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Pakistan's Energy & Water - News and Updates

Iran plans to import 1 GW of energy to Pakistan

Iran and Pakistan signed a number of contracts in the field of electricity. Last year, exports of Iranian electricity to Pakistan doubled and another power line with a voltage of 230 kV will be put into operation in the near future.

One of the most important joint Iranian-Pakistani projects is the construction of a power line connecting the city of Iranian Zahedan to Quetta in Pakistan.

Mr Abdolhamid Behbudi Fard director of the External Relations Department of the Ministry of Energy of Iran said that the voltage of the transmission line will be 500 kV and it will deliver 1,000 MW of electricity.

Earlier, Mr Mohammad Behzad deputy energy minister of Iran said that with the construction of power plants in the province of Sistan and Baluchestan with capacities of 1.5 MW and a 700-kilometre transmission line that will connect Zahedan and Quetta, conditions will be created for the export of 1 MW of electricity to Pakistan.
 
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‘Solar energy is the answer to Pakistan’s power crisis’

LAHORE: Solar energy generation is the real time solution to Pakistan’s growing energy scarcity problem whereby environment-friendly renewable energy can be produced in the shortest possible time, said Chairman of Buksh Energy Pvt Ltd Asim Buksh.

He quoted a World Bank report, which said that Pakistan had massive solar energy generation potential and an available production capacity of 2.8 million MW, while talking at the Buksh Group head office on Thursday.

The Buksh Group has successfully shifted a majority of its electricity load on renewable solar energy from a conventional Wapda transmission system by installing an off grid power generation system at its head office.

“If renewable energy generation options are not adopted, the power shortage will become more acute – to 19000 MW by 2020,” said Buksh. His company has been offering off grid energy solutions to businesses, offices and domestic consumers with two to three years’ payback period by reducing their electricity bills. Solar power generation is the cheapest source of energy, he said.

Talking about some Corporate Social Responsibility (CSR) initiatives, he said that the Buksh Foundation – a non-profit organisation had successfully electrified two villages of Sahiwal districts, in Punjab while the process of electrifying other districts was also underway.

“We have provided solar lanterns to the villagers. These are recharged through a solar generator that is installed at one house in that village,” he said. One solar generator can recharge 50 lanterns at a time, he said. The company has provided off grid electricity solutions to those villages which are not electrified by Wapda or any other electricity supply company, he said.

“By providing solar lanterns we have given a new life to these villagers. After the installation of solar lanterns in these two villages, villagers from adjacent villages have also approached us to install the same technology in their villages too,” Buksh said.

Earlier, in the briefing, the CEO of Buksh Foundation Fiza Farhan said that Buksh Energy was the leading Energy Servicing Company (ESCO) operating in Pakistan.

“Buksh Energy has successfully converted the head office operations on solar energy. It is an off grid/hybrid solar PV solution which has enabled the head office to get rid of the conventional and unreliable sources of energy including UPS and generators. This off grid/hybrid solar PV solution incurs only a one time investment cost and is a minimal maintenance solution that provides its users with a payback of less than four years and a sustainable project life of 25 years,” she said.

The total energy load had been reduced by 80 percent and the lighting load of 13.59 KW had been reduced to 2.52 KW, she said. The project has rendered annual savings of Rs1,949,472 and a payback period of 1.8 years.

Farhan said that the company was working on micro, meso and macro level to provide alternate, reliable and sustainable energy solutions for commercial, residential and industrial purposes.

Moreover, the company was working with credible international vendors which include big names such as SMA.

http://www.thenews.com.pk/Todays-News-3-139524-Solar-energy-is-the-answer-to-Pakistans-power-crisis
 
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$46 Million Project to Reward Pakistani Students with Solar Panels for Good Grades


In a unique initiative, the government of the Punjab province in Pakistan has decided to reward students with solar panels for their academic performance in school. An estimated 300,000 students will be given solar panels, with each having the capacity to power one fan and one light. The cost of the Chief Minister’s Ujaala (Light) Programme (CMUP) is estimated at around $46 million.

The Punjab government will provide these solar panels to all students who scored 50 percent or more in their class 9 academic exams. While this initiative is an excellent one and may be matched by very few across the world, sadly these panels would have a warranty of just one year. Usually, solar panels used in power projects have a warranty of around 20-25 years.
In addition to distributing these solar panels, the government could add on to this excellent initiative by organising brief workshops for the students explaining to them the basics of power production from solar panels. Professionals must also help the students understand the importance of maintenance of the panels to make sure they remain operational for a long time.

$46 Million Project to Reward Pakistani Students with Solar Panels for Good Grades - CleanTechnica
 
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Redundant rental power plant returned

KARACHI: A rental power plant, which was lying idle since last two years, has been returned to respective company.

The redundant Karkay power plant was imported by government two years earlier claiming that it would produce 232 megawatt electricity. But it could generate only 30 megawatt power and after 2 years this power plant which was based in a ship has been returned.
This rental power plant caused financial loss of million of dollars to national coffers as it failed to function to its full capacity during the entire period in Pakistan.

As per NAB spokesman, Karkey Company will pay 20 million dollars to Pakistan which will be received within a few days.
 
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ISLAMABAD:

Given only half-answers by the government, the Supreme Court (SC) took matters into its own hands on Thursday and declared “illegal” the existing formula of linking the review of CNG prices with oil prices.

The populist judgment had drastic effects – both immediate and longer term. Shortly after the announcement, the Oil and Gas Regulation Authority (Ogra) issued a notification reducing CNG prices by over a whopping Rs30 – a 33% slash.

Officials also told the court that an entirely new mechanism was being worked out with stakeholders, and the existing arrangement, in place since 2008, would be scrapped immediately.
The new arrangement would factor in other issues such as gas demand, etc.
According to the notification issued by Ogra, CNG will be sold in Region 1 (Potohar, Khyber-Pakhtunkhwa, and Balochistan) at Rs61.64 per kg (a Rs30.90 price reduction), while the price of CNG for Region 2 (Sindh, Punjab,and its areas excluding Potohar) would be Rs54.16 per kg (a Rs30.38 price reduction).

A two-judge bench, comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Jawwad S Khawaja, which had taken up a case about weekly pricing of fuel prices, passed an interim order in the case on Thursday stating that since locally-produced CNG had no link to global oil prices, operating costs and profit rates on CNG prices were against the law.
During the proceedings, Ogra Chairman Saeed Ahmed Khan accepted the top court’s judgment, but appealed the court to give the regulator time to implement the price reduction from November, citing Eidul Azha holidays as a possible hindrance.

Chief Justice Chaudhry, however, turned down the request and, in lighter vein, asked the regulator to consider the price slashes an “Eid gift” for consumers. Furthermore, the court observed that CNG prices will not be revised on a weekly basis and said there would be no parity of CNG prices with other petroleum products.

Talking to The Express Tribune after the court hearing, the Ogra chairman said, “I am happy with this decision of the court that rightly pointed out anomalies in the present pricing mechanism, but my single voice was never heard by anyone at the helm of affairs.”
Wider affect

Petroleum and Natural Resources Secretary Waqar Masood, who attended the hearing on Thursday, told the court that the weekly pricing mechanism for petroleum products had been suspended until the Economic Coordination Committee (ECC) of the cabinet gives its decision, adding that prices would be revised after six months.

As per the petroleum secretary’s written statement submitted to the court, the Ministry of Petroleum and Natural Resources will expend additional efforts to ensure that domestic and life-line consumers’ interests in the matters of gas pricing are fully protected, the arrangement evolved for linking the price of CNG with the price of petrol on weekly basis will be abandoned, and that the cost of gas for CNG will be adjusted only after the determination of the prescribed price by Ogra as per law.

Furthermore, the MoU through which government and CNG associations had agreed on a formula for operating cost of CNG stations will be immediately suspended and Ogra will develop a new formula after seeking full information about the availability of gas, linkages with alternate fuel, discussions with all stakeholders and after scrutiny of audited accounts of CNG stations as per rules, the secretary added.
Masood was questioned about gas development surcharges. According to report submitted by the Ogra chairman on the details of petrol and CNG pricing, the government’s procurement cost of CNG in Region 1 was Rs 19 per kg whereas the per kg price of CNG in Region 2 was Rs 17.57.
Justice Jawwad S Khawaja observed that, as per his view, the consumers were paying around Rs50 per kg of CNG prices.
“We can also examine the government’s taxes on CNG prices, if someone challenges it under the Constitution,” said Justice Jawwad S Khawaja.
However, the chief justice said the bench would not comment on government taxes as it was necessary to impose taxes to run the state, adding that the court would, however, not allow any illegal action.

The report presented by Ogra also stated that CNG station owners earned a per kg profit of Rs 11.91 and had a Rs20.80 per kg operating cost under the now suspended memorandum of understanding (MoU) inked between CNG associations and the government back in 2008.
In his remarks, Chief Justice Iftikhar said CNG prices could not be changed without adopting the procedure laid down in the ordinance, which binds Ogra to fix prices after a public hearing with the participation of stakeholders to meet revenue requirements sought by gas utilities.
Published in The Express Tribune, October 26th, 2012.

‘Eid gift’: Court shoots down price review, CNG prices crash – The Express Tribune



I sometimes wonder why people in power give so little thought to economic well being of the country.

Supreme Court is supposed to rule on Constitutional matters only; it has no business to deal with pricing of items of everyday use. Pakistan has the largest number of CNG cars in the world? With very little production. Supply/ demand elasticity rules that if you increase the price of CNG, fewer people will use it.

Don’t the high and mighty Justices realize that Pakistan is going to run out of natural gas in next 10 to 15 years! By making CNG cheaper they are encouraging motorists to use more CNG thus leaving less for home and industrial use.What then?

Pakistan will have to import gas from outside and agreement with Iran links the price of natural gas top Dubai crude. Even if you import LNG, prices will be linked directly or indirectly with international oil prices. :hitwall:

But who gives a fig to reality in Pakistan, we all live a cuckoo land.
 
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Dear Mr CJ Your job is to interpret and decide on the constitutional matters and getting lower courts to clear the back log. Stick to it. Please please don’t interfere in something that you have no knowledge, no clue or even an idea about. You are wasting your time as well tax payer’s money.

Here is an enlightened article about interference by the Supreme Court in the price fixing.

Babar Sattar
Saturday, November 03, 2012

Part - I

Legal eye

The writer is a lawyer based in Islamabad.

Why is the honourable Supreme Court fixated with price fixing? Let’s state a few things candidly at the outset. Every sane person wishes for financial security, wellbeing and wealth. We want to make more money to be able to afford a comfortable life. If we can make ends meet, we want to save something for a rainy day. And if we accomplish that we wish to save more to provide for the financial security of our kids. Thus, irrespective of whether we are rich or poor, we wish for more money and cheaper goods.

We complain about the price of commodities, except when we are selling them. We complain about the price of services, except when we are providing them. We complain about the state splurging taxpayers’ money, except when that money is subsidising plots or other goodies being given to us. We complain about the state failing to discharge its duties, except when it tries to discharge its duty of collecting taxes from us. We reminisce about times when a little money went a long way and the dollar cost a lot less.

While we must make our peace with the fact that prices will always go up, it is also true that the way they have gone through the roof over the last few years, due to the incompetence, inefficiency and corruption of the ruling regime, has made sustenance a challenge. Thus, any intervention bringing prices down a notch is popular and celebrated for providing relief to the common man. But popularity or nobility of the ends doesn’t automatically justify the means chosen.

Back in July 2009, the Supreme Court suspended the carbon surcharge the government levied on petroleum products. Later it elected to fix the price of sugar and forced retailers (unsuccessfully) to sell on such price. Did milk and honey start flowing through Pakistan after the court’s intervention? Are we all prosperous today because sugar and petrol have been available across Pakistan on reasonable prices since 2009? And should we all stand up and clap now that the Supreme Court has goaded government functionaries into bringing down CNG price by approximately Rs20 per kg?

The question is not whether CNG station owners are greedy or not, but whether or not it is the business of the state to determine how much profit is legitimate profit. The question is not whether the state should regulate the market to prevent cartelisation or emergence of oligopolies and abuse of monopolistic positions, but whether the state should indulge in price fixing under the garb of regulation. It appears that the consciousness of the generation in control of the state at present is still frozen in the 1960s and smitten with Marxism.

We in Pakistan were probably so preoccupied with Ziaul Haq’s rule and the success of the Afghan Mujahideen that we hardly noticed that the vigorous ideological debate between capitalists and communists ended at some point in the 1990s that led to the writing of scholarly articles proclaiming the “end of history.” So we continue to believe that the Soviet Union crumbled due to its military defeat in Afghanistan and not due to the failure of communism that brought down the Iron Curtain.

We have never debated the painful consequences of Bhutto’s nationalisation policy of 1970 or held the PPP accountable for how this policy devastated not just productive industries but also celebrated institutions of academic excellence. Still enamoured by the half-baked concept of Islamic socialism, we seem to continue to associate private business enterprise with the evil of exploitation attributed to free market and capitalism.

For us employment-generation remains government employing more people, as opposed to implementing policies that create jobs in the private sector. Pro-poor policies mean handing over checks to a select group among a sea of the needy. Making goods and services affordable translates into forcing people to sell cheaper, as opposed to creating a marketplace that affords a level playing field to all, with low barriers to entry, and thus allows competition to drive down prices.

Article 3 of our constitution reflects this confusion. The famous Marxist slogan “from each according to his ability to each according to his need” was deformed in 1973 and included in this article to read, “From each according to his ability to each according to his work.” With the replacement of “need” with “work,” this phrase probably qualifies as the most socialistic-sounding capitalistic gibberish that someone could contrive. Is free-market simply incompatible with the idea of a welfare state?

Socialism might be a great idea on paper. But history has proven so far that the manner in which it gets implemented in practice isn’t beneficial. Anyone with any doubts is welcome to visit Cuba and witness how state control over productive activity sucks ingenuity and initiative out of people. Pakistanis don’t even need to bother with Cuba. One can visit the Steel Mills, Pakistan Railways, PIA or any other state enterprise to see how the potential of profitability gets massacred due to the state’s involvement with business.

How many suo motus will it take to fix the rotting monstrosities that Pakistan Steel Mills, Pakistan Railways and PIA have become? These entities employ probably five times more employees than needed, procurement is marred by corruption and inefficiency and professional advancement of management isn’t linked with performance. Our nationalised banks were a similar spectacle till they were privatised, and miraculously became profitable overnight.

The larger point is that problems rooted in bad economic policies cannot be fixed by legal enforcement. Most judiciaries understand that. And consequently they are loath to interfering with matters of policy or perceiving policy issues as matters of law. Part of the explanation for this restraint lies in the efficacy argument. In democracies, courts don’t make policy choices and they cannot fix bad policies. They can strike down policies that clearly violate rights promised by the law, but they don’t interfere only because judges would have reached a different decision if vested with executive discretion.

Judicial intervention in some areas is incapable of providing sustainable solutions and is likely to trigger unforeseen consequences that can cause more harm than good. The annulment of the Steel Mills’ privatisation might have been popular for being perceived as saving a vital national asset from being divested at a throwaway price. But even if we ignore the poor understanding this precedent betrays of corporate transactions or the addition of litigation risk as a major obstacle to the many others that deter foreign investment from heading to Pakistan, the unintended consequence of the decision has been the loss manifold of the amount that the Supreme Court ruling arguably saved.

Were no lessons learnt from the sugar price fixing debacle? Can the time-tested logic of demand and supply be overturned by edicts of a court and its determination to get them enforced? What if it is true, as the CNG station owners claim, that selling gas at the new reduced price would be a loss-making enterprise? Must the Supreme Court play a part in killing the CNG business, no matter how evil it might be? What if the gas can be sold at the new price and its demand thus multiplies, but there is no gas available for CNG users during the approaching winter months?

If it is the Supreme Court that is instrumental in producing one consequence or the other, how do those unhappy with the outcome hold the Supreme Court accountable? Can we vote the Supreme Court out at the next election because it made bogus policy choices? The CNG price reduction matter has once again highlighted the problematic nature of jurisprudence being produced by the Supreme Court under Article 184(3) of the constitution, driven by its “do good” philosophy some might call populist.

(To be concluded)

Email: sattar@post.harvard.edu

Price-fixing fixation - Babar Sattar
 
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I sometimes wonder why people in power give so little thought to economic well being of the country.

Supreme Court is supposed to rule on Constitutional matters only; it has no business to deal with pricing of items of everyday use. Pakistan has the largest number of CNG cars in the world? With very little production. Supply/ demand elasticity rules that if you increase the price of CNG, fewer people will use it.

Don’t the high and mighty Justices realize that Pakistan is going to run out of natural gas in next 10 to 15 years! By making CNG cheaper they are encouraging motorists to use more CNG thus leaving less for home and industrial use.What then?

Pakistan will have to import gas from outside and agreement with Iran links the price of natural gas top Dubai crude. Even if you import LNG, prices will be linked directly or indirectly with international oil prices. :hitwall:

But who gives a fig to reality in Pakistan, we all live a cuckoo land.

Very well said sir!

I asked somebody about this CNG thing a year or so back.

And his reply was that it was the most stupid thing to do, to run the country's transport on 2 different fuels, so now you don't have either of them for full utilization in homes and industry and electrical units.

This decision IMO was taken without any considerable thought into the amount of CNG that would be in demand by this huge population, and also the production capacity of the country, and whether we would be able to cope with it and bring both demand and supply on par with each other (something in which we have failed apparently).

Now with lowering of prices, CNG is going to be consumed more by cars, thus further increasing the deficit and also forcing the government to make some subsidies perhaps.

Another point in this whole CNG fiasco is the mushroom growth of CNG plants. You have a CNG station in every other street of every muhalla and everybody finds it profitable to make a CNG station. There should have been a control on this from the first day, but sadly no step was taken, and this industry has grown into a mafia.
 
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Second part of the Legal Eye about price fixing:


Price-fixing fixation


Babar Sattar
Saturday, November 10, 2012

Part - II

Legal eye

If political questions are allowed to fester long enough they transform themselves into legal questions. In a polity where the system of governance crumbles, proliferation of legal disputes is natural. And courts can’t be faulted for adjudicating legal disputes brought before them merely because they emerged from political questions. It is indisputable that the Supreme Court has the final word in declaring rights and obligations of citizens and the state. It is also indisputable that the SC has the final word in interpreting the constitution. But the fact that the SC is the ultimate arbiter of disputes and interpreter of the law does not mean it doesn’t get things wrong.

Critiquing the SC’s rulings neither amounts to questioning the validity nor the authority of the court. But just because rulings of the apex courts are binding doesn’t mean they are right. And just because the judiciary is vested with constitutional authority doesn’t mean it is being discharged unerringly. The law being developed and the manner in which the judiciary approaches its constitutional mandate are matters of public importance that must be debated vigorously since it affects all of us.

The interim rulings of the SC in the CNG case and the Balochistan law and order case highlight problems inherent in the exercise of the apex court’s now-dilated powers under Article 184(3) of the constitution. The popular argument (that a vacuum has been created due to failure of governance in the country, which by necessity has to be filled by other state institutions) used to justify the inflated role of the SC is neither a legal argument nor a useful guide to interpreting the scope of Article 184(3)’s powers.

Starting with the CNG case, the argument that the SC didn’t fix the reduced CNG price in its order but only recorded the federal government’s statement on the estimated reduced price is disingenuous. Even if we disregard the atmosphere in Court 1, where pushing a line disagreeable to the court can become very unpleasant for the summoned civil servants, why did the court need to record the reduced price as part of its order that had been predicted by the ministry, when the operative part of the order was a direction issued to Ogra to determine what the CNG sale price ought to be?

Once such indicated price made it into the SC order could Ogra exercise any discretion or exhibit the audacity to reach a different conclusion? And when Ogra goes ahead and underwrites the price that has the SC’s tacit approval, what legal remedy will those CNG station operators have who are aggrieved by such a decision of the regulator? More importantly, in ordering Ogra to determine a reasonable price as part of its interim order, did the SC not prejudge the underlying legal issue: does Ogra have the legal authority to determine the sale price of CNG?

Let’s recall the CNG price issue. Prior to the execution of the MoU between Ogra and CNG station operators, which fixed the sale price of CNG and allowed an obnoxious profit to CNG retailers, the price of CNG was determined through open competition between CNG stations. In the recent hearing before the SC, the federal government submitted that the MoU with CNG stations was illegal and was being suspended by the government. It didn’t say why it had been entered into in the first place or who was responsible for authorising and executing such a pernicious agreement that produced windfall for CNG station owners at the cost of consumers.

The obvious questions that come to mind are: By entering into this MoU did Ogra exercise its public authority unfairly? Has Ogra been in a state of regulatory capture unduly benefiting CNG station owners and, if so, who are the public servants who ought to be held to account? Does Ogra have the legal authority to fix CNG retail prices? Was this MoU a prohibited agreement under competition law that manipulated prices and restricted competition? The SC, with its zealous focus on the sale price of CNG, didn’t get into any of these questions.

Ogra has been issuing CNG sale price notifications under Section 43B of the Ogra Ordinance. This was introduced through the Ogra Amendment Ordinance 2009, which was laid before the parliament on April 10, 2009, but never became an act of parliament and consequently lapsed. With its lapse, amendments were hurriedly introduced in the 1992 CNG Rules (issued under a 1948 mines and oilfields control law), to reclaim CNG retail price-fixing authority for Ogra. The legal validity of these rules remains dubious. But Ogra hasn’t been fixing prices pursuant to these rules. It has been doing so under Section 43B of the Ogra Ordinance that simply doesn’t exist anymore.

So why order Ogra to fix CNG retail price without first determining if it has the legal authority to do so and what legal recourse does anyone who is aggrieved by the order now have? This highlights the twin problems of Article 184(3): when the SC elects to become the court of first instance, legal infirmities easily creep into its orders compromising the law being produced by our apex court; and more than producing bad jurisprudence, the decision of the SC to act as a court of first instance, while also being the ultimate court of the land, robs aggrieved parties of their right to appeal and consequently of their due process rights.

The Balochistan law and order ruling raises questions not only about the approach of the court to constitutional interpretation but also a flawed doctrine of democracy being propounded by the court. The SC has continued to emphasise more recently that none of the state institutions, including the judiciary, have any inherent powers. The only power they have flows from the text of the constitution. And yet in many rulings produced by the SC, including the Balochistan ruling, there is hardly any mention or interpretation of the text of the constitutional provision upon which the order relies.

Which provision of the constitution vests in the SC the authority to declare that if public office holders serving in a provincial government fail to discharge their obligation to uphold fundamental rights of citizens, the entire government loses its ‘constitutional authority’ to govern? In the Asghar Khan case, where the army chief and DG ISI were found to have violated the constitution and fundamental rights, the court is at pains to explain that their acts were personal and the institution they represented wasn’t culpable. So why are the acts or omissions of Balochistan government’s officials not personal?

While the SC can affix the legal responsibility of individual public office holders, does the constitution empower it to affix collective responsibility of an elected government or rule that such government has lost its legitimacy? In the 18th Amendment cases we saw the SC wading into the province of the legislature, despite clear prohibition in Article 239 to the contrary. We have also seen the SC reduce the role of the parliamentary committee on judicial appointments to a post office. Don’t these rulings when viewed together project a disconcerting judicial approach to democracy and trichotomy of state power?

The wisdom of the idea that democracy and rule of law go hand in hand is as relevant for the judiciary as it is for parliament and the executive. Khaki-rule doesn’t become representative because people yield to martial law. Likewise our SC cannot presume to possess representative credentials merely because a popular movement backed its restoration. The authority that the SC claims or the orders that it passes cannot be grounded in public expectations but must spring from the text of the law and the constitution. By definition, commitment to rule of law demands fidelity to legal texts, which is seen wanting in Article 184(3) jurisprudence of the SC.

(Concluded)

The writer is a lawyer based in Islamabad. Email: sattar@post.harvard.edu
Price-fixing fixation - Babar Sattar
 
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If political questions are allowed to fester long enough they transform themselves into legal questions. In a polity where the system of governance crumbles, proliferation of legal disputes is natural. And courts can’t be faulted for adjudicating legal disputes brought before them merely because they emerged from political questions. It is indisputable that the Supreme Court has the final word in declaring rights and obligations of citizens and the state. It is also indisputable that the SC has the final word in interpreting the constitution. But the fact that the SC is the ultimate arbiter of disputes and interpreter of the law does not mean it doesn’t get things wrong.

Critiquing the SC’s rulings neither amounts to questioning the validity nor the authority of the court. But just because rulings of the apex courts are binding doesn’t mean they are right. And just because the judiciary is vested with constitutional authority doesn’t mean it is being discharged unerringly. The law being developed and the manner in which the judiciary approaches its constitutional mandate are matters of public importance that must be debated vigorously since it affects all of us.

Very very wise words.

Excellently said Mr Babbar Sattar.:tup:
 
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Pakistan produces first indigenous wind turbine - thenews.com.pk

KARACHI: SZABIST has installed indigenously designed and locally fabricated first wind turbine of 6KVA at its Gharo Research Centre, according to an announcement on Friday.

“The turbine was fabricated in Pakistan by using almost 85 percent local components,” said Dr. Imran Amin, head of the project. “It costs around Rs1.2 million, which included fixed cost of the first produce.”

Dr Amin refused to give the cost estimates as the price has not been as yet. He, however, compared that one megawatt foreign made wind turbine cost $1 million, two megawatts $1.8-2 million and three megawatts wind turbine cost around $2.7 million.

One megawatt is equal to 1,000KVA.

The higher cost of wind turbine remained no more a hurdle in the way of wind power production in the world but its availability has come into question now, he said. “International producers of wind turbines are delivering a plant of 1.5-2MW in three years time from the date of booking.”

The local production of such technology would help Pakistan tap the available huge potential of 50,000MW through wind turbines. “Pakistan can produce up to 110,000MW wind power,” according to the estimates of world renowned agencies.

The wind turbine of 6KVA was designed and fabricated by the Centre for Renewable Energy Research (CRER) and headed by Dr Imran Amin and his team of engineers and technicians of SZABIST Karachi.

“The design of the wind turbine meets all the international standards and has been using the modern technologies available,” said Amin.

The composite blade design of a wind turbine is superior to most wind turbines available in the market and is also low cost. They were made of aerodynamics design and tested for around 30 months before installation.”
 
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Tight Gas production

First ever Tight Gas Sale Purchase Agreement by Polskie Gornictwo Naftowe i Gazownictwo (PGNiG), Pakistan Petroleum Limited (PPL) and Sui Southern Gas Company Limited (SSGCL) was signed on Tuesday.

The Kirthar Joint Venture, operated by PGNiG with PPL as its partner, is going to be the first production from a Tight Gas Reservoir in the petroleum history of Pakistan.

The agreement was signed in the presence of Dr. Asim Hussain Advisor to the Prime Minister on Petroleum and Natural Resources and Dr. Waqar Masood Secretary Ministry of Petroleum and Natural Resources.

Waldemar Woiciech Bak, Managing Director (MD) of PGNiG SA Pakistan Branch welcomed the Advisor Ministry of Petroleum Natural Resources, Secretary Petroleum, Managing Director SSGCL and his team for gracing this occasion.

Managing Director of PGNiG hoped that this was going to be the beginning of a new era of unconventional gas development and production in Pakistan.

Speaking on the occasion, Dr. Asim Hussain Advisor to the Prime Minister on Petroleum reiterated that the agreement was a significant step in the implementation of Pakistan’s Tight Gas Policy announced in 2011 for providing economically viable sources of energy.

He stressed that the Government of Pakistan has introduced incentives and investor friendly policies for boosting investment in the Oil and Gas sector for substantially bridging the Demand and Supply of Natural Gas gap.

He hoped that timely completion of Rehman project will increase the gas supply significantly. He assured POL’s full support in this endeavor.

MD SSGCL, Zuhair Siddiqui, appreciated JV partners for leading the industry in unconventional gas production and hoped that they will be bringing in more gas to the system in near future.

An agreement between PGNiG and SSGCL for construction / laying of 52 kms pipeline from PGNIG Rehman Field to Naing Value Assembly of SSGCL, District Dadu, Sindh was also signed on the occasion. SSGCL was awarded the contract for laying pipeline after a competitive tendering process.

The pipeline laying project is likely to be completed by April, 2013.
Gas sale-purchase agreement of Tight Gas production signed | DAWN.COM
 
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Diamer-Bhasha Dam: Wapda implementing master plan

Pakistan Water and Power Development Authority (Wapda) is implementing a master plan for optimal utilisation of the indigenous water and hydropower resources to supplement water for irrigated agriculture and add a good quantum of low cost hydel electricity to the national grid.

Wapda Chairman Raghib Shah expressed these views while addressing a delegation of the 26th Air War Course of Pakistan Air Force War College, Karachi here at Wapda House on Thursday. The delegation was led by Air Commodore Nadeem Shujaat Khan. Speaking on the occasion, the Chairman said that a number of water and hydropower projects with cumulative water storage capacity of 12 million acre feet and power generation capacity of about 20,000 megawatt (MW) were under various stages of implementation (ie from construction to detailed engineering design).

Besides adding 400 MW electricity to the system from the end of 2012 to the mid 2013, Wapda also plans to add 5,000 MW within next five years and another 14,000 MW by 2020 provided funds are made available for the purpose. This addition will be made through under-construction 969 MW-Neelum Jhelum and 106 MW-Golen Gol, 4,500 MW-Diamer Basha Dam, 1,410 MW-Tarbela fourth Extension, 4,320 MW Dasu, Mangla Upgradation Project, 7,100 MW Bunji, 740 MW-Munda, 84 MW-Kurram Tangi Dam, etc, he added.

Responding to a question, the Chairman said the government was implementing multi-purpose Diamer Basha Dam as a priority project, because it would not only provide water for agriculture and help control floods but also generate low-cost hydel electricity. At present, the process to acquire land both in Gilgit Baltistan and Khyber Pakhtunkhwa is continuing, while the work on 14 local contracts is in full swing for construction of model villages for affectees, Wapda offices and colonies, contractor's camps, road, etc in the project area.

Expression of Interest (EoI) had also been called for consultancy of the project, he further said. The Chairman also informed the delegation that the World Bank had shown interest to provide funds for Dasu Hydropower Project following completion of its detailed engineering designs in March 2013.

Wapda learning from the past is actively perusing different options to arrange funds for its projects. Responding to another question regarding impact of climate change on water flows, Shah apprised the delegation that Wapda was setting up glacier monitoring system in high ranges of the glaciers for the purpose with support of the WB and other financial institutions and donor agencies. The delegation was further informed that a glacier monitoring system was already functioning in the low glacial ranges and providing useful data in this regard.

Diamer-Bhasha Dam: Wapda implementing master plan | Business Recorder
 
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Argentina to support development of CNG sector: envoy

Ambassador of Argentina Rodolfo Martin Saravia has said that Argentina was ready to support Pakistan in development of Compressed Natural Gas (CNG) sector. He stated this during a meeting with the members and office-bearers of Sarhad Chamber of Commerce and Industry here on Thursday. Chamber's President Dr Mohammad Yousaf Sarwar, Vice Presidents Malik Ifitkhar Awan, Mohamamd Anees, and executive body members were also present.

Both sides agreed to take joint steps for provision of clean drinking water in flood-hit areas of Khyber Pakhtunkhwa and to further strengthen trade and economic ties between the two countries. The envoy said that huge investment opportunities existed in Pakistan particularly in hydel power generation and tourism sectors of Khyber Pakhtunkhwa.

He said that Argentina would carry out joint ventures with Pakistan in agriculture, renewable energy, pharmaceutical, textile, CNG buses, surgical goods, marble and other potential sectors. The Ambassador agreed with the chamber's proposals and suggestions for boosting trade and economic relations between Pakistan and Argentina.

He assured that his country would extend every possible support to Sarhad Chamber for provision of clean drinking water to the flood-affected people of KP. Earlier, the chamber's chief asked the Argentina businesspeople to invest in hydel energy sector. He stressed the need for further strengthening economic and trade ties by easing visa regime between the two countries.

Argentina to support development of CNG sector: envoy | Business Recorder
 
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Norway for investment in Pak energy sector

LAHORE: Norwegian Ambassador to Pakistan Cecilie Landsverk has said that Pakistan is on the priority list of Norway with special focus on trade and investment and energy.

The ambassador was talking to Lahore Chamber of Commerce and Industry (LCCI) President Farooq Iftikhar here at the LCCI on Friday. LCCI Senior Vice President Irfan Iqbal Sheikh, Vice President Mian Abuzar Shad, former Presidents Bashir A Baksh, Mian Misbahur Rehman, former senior vice president Tahir Javaid Malik, former vice president Saeeda Nazar and executive committee members also spoke on the occasion.

The ambassador said that since a second recession has hit Europe in recent years therefore there is a widespread understanding that Asia is the future of the world and many countries are fast developing their relations with Asia.

She said that Pakistan is very close to the hearts of the Norwegians as a large number of Pakistanis are residing in Norway and contributing to our welfare. The Ambassador said that Norway has good expertise in hydropower and it is ready to extend cooperation but an active engagement of authorities is absolutely necessary in this area of mutual interest. She said that Pakistan has fantastic potential, it can generate huge electricity through its hydropower resources to tackle energy shortfall.

Hydropower is the best way to bridge the gap between electricity generation and consumption which will improve the ratio of low-cost electricity in the system to stabilise the tariff, said Cecilie Landsverk.

She said that Norwegian investors are also interested in promising onshore and offshore gas sectors of Pakistan. Ms Landsverk advised Pakistani business community to focus on food chains and quality goods if it is interested in doing business in Norway. There exists great business possibilities but perception in West about Pakistan is not improving since last few years, which is blocking investment, she added. International business community is more concerned than they should be, she underlined.

The ambassador said that there is a need to make more concerted and sector-specific efforts to enhance economic cooperation between the two countries and Norway is ready to take all steps to expand its ties with Pakistan for socio-economic development of the country.

Speaking on the occasion, the LCCI president said that bilateral trade data reveals that both Norway and Pakistan have to raise their level of economic cooperation. He said that the current level of trade between the two countries is at the minimal level and has not made any significant headway over the last couple of years.

The LCCI president said that though the balance of trade is in favour of Pakistan but the volume of bilateral trade is required to be boosted up which reached just at $72.3 million in 2011. He hoped that direct interaction between the business communities of two countries can make it possible to cause quantum jump in trade figures.

Iftikhar said that Pakistan offers great opportunities to Norwegian investors to invest in areas such as energy, pharmaceuticals, oil and gas, food processing, pulp and paper products, chemicals, petroleum and petroleum products etc.

He said that in the last three months, the outflow of Norwegian investors in Pakistan was registered to be way more than inflow. He urged the ambassador to play some role in this regard. There is immense investment potential available in all sectors of economy. The LCCI president said that businesses community of the two countries should keep on exploring the opportunities of mutual interest. Business delegations composed of sector-specific participants or product-specific group of entrepreneurs should be organised on regular basis.

Pakistan’s exports to Norway include articles of apparel and clothing, leather garments, woven cotton fabrics, rice, sports goods and hosiery items etc. Pakistan’s imports from Norway comprise polymers of ethylene, antibiotics, ferrous waste and scrap, re-melting scrap ingots, refined copper and copper alloys, aluminum waste and scrap and natural polymers etc.

Daily Times - Leading News Resource of Pakistan
 
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