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Energy shortages, limited external demand and structural bottlenecks all constrained industrial growth

  Industrialization is regarded essential for rapid development of the country while the nations, which gave weight to rapid development to industry achieved high rates of development. Pakistan at the time of partition in 1947 had negligible industrial base. Since the division of the sub-continent, the Government of Pakistan has been utilizing all available resources domestic as well as external for rapid development of the manufacturing sector. Pakistan has now …

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China’s huge investment in coal-based power generation projects

  The landmark economic package of China is a depiction of the confidence of China and Pakistan and the deep love for a large number of people of Pakistan. The projects are part of a broad bilateral deal called as China-Pakistan Economic Corridor (CPEC) under which the Chinese government and banks will finance Chinese companies to invest $45.6 billion worth of energy and infrastructure projects in Pakistan over the next …

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Repercussion of lower oil prices

  The oil industry with its past history of huge profitability is in the downswing. Earnings are at present in a lower position for companies that have made landmark profits in recent years, pushing them to retire more than half their rigs and abruptly cut investments in exploration and production. About 100,000 oil workers have lost their jobs, and manufacturing of drilling and production equipment has fallen drastically. The oil …

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Falling oil prices: who are the true beneficiaries?

  Oil price in the international market has slumped from around $100 per barrel to below $45 in the past one year. But in Pakistan, the governments generally do not provide the genuine relief to the masses after only reducing fuel prices marginally in the domestic market. A common man will only become the beneficiary of falling oil prices in the global market if the government and the oil and …

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Mainstreaming of renewable energy vital to beat country’s power shortfall

  Renewable energy must be a important part of Pakistan’s energy plan In the face of critical energy crisis, Pakistan needs to explore renewable energy avenues to improve its power supply. So far renewable energy is not important part of Pakistan’s energy plan. As per estimates, the country loses up to 3-percent of its GDP per annum are because of power shortages. Despite enormous potential, Pakistan cannot explore avenues of …

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The government, banks must jump on to financing the solar projects

  Solar energy is forecasted to become a new source of power to lead the world to a low-carbon future and expectedly, away from a global climate catastrophe. For solar energy to become very cheap that it can compete with coal and oil, its deployments need to be greatly developed. Solar power can meet wholly the world demand of electricity. It has the capability to provide several times the country’s …

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Iran’s nuclear deal not helpful for Pakistan gas pipeline

  Iran and a group of 6-states led through the US reached a historic agreement on July 14, 2015 considerably limit Tehran’s nuclear ability for greater than a decade in return for lifting global oil and monetary sanctions. The agreement culminates 20-month of negotiations on a deal that US President B. Obama had long sought as the greatest diplomatic attainment of his government. Whether it portends a fresh relationship between …

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Impact of low oil prices on Pakistan’s economy may resolve energy crisis

  Almost 40 percent of the world oil supply and price is controlled by the largest cartel in the world i.e. OPEC. Being an export commodity, GDP of exporting nations is defined through the price of oil, subsequently budgets and expeditions are finalized. It is in vested interest of OPEC nations to keep oil prices high. There have been numerous instances where OPEC has commented on price trends and claimed …

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Iran’s nuclear deal to benefit Pakistan macros

  Lifting of sanctions to formalize $3-4 billion informal trade between Pakistan and Iran The historic deal between Iran and P5+1 promises an end to multiplier sanctions imposed by USA, UN and EU since the start of Iran’s nuclear program, likely to bring manifold impact on Pakistan’s overall economy. This historic development, which is most important for Pakistan and other countries in the region will have a positive impact on …

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HBL-NBP ready to finance Rs84 billion for Sheikhupura power plant

  The first-ever biggest financing of local banks in the history of Pakistan Presidents of Habib Bank Limited (HBL) and National Bank of Pakistan (NBP) in a meeting with Chief Minister Punjab Muhammad Shahbaz Sharif presented an offer to countersign the project financing amounting to Rs84 billion to set up 1,200 megawatts LNG-based power plant at Bhikki Sheikhupura, which would be the first of its kind project and the biggest …

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