Economic growth and development
By Hashim Abro  

In today's world energy is considered 'sine qua non' for socio-economic development of any country. Its production is regarded an important yardstick for the measurement of economic growth and development of a country. Regrettably, our per capita energy consumption remains low. Pakistan’s energy needs are on the rise. With over 180 million people, coupled with our GDP growth recorded 6.9 per cent in 2006 and 6.4 per cent in 2007, it is inevitable that there will be a higher demand for energy in the country in the coming years.

The biggest challenge for the PPP-led government and that also for the entire nation is to meet the energy requirements of all segments of our population in an efficient, reliable and affordable manner while being sensitive to the importance of environmental protection. Indeed, this calls for an integrated strategy with proper energy mix and excellent energy management. As regards the oil and gas sector, it is imperative that the interests of the common man and our national oil companies have to be balanced, in a manner which is in the overall interest of the country. It is a fact that Pakistan has a large population which is presently not having access to electricity and gas, and therefore solely dependent on kerosene for their lighting and cooking purposes. The government has ensured that these vulnerable sections of society are supplied kerosene at a highly subsidised rate as diesel remains the backbone fuel of our industry. Nearly 19 per cent of the diesel consumption is in the agriculture sector, on which depends the country's food security. Most significantly, it is used in the transport sector as well as for several industrial uses. The government on its part has kept the prices of diesel well below the market price so that the agriculture and transport sectors are not adversely affected by the unprecedented high crude oil prices, which we witnessed during the preceding one and a half years in the international market.

Natural gas is now being regarded as the fuel of the 21st century. Globally, natural gas is fast replacing liquid fuels owing to its economical and ecological advantages, besides its increased availability. With expected increased availability of natural gas in the country, our efforts would be to shift a larger portion of public transport to gas, in addition to catering to the requirements of many gas users. In the last 8 months or so, we have witnessed extreme volatility in international crude oil prices. This volatility has impacted global economics including Pakistan.

Given the country's growing energy needs, we need to tap all possible sources. However, it may not be possible to shift our economy to alternate sources of energy quickly, as the renewable energy sources still form a relatively small base in the country. By all accounts available, oil and natural gas will remain indispensable in the foreseeable future.

To realise the goal of sustainable energy security, the government needs to take ample steps. These include: efforts to improve our energy efficiency in transportation, residential, commercial and industrial uses. Investment in energy efficiency, in due course, results in an economic win-win proposition for all. The widespread adoption of currently available best practices towards improving energy efficiency is the most significant short-term action the government can take to mitigate the rise in greenhouse gases. In the transport sector, developing and commercialising technologies that allow conventional fossil fuels to be used more efficiently should be our focus. That would provide us many more useful insights and suggestions to reach our goal, for the common benefit of our people.

Sindh has now strongly protested because its natural resources are being forfeited or privatised. It is rich in agriculture, has deposits of oil, coal and gas, and a well-developed port. It is the most industrialised region in the neighbourhood. Shorn of the huge subsidy claimed by Punjab and its military, Sindh is likely to see rapid economic growth. Sindhis have an ancient mercantile tradition, and their emphasis on pragmatism, tolerance and harmony are all useful attributes in a modern economy. Sindh has more oil and gas reserves than the rest of three provinces together. According to recent statistics there are 96 reserves of crude oil in the country of which 69 are located in Sindh, 23 in Punjab, three in the NWFP and one in Balochistan, making Sindh major oil producer with a share of 56 per cent of total production.

Similarly, Sindh is in a better position in gas production as out of 140 reservoirs of gas 107 productive reservoirs are in Sindh, 22 in Punjab, 4 in the NWFP and 7 in Balochistan, and Sindh is producing 71.01 per cent of total gas produce. This is the reason that the national and multinational companies are investing more and more in Sindh and accordingly the province was paying more taxes to the federation. Even the exploration companies in this regard have not only to fulfill their obligations under the Environment Protection Act 1997 but also the international social responsibilities. Under the law, the companies are legally bound to spend $25,000 at the outset and raise it up to $500,000 phase-wise on the welfare of local people. In addition, the companies have to pay 12.5 per cent royalty to the government as well as production bonus, which also has to be spent on the development of the concerned areas. Regrettably, this has not happened so far. Oil and gas exploration and its production is on in the province of Sindh but Sindhis are meted out step-motherly treatment, neither they are employed nor attention is given to the development of exploration area, Sindh's resources are being privatised, hence, Sindh is all protest and that does not augur well both for the present government and the country it self.