KARACHI:
Foreign programme assistance for the coal and energy sector of Sindh has declined, which reflects donor’s fatigue due to progress of Thar project at a snail’s pace from fiscal years 2009 to 2012, show findings of the Sindh Economic Survey.
Although foreign programme assistance for energy projects in Sindh is limited, the survey stressed that donor assistance would increase only when foreign investor interest was revived.
However, the survey also said that without major public investment in energy projects, foreign investment could not be attracted to this sector.
The Institute of Business Management (IoBM) released the Sindh Economic Survey 2009-2011 on Thursday, which was published with a grant from the Higher Education Commission.
According to Sindh’s Annual Development Plan (ADP), the share of foreign programme assistance in the coal and energy sector dropped to 0.3 per cent in fiscal year 2011 compared to 14.61 per cent in 2010, the survey noted.
This happened despite the fact that the share of foreign assistance in the ADP had increased continuously over the last three years. The share of foreign assistance in the ADP was 5.67 per cent in financial year 2010, 5.71 per cent in 2011 and 12.63 per cent in 2012.
Most of the foreign programme assistance had been going to agricultural, coastal development, drinking water and drainage projects during the period under review.
Foreign assistance component in the ADP amounted to $62.9 million (Rs5.4 billion) in 2010, $55.3 million (Rs4.7 billion) in 2011 and was expected to be around $187 million (Rs16.1 billion) in 2012.
Published in The Express Tribune, February 18th, 2012.
COMMENTS (5)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
@jamil did u know 75% of chinas power and 51% Indias power enery comes from coal ....ur comment is so laughable ... did u know thar coal is equal to 700billion barrels of oil and 900 trillion cubic feet of gas .! think again !
@Jamil: China is one of largest producers of coal in the world. The idea that China does not take coal power seriously is laughable.
@Jamil
To an empty stomach, a steak whether be it well done or medium rare, doesnt make a difference.
Pakistan doesnt have the luxury of choosing energy sources.
And this is a clear fallout of the Reko Diq project. When Pakistan makes a deal with a foreign firm and then backs off after the company has already invested $220 Million, there's a trust deficit which will be reflected in the future project "RISK PREMIUMS"
@ Jamil, But data speaks otherwise in the region. You may Google the PM of India directive to coal authorities for timely assurance to the private sector for the supply of coal. China's is still heavily relying on coal. So is Brazil. Thar coal project is making progress but unfortunately people in Islamabad are more petrol/diesel friendly. After all powerful lobbies and interest groups matter !
http://www.bloomberg.com/news/2012-02-16/coal-india-may-revive-fuel-imports-to-comply-with-prime-minister-s-order.html
Coal based energy is on the way out. No country or donor organization (such as WB or IFC) are going to invest in Thar Coal. Not even China will invest as it is moving to cleaner and renewable energies.
Coal is the biggest polluter on earth. Just having coal does not do much good. It is what you do with it that matters. Sindh has to find the money and expertise for this project or just forget it. Thar Coal project is a non-starter from the beginning.