop a theoretical base for policy implications, but on limited scale. Telecommunication sector succeeded to have an important focus as an essential component of the economic infrastructure. However with the strong existence of General Agreement of Trade in Services (GATS) under WTO brought a revolutionary reforms in telecommunications sector. Liberalization and deregulation in telecom sector, developing countries were also in a position to increase the contribution of telecom sector in GDP ratio. With the emergence of liberalization in this sector, the inflow of capital in the form of foreign direct investment increase. Thus, market converted into perfect competition and many service providers came in the market of developing countries. Mobile phone market went to its boom and the high quality of services at low tariff expanded market and thus makes economies of scale possible. High speed internet and broadband introduced in business development which contributed significantly in the development of the industry in the country. On the other hand some countries such as Korea, Japan, and China not only developed their telecom service industry but also developed their telecom equipments market and raised the value of net export with the help of import of telecom equipment. Before 1990s there was the availability of fixed line services at limited level, but the revolutionary steps changed the overall structure of telecommunication industry and not only mobile phone companies but also the wireless internet service, and pay phone card service provider expanded their business which, leads to financial transaction between different countries enhancing economic development.The importance of telecommunication in our society has been experienced by one and all. It also has a strong effect on our economic activities. We have already learned how telecommunication is important for healthcare and education, and now we shall discover what kind of role it plays in agriculture, transportation, and administration.
• Agriculture has a very crucial role to play as far as the economy of any country is concerned. With the help of telecommunication, farmers can be informed about possible earthquakes, thunderstorm or other natural disasters through simple meteorological information. They can also be taught how to avert the consequences of such disasters as fast as possible.
• Telecommunication has played an important role in the transport sector always. It is used to fly and land airplanes, and to manage a fleet of vehicles in passenger transport and freight. With the help of telecommunication, it also has become possible to manage the movement of human traffic.
• The machinery of the government is also dependent on telecommunication, with the help of which the system enjoys a greater performance. For instance, the police need telecommunication to maintain control and command on the sea, air, and land. In public administration, telecommunication plays an important role in coordinating the three tiers of the government.
By having an impact on all spheres of life, telecommunication helps bring big changes in the world. This is in fact why the world is being able to develop and grow at such great pace. Telecommunication offers us not only better social awareness but also a better life at large. As telecommunication keeps on progressing, keeps on growing, human life will also progress, grow, and become a lot easier, a lot better.
Q.5 What are the major sources of electricity in Pakistan and also explain them?
Electricity in Pakistan is generated, transmitted, distributed, and retail supplied by two vertically integrated public sector companies, Water and Power Development Authority (WAPDA) responsible for the production of hydroelectricity and supplied to the consumers by the power distribution companies (DISCOS) under the Pakistan Electric Power Company (PEPCO) . Currently there are 11 distribution companies and one National Transmission and Dispatch Company (NTDC) all in the public sector (except Karachi), and the Karachi Electric (K-Electric) for the city of Karachi and its surrounding areas. There are around 42 independent power producers (IPPs) that contribute significantly in electricity generation in Pakistan.
The core objectives are:
- To strengthen the institutional capacity of civil society organizations, and support the creation of organizations of the poor, that can work together to alleviate poverty and achieve MDGs and now SDGs
- To build public-private partnerships with the purpose of increasing market access and market share for poor communities.
- To ensure that public services for poor communities are available and adhere to identified quality standards
Pakistan’s electricity sector is a developing market. For years, the matter of balancing the country’s supply against the demand for electricity had remained a largely unresolved matter. The country faced significant challenges in revamping its network responsible for the supply of electricity. Electricity generators were seeking a parity in returns for both domestic and foreign investors indicating it to be one of the key issues in overseeing a surge in electricity generation when the country was facing growing shortages. Other problems included lack of efficiency, rising demands for energy, and political instability. Provincial and federal agencies, who are the largest consumers, often do not pay their bills. At one point electricity generation had shrunk by up to 50% due to an over-reliance on fossil fuels. The country was hit by its worst power crisis in 2007 when production fell by 6000 Megawatts and massive blackouts followed suit. Load shedding and power blackouts had become severe in Pakistan before 2016.The Islamic Republic of Pakistan which became an independent state in 1947 is governed by a federal parliamentary constitution. It is globally the sixth most populous country with a population of approximately 200.000 million people and a comparatively high population growth rate of 1.5%. Pakistan is a semi-industrialized economy with a presentable textile, food processing and agriculture base and a per capita GDP of 1561 USD. According to the World Bank, Pakistan has important strategic endowments and development potentials. Its labour market is the 10th largest globally and Pakistan is number 67 amongst the global exporters. Historically, Pakistan has always been an energy importer and is highly dependent on fossil fuels. With the rising fossil fuel prices, the cost of oil importing is creating a dent on Pakistan’s foreign exchange reserves. The rising oil price along, with the rising demand for uninterrupted power, is creating additional pressure on the already fragile electricity grid of Pakistan. Pakistan is blessed with a high potential of renewable energy resources, but so far, only large hydroelectric projects and few wind and solar projects have harnessed this potential. Renewable Energy accounts for 1136 MW presently installed capacity of solar PV, wind and biomass based power projects. Possibilities also exist in promoting greater use of wind, solar and biomass project.
Previously Government of Pakistan had announced various policies and enabling environments such as feed-in tariff/upfront tariff, tax incentives, net metering, long term refinancing facility and micro-financing schemes for promoting corporate sector investment in the renewable energy (RE) sector. Taking the market growth, technological developments, recent cost reductions and new financial mechanisms into account, the GoP decided to liberate the market and instigate more competition amongst the private sector players for delivering electricity from RE resources (i.e. wind/solar) at optimal tariff rates. Accordingly, the GOP introduced tenders to call for competitive/reverse bidding for the RE power projects and the first phase of bidding for wind power projects has been initiated
- Solar Village Electrification: More than 40,000 villages which are so far from the grid that it becomes costly and uneconomic to extend the grid to these locations are prime candidates for village electrification using Solar Home Systems (SHS).
- Solar Water Heaters and Geothermal Heat Pumps: There is a big market for investors for SWH and GHP in domestic and industrial sectors. Only 22% of the population has access to piped natural gas.
- Productive use in agriculture: Solar Powered Efficient Pumps could replace the 260,000 water pumps (tube -wells) with a sanctioned load of over 2,500 MW operated with electricity, and another 850,000 Diesel Water Pumps that consume 72,000 TOE of Diesel annually.
- Street Lights: Pakistan has over 500,000 Street Lights with a sanctioned load of over 400 MW. Most of these Street Lights are based on 80W, 125W and 250W Sodium Lights. They offer opportunities to be replaced with Efficient Solar Lighting.
Biomass availability in Pakistan is also widespread. Approximately 50,000 tonnes of solid waste, 225,000 tonnes of crop residue and over 1 million tonnes of animal manure are produced daily. It is estimated that potential production of biogas from livestock residues is 8.8 to 17.2 billion meters3 of gas per year (equivalent to 55 to 106 TWh of energy). Large sugar industry in Pakistan also generates electricity from biomass energy for utilization in sugar mills. Annual electricity production from bagasse is estimated at 5,700 GWh – about 6% of Pakistan’s current power generation level. In the present electricity crisis recently government allowed sugar mills to supply their surplus power up to a limit of 700 MW to the national grid. It is estimated that sugarcane bagasse can potentially be used to generate 2000 MW of electric power. However presently it is difficult to obtain more electricity from sugar mills due to grid limitations because most of the sugar mills are located in remote rural areas which are not even connected to the national grid. Integration of electricity generated from biomass energy to the national grid can ease the electricity shortage in the country.” A large number of people in rural areas in Pakistan depend on forests for their livelihood, fuel wood and shelter. Many use the forests in unsustainable ways to satisfy their domestic energy needs.
Large Hydropower has proved to be the cheapest source of electricity. Despite the high availability of hydro power resources low investments in this sector hamper the utilization of this potential source. Smaller (less than 50 MW) sites are available throughout the country. The micro – hydropower sector has been relatively well established yet. Since the mid-80s micro-hydro power plants supply electricity to some 40,000 rural families. The electricity market of Pakistan in unbundled at the generation and distribution but is bundled at the Transmission point. The National Transmission and Dispatch Company (NTDC) is only responsible for transmission and dispatch of electricity. As of December 2006, there are 16 IPPs investing in Pakistan.