Coal industry of pakistan Essay

Pakistan has a very large coal reserve base only Thar coal can be used to make 40,000 MW of Electricity for the next 100 years. Regional powers like China are very much interested in the project and are willing to pour billions of dollars in these projects if the Govt. of Pakistan issues sovereign guarantee. Sector will essentially contribute to the wiping out of the difference in the electricity shortage. It would stabilise the economy as oil imports are going to decrease which contribute to $8 Billion of our imports. Coal can be exported to countries around the world. Many countries are shifting to coal as means of energy and this raises export opportunity for the coal exports too. The labour cost in the mining industry is very low as compared to other parts of the world and essentially have higher profit margins. The Tax rate is nil during exploration, mine construction and extraction phase. WEAKNESSES Serious lack of infrastructure facilities Many government restrictive policies and not much help provided by the government. Government not fulfilling there contracts. There is no consistency in Government policy. Low quality coal available mostly Too much capital required to extract the coal. Thermal energy would mean more pollution OPPORTUNITIES Expansion of energy base of Pakistan Expansion of export base and reduction of oil imports. Opportunity to boost lagging industries. Growing demand of Coal THREATS Foreign involvement which might restrict local development Restrictive policies and red tapism by government Control of reserves by only a few major players Oil Lobby being a very strong force in Pakistan. Problem faced by this Industry Lack of safety and security Pakistan’s image and political situation is a deterrent to investment Pakistan’s image and political situation is a deterrent to investment The industry sustained a stab back in the recent years. Lack of knowledge of the mineral potential. Lack of Labour Safety. Lack of Government vision. Development expenditure being used for crisis management purposes. The industry relies on the findings of the PCSIR laboratories.PCSIR labs do not possess the necessary tools and equipments for refinement of minerals. Not a convenient supply of coal and at times they have to revert to oil and gas for there production mostly the cement companies. Recommendation for the industry There has to be innovation in the sort of mining techniques being adopted in Pakistan. Adoption of modern exploration techniques like photo geology, satellite imaging, Underground Gasification can be useful for the industry. Information regarding coal reserves, grades and annual production must be maintained for the information of investors that may guide their future programme and work. And it must be easily available on Government portal. Mineral development fund to be created & spent by outsourcing the infrastructure programmes to private organizations. Allocation of funds from World Bank for mineral sector programmes. Due representation to be given to all the stakeholders from mineral sector i.e. laborers, Investors e.t.c. In order to for people to be interested in the mining sector, government has to provide facilities for the workers and management near to the mining facilities. Improve the efficiency of the emergency rescuers in case of an accident in a mine. Participate in international minerals exhibitions and fairs for creating awareness of Pakistan’s mineral potential to foreign investor. This would also built the Image of Pakistan. In most of the mining camps basic facilities of roads and other basic infrastructure facilities have not been provided. As a result the mine to market accessibility is very low and also increases the cost of mining. More degrees relating to the mining industry should be started as there are only 3 till date in Pakistan A separate board for mining be made involving technocrats. Train & improve capacity of all persons in minerals managements. Establish mini power plants on coal in the mining areas. Provide in service training to technical staff i.e. laborers. Establish machinery-pool to extend services on cost effective basis Provide soft loans in the mining Industry.