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7 Bahria University Islamabad CURRENT BUSINESS AFFAIRS PROJECT Energy crisis and its impact on agriculture sector of pakistan Submitted to sir anjum qureshi Submitted by kashaf a. khan afia najam hina aftab fahim bangash salma viqar mba- iii (D) Contents Power sector of Pakistan1 General1 Main Electric Power Producers in Pakistan3 1)Water and Power Development Authority (WAPDA)3 2)Karachi Electric Supply Company (KESC)4 3)Pakistan Atomic Energy Commission (PAEC)5 4)Independent Power Producers (IPPs)6 Electricity Generation7 1)Hydel Generation:8 2)Thermal Generation9 )Nuclear Power Generation10 4)Alternative / Renewable Energy:10 Import of Electricity11 Demand and supply of electricity11 Energy crisis12 Energy crisis and Pakistan:12 Intensity of existing power crisis13 Effects on People15 Agriculture sector of Pakistan16 Agricultural sector of Pakistan16 Land use16 Cropping patterns and production17 Contribution to economy – 2008-0918 Fisheries & Livestock production18 Non-comprehensive policies of pakistan19 Impact of energy crisis on the agriculture sector of Pakistan20 Acute shortage of water20 Electricity Outages21 Wheat shortages22

Food Security22 Fertilizer production23 Other problems24 Recommendations25 References31 power sector of pakistan General Pakistan having about 30% standby electricity few years back in 2003-04, has been facing a severe power crisis for the last three years. The present crisis is considered to be the worst of four such crises that Pakistan has been facing since 1974. Due to a fast growing demand, high system losses and seasonal reduction in the availability of hydropower, the gap between the demand and supply of electricity is resulting in routine load shedding.

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Inadequate power generation capacity is just one of the factors affecting power supply. The average short fall in the supply demand gap is between 3500-4000 MW. The continuing shortage of electric power in the country is adversely affecting the national economy. Industrial productivity has gone down and the situation threatens badly the export performance and the ensuing balance of payments besides creating social as well as law and order problems in the country. Main Electric Power Producers in Pakistan

The main electric power producers in Pakistan are Water and Power Development Authority (WAPDA), Karachi Electricity Supply Company (KESC) and Pakistan Atomic Energy Commission (PAEC, the operator of the two nuclear power plants). Besides these three main power producers, a number of independent power producers (IPPs) established since 1994 are also contributing significantly to the electricity sector of the country. Water and Power Development Authority (WAPDA) WAPDA www. wapda. gov. k the Pakistan Water and Power Development Authority, was created in 1958 as a semi-autonomous body for the purpose of coordinating and giving a unified direction to the development of schemes in water and power sectors, which were previously being dealt with, by the respective electricity and irrigation department of the provinces. Since October 2007, WAPDA has been bifurcated into two distinct entities i. e. WAPDA and Pakistan Electric Power Company (PEPCO) www. pepco. gov. pk .

WAPDA is responsible for water and hydropower development whereas PEPCO is responsible for the management of all the affairs of WAPDA’s fourteen public limited companies in the areas of thermal power generation, transmission, distribution and billing. Karachi Electric Supply Company (KESC) The Karachi Electric Supply Company Limited www. kesc. com. pk was incorporated on 13th September 1913 under the Indian Companies Act, 1882 as amended to date vide the Companies Ordinance 1984. The company is listed on Karachi, Lahore and Islamabad stock exchanges.

The Government of Pakistan took control of the company by acquiring majority shareholding in 1952. The Ministry of Water and Power looks after the affairs of the company at federal level. The company has been privatized in November 2005 with the transfer of 73% shares of the Government of Pakistan along with Management Control to the new owner viz M/s KES Power & others. KESC is principally engaged in generation, transmission and distribution of electric energy to industrial, commercial, agricultural and residential consumers under the Electricity Act, 1910 as amended to date & NEPRA Act 1997, to its licensed areas.

The licensed area of KESC is spread over entire Karachi and its suburbs up to Dhabeji and Gharo in Sindh and over Hub, Uthal, Vindhar and Bela in Baluchistan. The total area covered is around 6000 square kilometers and a population of 12–14 million. The company owns 1,756 MW of generation capacity (oil- and gas-fired), of which 1,534 MW is operational. The approximate demand for power in the city is at least 2300 MW. To meet the supply-demand gap, KESC purchases power from WAPDA, Independent Power Producers (IPPs) and KANUPP.

Whenever any of these outside entities fail to provide power or there is a breakdown in KESC’s own installed generation base, the company has to restore the load shedding. The new management has employed Siemens Pakistan Engineering Limited as the Operations and Management (O&M) contractor for the operation and management of the company. Siemens is in the process of updating and modernizing the infrastructure and operations of the company. Pakistan Atomic Energy Commission (PAEC) PAEC ( www. paec. gov. pk ) is the operator of the existing two nuclear power plants in Pakistan.

Karachi Nuclear Power Plant (KANUPP), the first nuclear power plant of the country was commissioned in 1971 in Karachi through a turn-key agreement with Canadian General Electric Company. The second Chashma Nuclear Power Plant-1 (CHASNUPP-I), was commissioned in the year 2000 also through a turn key agreement with China National Nuclear Corporation. After successful experience of KANUPP and CHASNUPP-I, the Government of Pakistan has entered into another contract with China for construction of the second unit CHASNUPP-II.

The construction of the unit is in progress and it is expected that the unit will be commissioned by the year 2011. The total installed capacity of the two nuclear power plants in the country is 462 MW. Karachi Nuclear Power Plant (KANUPP): KANUPP, Karachi is a single unit CANDU PHWR with a total gross capacity of 137 Mega Watts. It is located at Paradise Point on the arid Arabian Sea Coast, about 15 miles to the west of Karachi. It has been in commercial operation since 1972. KANUPP is part of Karachi Nuclear Power Complex (KNPC) and is owned and operated by Pakistan Atomic Energy Commission (PAEC).

Chashma Nuclear Power Plant-1 (CHASNUPP-1): The Chashma Nuclear Power Plant Unit-1 (CHASNUPP-1) has been in commercial operation since September 2000. The construction of Chashma Nuclear Power Project Unit-2 (CHASNUPP-2) has just started in 2005. CHASNUPP-1 is a two-loop PWR plant with gross output of 325 MWe & net output of 300 MWe and life span of 40 years. The Plant is located in the province of Punjab near Chashma Barrage on the left bank of River Indus, 32 kms south of Mianwali City, 280 kms south-west of Islamabad and 1160 kms North-East of Karachi. Independent Power Producers (IPPs)

At present following IPPs are operating in Pakistan while a number of projects are under construction. The gross power generation capacity of the IPPs is 5,822 MW. KAPCO and HUBCO are the two largest companies among IPPs with a production of 1,466 MW and 1,292 MW respectively. |S. no. |Project name |Gross capacity in MW | |1 |Uch Power Limited |586. 00 | |2 |TNB Liberty Power Project |235. 0 | |3 |Tapal Energy Limited |126. 00 | |4 |Southern Electric Power Company Limited |117. 00 | |5 |Saba Power Company Limited |134. 00 | |6 |Rousch (Pakistan) Power Limited |450. 0 | |7 |Kohinoor Energy Limited |131. 00 | |8 |Kot Addu Power Company Limited (KAPCO) |1466. 00 | |9 |Japan Power Generation (Pvt) Limited |136. 00 | |10 |Hub Power Company HUBCO |1292. 0 | |11 |Habibullah Coastal Power (Pvt) Co. |129. 00 | |12 |Gul Ahmed Energy Ltd. (GAEL) |136. 00 | |13 |Fauji Kabirwala Power Company |157. 17 | |14 |Altern Energy Limited (29 MW, plant shut-down) |- | |15 |AES Pak Gen. (Pvt) Limited |365. 0 | |16 |AES Lalpir Limited |362. 00 | |Total |5822. 00 | Electricity Generation The electricity generation sector in Pakistan is a mixed industry of hydro, thermal and nuclear power plants. About 33. 3 percent power is generated through hydel system, 64. 13 percent through thermal system and the rest 2. 57 percent is generated through nuclear and renewable power generation systems.

The country meets its energy requirement around 41% by indigenous gas, 19% by oil, and 37% by hydro electricity. Coal and nuclear contribution to energy supply is limited to 0. 16% and 2. 84% respectively with a vast potential for growth. [pic] Installed electricity generation capacity |(as on June 30’ 2008) TYPE |MW |% | |Hydel – WAPDA |6480 |33. 0 | |Thermal – WAPDA |4900 |25. 20 | |Thermal KESC |1,756 |9. 02 | |Thermal IPPs |5,822 |29. 1 | |Nuclear |462 |2. 37 | |Others (renewable) |- |0. 20 | |Total |19,420 |100. 00 | Source: Pakistan Energy Book 2008 (HDIP) [pic] Electricity generation, import and supply in GWh as on June 30’ 2008) |(as on June 30’ 2008) Total electricity generation |95,661 | |Import |199 | |Total electricity supply |95,860 |

Source: Pakistan Energy Book 2008 (HDIP) Hydel Generation As a consequence of partition of the Indo-Pakistan Sub-Continent in 1947, India and Pakistan became two independent sovereign states. Hydel generation capacity of only 10. 7 MW (9. 6 MW – Malakand Power Station & 1. 1 MW – Renala Power Station) existed in the territory of Pakistan.

With the passage of time, new hydel power projects of small and medium capacities were commissioned including the first water storage dam and power house at Warsak due to which country’s hydel capability rose to about 267 MW up till 1963. In the year 1967 & 1977, Mangla Dam on Jhelum River and Tarbela Dam on Indus River having the provision of power generation were commissioned respectively. However, their capacities were subsequently extended in different phases.

The total capacity of existing 13 hydel stations as of today is 6,480 MW including 36 MW hydel generation of AJKHEB. During the year 2007-2008, aggregate energy sharing of the hydel power plants was 33. 30%. |Power stations |June 30’ 2008 | | |MW | |1.

HYDEL – WAPDA | |Tarbela |3,478 | |Ghazi Barotha |1,450 | |Mangla |1,000 | |Warsak |243 | |Chashma |184 | |Malakand (Decommissioned due to fire incident in November 2006) |- | |Dargai |20 | |Rasul |22 | |Shadiwal |14 | |Chichoki Mallian |13 | |Nandipur |14 | |Kurram Garhi |4 | |Renala |1 | |Chitral |1 | |2. HYDEL – Azad Jammu & Kashmir Hydro Electric Board (AJKHEB) | Jagran |30 | |Leepa |- | |Others |6 | |Total of 1 & 2 |6,480 | Source: Pakistan Energy Book 2008 (HDIP) Thermal Generation Bulk of Pakistan’s power generation is based on thermal resources mainly furnace oil and natural gas as fuel; coal is almost non-existent. The total installed capacity of thermal power plants in the country as on June 30’ 2008 was 12,478 MW. As per Energy Yearbook 2008, share of thermal power generation during 2007-08 was recorded at 64. 13 percent. Break-up of thermal generation capacity (MW) Power stations |June 30’ 2008 | |1, WAPDA | |Gas Turbine Power Station (GTPS) Shahdra |59 | |Steam Power Station (SPS) Faisalabad |132 | |Gas Turbine Power Station (GTPS) Faisalabad |244 | |Natural Gas Power Station (NGPS) Multan |195 | |Thermal Power Station (TPS) Muzaffar Garh |1,350 | |Thermal Power Station (TPS) Guddu |1,655 | |Gas Turbine Power Station (GTPS) Kotri |174 | |Thermal Power Station (TPS) Jamshoro |850 |FBC Lakhra |150 | |Thermal Power Station (TPS) Quetta |35 | |Gas Turbine Power Station (GTPS) Panjgur |39 | |Thermal Power Station (TPS) Pasni |17 | |2, KESC | |Thermal Power Station (TPS) Korangi |316 | |Gas Turbine Power Station (GTPS) Korangi town |80 | |Gas Turbine Power Station (GTPS) Site |100 | |Thermal Power Station (TPS) Bin Qasim |1,260 | |3, IPPs |5,822 | |Total MW (1, 2 & 3) |12,478 | Source: Pakistan Energy Book 2008 (HDIP) Nuclear Power Generation The share of nuclear power in the total power generation capacity of Pakistan is just 2. 37 percent. At present, only two nuclear power plants are established in Pakistan with a total generation capacity of 462 MW. The third nuclear power plant is under construction. Break-up of nuclear generation capacity (MW) Power stations |June 30’ 2008 | |Karachi Nuclear Power Plant (KANUPP) |137 | |Chashma Nuclear Power Plant-I (CHASNUPP-I) |325 | |Total MW |462 | Source: Pakistan Energy Book 2008 (HDIP) [pic] Alternative / Renewable Energy: Pakistan has abundant available and inexhaustible renewable energy (RE) resources, which if tapped effectively can play a considerable role in contributing towards energy security and energy independence of the country. In May 2003, Alternative Energy Development Board – AEDB ( www. aedb. org ) was established to act as a central agency for development, promotion and facilitation of renewable energy technologies, formulation of plans, policies and development of technological base for manufacturing of renewable energy equipment in Pakistan.

The Government of Pakistan has tasked the AEDB to ensure 5% of total national power generation capacity to be generated through renewable energy technologies by the year 2030. In addition, under the remote village electrification program, AEDB has been directed to electrify 7,874 remote villages in Sindh and Balochistan provinces through renewable energy technologies. At present, total Renewable Energy produced in the country accounts at 40MW which is about 0. 21% of total installed generation capacity of all sorts. The investment potential for the renewable energy sector of the country from short to medium term is over USD 16 billion dollars. Renewable energy potential in Pakistan |Wind |0. 346 Million MW | |Solar |2. Million MW | |Bagasse Cogeneration |1,800 MW | |Waste to Power |500 MW | |Mini & Small Hydel |2,000 MW | Source: Alternative Energy Development Board (AEDB) Import of Electricity Since October 2002, Pakistan is importing electricity from Iran at three points of the province of Baluchistan; Mand interconnection 35 MW on 132 KV and 2 MW each at Tuftan and Mashkhel through 20 KV. Further, Pakistan has planned to import 1,100 MW of electricity from Iran for supply to Gwadar and other coastal areas of Baluchistan. Demand and supply of electricity According to the Ministry of Water and Power, the deficit of power for the years 2008-09 and 2009-10 is 4,025 MW and 5,529 MW respectively. Projection for demand and supply of |Year |Firm Supply (MW) |Peak Demand |Surplus/(Deficit) (MW) | |electricity (2008-2010) S. No. | | |(MW) | | |1 |2008-2009 |15,055 |19,080 |(4,025) | |2 |2009-2010 |15,055 |20,584 |(5,529) | Source: Ministry of Water and Power [1] energy crisis ‘Crisis’ has been coined by a Greek word which means ‘decisive moment’.

Crisis is declared when something has gone to a level where an action must be taken to avoid complete disaster or breakdown. ‘Energy Crisis’ happens due to several reasons, some of which are: misallocation of resources, incompetency of exploration sector, increasing price of oil in international market, power wastage, less dams, little deployment of unconventional energy resources, etc. Energy production of any country is the measure of its economy. No country can achieve high economic growth without producing sufficient energy. Production of energy reflects industrial output, agricultural output, transportation, etc. Electricity load shedding in Pakistan is alarming.

When energy supply of an industry is restricted, its output decreases and cost of production increases due to which many industries shut down leaving labor unemployed. The upsurge of inflation is due to energy shortage in Pakistan. Number of people living below poverty line is increasing due to unemployment and inflation, both of which are by-products of energy crisis. As the high production cost decreases rate of output, the exports of Pakistan are continuously declining. Our trade deficit is increasing which eventually will result in unstable economy Energy crisis and Pakistan: An energy crisis is any great shortfall (or price rise) in the supply of energy resources to an economy. It usually refers to the shortage of oil and additionally to electricity or other natural resources.

The crisis often has effects on the rest of the economy, with many recessions being caused by an energy crisis in some form. In particular, the production costs of electricity rise, which raises manufacturing costs. For the consumer, the price of gasoline (petrol) and diesel for cars and other vehicles rises, leading to reduced consumer confidence and spending, higher transportation costs and general price rising. Energy resources have depleted! Whatever resources are available are simply too expensive to buy or already acquired by countries which had planned and acted long time ago. Delayed efforts in the exploration sector have not been able to find sufficient amounts of energy resources.

Nations of the world which have their own reserves are not supplying energy resources anymore; only the old contracts made decades ago are active. Airplanes, trains, cars, motorbikes, buses and trucks, all modes of transportation are coming to a stand still. Many industries have closed due to insufficient power supply. Price of oil has gone above the ceiling. At domestic level, alternate methods like solar, biogas and other methods are being tried for mere survival. The above is a likely scenario of Pakistan and around the globe after 25 years. A pessimistic view, but realistic enough to think about and plan for the future. But are we doing anything about it?

Lets have a look at the current energy situation of Pakistan and the world. Pakistan’s economy is performing at a very high note with GDP growing at an exceptional rate, touching 8. 35% in 2004-05. In its history of 58 years, there has been only a few golden years where the economy grew above 7%. This year official expectations are that GDP growth rate will be around 6. 5 – 7. 0%. For the coming years, the government is targeting GDP growth rate above 6%. With economy growing at such a pace, the energy requirements are likely to increase with a similar rate. For 2004-05, Pakistan’s energy consumption touched 55. 5 MTOE (Million Tons of Oil Equivalent).

The energy consumption is expected to grow at double digit if the overall economy sustains the targeted GDP growth rate of 6% by the government. Pakistan’s energy requirements are expected to double in the next few years, and our energy requirements by 2015 is likely to cross 120MTOE. By 2030, the nation’s requirement will be 7 times the current requirement reaching 361MTOE. Pakistan’s energy requirements are fulfilled with more than 80% of energy resources through imports. On the other hand, international oil prices have not only broken all records but are touching new highs, with every news directly or indirectly affecting the black gold industry. Moreover, speculators all around the world expect oil prices to touch $100 per barrel in medium term.

With concerns over Iran’s nuclear program, terrorist issues in Nigeria and high economic growth in China & India and their ever rising energy requirements, oil prices don’t see any another way but to shoot upwards. INTENSITY OF EXISTING POWER CRISIS Pakistan is experiencing the power shortages despite its miserly electricity use with per capita consumption of 546-kilowatt hours per year, a fifth of the global average of 2,586-kilowatt hours, according to statistics from the South Asia Association for Regional Cooperation. Also the fact that electrical power shortages are so sever in Pakistan where only approximately forty-six percent of the population has access to it.

Pakistan’s electricity production was nearly 3,000 Mega Watts (MW) short of demand in March. The authorities (see Appendix ‘A’) tried to make up the difference by turning off lights, and everything else, for several hours a day. The electricity shortfall has hit the record level of 7,075 MW in July owing to the forced shutdown of many units of power generation plants following the severe fuel scarcity. This power shortage crisis is likely to continue for several years even if the steps are taken to reduce it on war-footing basis. Below mentioned data show that the gap between demand and supply of electrical power will increase in the future. year |Power Generation |Power Consumption |Power Deficit | | |(Projected) |(Projected) | | |2009 |15,032 MW |18,715 MW |3,683 MW | |2010 |17,378 MW |20,345 MW |2,977 MW | |2011 |18,831 MW |22,116 MW |3,285 MW | |2012 |22,898 MW |24,041 MW |1,143 MW | |2013 |23,311 MW |26,133 MW |2,822 MW | |2014 |24,022 MW |28,408 MW |4,386 MW | |2015 |25,433 MW |30,881 MW |5,448 MW | Source: Pakistan Energy Year Book 2007 Effects on People

In addition to different sectors being affected by the energy crisis, people in general are also affected throughout the country. The household sector been the largest consumer of electricity accounting for 44. 2 per cent of total electricity consumption this crisis has literally paralyzed the cities and villages and made life hell for the citizens. As a result, the households which are connected to the grid are going without electricity at average six hours of outages that are occurring per day this month. The daily load shedding was at first unscheduled, which increased the disruption and negative effects. Crowds protested in the streets of all major cities due to the discontent caused by the power cuts.

Police have also reported increased crime during the blackouts in bigger cities. agriculture sector of pakistan Agricultural sector of pakistan Pakistan has an Agri-based economy with a very well developed agriculture sector and most of the labor engaged in the Agriculture Sector. Pakistan has an agriculture base of more then 79. 6 Mn Hectares of total area with 22 Mn Hectares land under cultivation. 18 Mn Hectares of land is under cultivation through irrigation system while 4 Mn Hectares of land relies its cultivation exclusively on rain. • Strong Potential • Contribution to Economy • Fisheries & Livestock Production • Investment Opportunities • Fiscal Incentives for Agriculture Sector

In FY 1993, agriculture, and small-scale forestry and fishing, contributed 25 percent of GDP and employed 48 percent of the labor force. Agricultural products, especially cotton yarn, cotton cloth, raw cotton, and rice, are important exports. Although there is agricultural activity in all areas of Pakistan, most crops are grown in the Indus River plain in Punjab and Sindh. Considerable development and expansion of output has occurred since the early 1960s; however, the country is still far from realizing the large potential yield that the well-irrigated and fertile soil from the Indus irrigation system could produce. [pic] Agricultural growth witnessed a recovery in FY07.

This was primarily due to a considerably improved performance of the cropping sub-sector, which overshadowed the impact of a moderation in the growth of the livestock sub-sector. The contribution of the remaining sub-sectors to overall agricultural growth was not material. Agriculture performed poorly in 2007-08, growing at 1. 5 percent against the target of 4. 8 percent. The poor performance of agriculture can be attributed to an equally poor performance of major crops and forestry, registering negative growth of 3. 0 percent and 8. 5 percent, respectively. LAND USE Pakistan’s total land area is about 803,940 square kilometers. About 48 million hectares, or 60 percent, is often classified as unusable for forestry or agriculture consists mostly of deserts, mountain slopes, and urban settlements.

Some authorities, however, include part of this area as agricultural land on the basis that it would support some livestock activity even though it is poor rangeland. Thus, estimates of grazing land vary widely–between 10 percent and 70 percent of the total area. A broad interpretation, for example, categorizes almost all of arid Baluchistan as rangeland for foraging livestock. Government officials listed only 3 million hectares, largely in the north, as forested in FY 1992. About 21. 9 million hectares were cultivated in FY 1992. Around 70 percent of the cropped area was in Punjab, followed by perhaps 20 percent in Sindh, less than 10 percent in the North-West Frontier Province, and only 1 percent in Baluchistan.

Since independence, the amount of cultivated land has increased by more than one-third. This expansion is largely the result of improvements in the irrigation system that makes water available to additional plots. Substantial amounts of farmland have been lost to urbanization and water logging, but losses are more than compensated for by additions of new land. In the early 1990s, more irrigation projects were needed to increase the area of cultivated land. The scant rainfall over most of the country makes about 80 percent of cropping dependent on irrigation. Fewer than 4 million hectares of land, largely in northern Punjab and the North-West Frontier Province, are totally dependent on rainfall.

An additional 2 million hectares of land are under non-irrigated cropping, such as plantings on floodplains as the water recedes. Non-irrigated farming generally gives low yields, and although the technology exists to boost production substantially, it is expensive to use and not always readily available. CROPPING PATTERNS AND PRODUCTION In the early 1990s, most crops were grown for food. Wheat is by far the most important crop in Pakistan and is the staple food for the majority of the population. It contributes 12. 7 percent to the value added in agriculture and 2. 6 percent to GDP. Area and production target of wheat for the year 2007- 08 were set at 8578 thousand hectares and 24 million tons, respectively.

Cotton is the important non-food cash crop and a significant source of foreign exchange earnings. Cotton accounts for 7. 5 percent of the value added in agriculture and about 1. 6 percent to GDP. The crop was sown on the area of 3054 thousand hectares. Rice is the third largest crop after wheat and cotton. Rice is highly valued cash crop and is also major export item. It accounts for 5. 5 percent of value added in agriculture and 1. 1 percent in GDP. Pakistan grows enough high quality rice to meet both domestic demand and for exports. Area and production target of rice for the year 2007-08 were set at 2594 thousand hectares and 5720 thousand tons, respectively. Other important food grains are millet, sorghum, corn, and barley.

Corn, although a minor crop, gradually increased in area and production after independence, partly at the expense of other minor food grains. Chickpeas, called gram in Pakistan, are the main non-grain food crop in area and production. A number of other foods, including fruits and vegetables, are also grown. Sugarcane is an important cash crop of Pakistan. It is mainly grown for sugar and sugar – related production. It is an important source of income and employment for the farming community of the country. It also forms essential item for industries. Other cash crops include tobacco and rapeseed. contribution to economy – 2008-09 • Contributes 26% to GDP • Employs 44% of labor force • 70% of exports are Agricultural & Agri-processed products Fisheries & Livestock production Fisheries potential (annual catch) |7. 5 Mn Tons | |Buffaloes (Number) |23 Mn | |Cattle (Number) |22 Mn | |Sheep & Goats (Number) |75 Mn | |Poultry (Number) |530 Mn | non-comprehensive policies of pakistan In 2010, 18 billion in budget was allocated for agricultural sector of Pakistan but the withdrawal of subsidy on pesticides and electricity on the conditions of IMF has done serious damage to this sector.

Whereas America and European Union are giving a huge amount of subsidy to their farmers and that is a greatest hurdle in the implementation of W. T. O rules. Additionally, price policy is very weak. In Punjab sugar cane is sold 200 Rs. per 40 kilograms. It was purchased and later on stocked by Industrialist in their stores. When Brazil bought sugarcane from International Market and prices become high, the Pakistan sugar mills owners projected demand of selling sugar at high prices, thus Pakistan faced sugar crisis. Then Pakistan had to import Sugar at high prices therefore, the prices of sugar went high in local markets. [2] impact of energy crisis on the agriculture sector of pakistan Agriculture and other sectors are suffering from the ongoing energy crisis.

Presently, the demand-supply gap in the energy sector has reached one of its highest in the country. This gap subsequently produced huge shortage of power that has adversely affected the economy. The crippling economy was further damaged when many industrial units had to be shut down, rendering thousands jobless. [3] According to The Nation “Unannounced load shedding is badly affecting the country’s agriculture sector particularly at the time when the sowing season of wheat, canola and other crops is beginning throughout the country, agriculturists said on Tuesday. ”[4] Acute shortage of water Water is very necessary for the survival of living things on earth. In

Pakistan we have highly effected due to the shortage of this blessing. Beside daily usage water is necessary for agriculture and for electricity production. For our agriculture we supply water by two means. I. Naturally II. Artificially The agriculture has been facing acute irrigation water shortages and the water intensive crops sugarcane and maize fell short of the target and depicted negative growth of 18. 5 percent and 7. 5 percent in 2008-09. However, other two major crops cotton and rice have registered positive growth of 7. 3 percent and 13. 5 percent, respectively. The combined weight of sugarcane and maize in overall agriculture is 6. 2 percent while that of cotton and rice is 13. 0 percent.

Also the acute shortage of water; the curtailed supply in eastern rivers by India; major consumption and wastage of water in irrigation and the decreasing capacity of Mangla and Terbela Dams due to sedimentation render the hydroelectric power generation equally problematic as the thermal power generation. Similarly, in the agricultural sector industries which avail more than seventy percent of total power, the outdated techniques and malpractices of consumption waste more than a third of the consumed power. [5] According to Business Recorder $, May, 2010 “Whereas the Sindh province is facing shortage of irrigation water for Kharif season, the provincial government has banned cultivation of rice crop in the command areas of different canals of the Indus River, it is learnt…… However, they can cultivate other crops such as phutti, sugarcane, etc. ” Sindh requires 160,000 cusecs of irrigation water for the Kharif season but the present water situation is alarming, which is expected to worsen in the coming season, they said. ”[6] “Country is facing severe water shortage following India stopped Pakistan’s water at River Chenab to fill the controversial Baglihar dam. Now load shedding is adding fuel to fire and destroying the agriculture sector because there are 200,000 electric tube wells in the country to irrigate the land, which could not be run due to electricity shortage, said Ibrahim Mughal Chairman Agri-Forum Pakistan. ” [7] Electricity Outages A worsening shortage of water, gas and electricity has created a serious energy crisis that could set back industry and agriculture.

Lack of electricity has dampened the efficient use of machineries, tube wells and manufacturing of major inputs such as fertilizers and pesticides. There have been some encouraging developments in water conservation regard with introduction of water conservation technologies which include High Efficiency Irrigation Systems (HEIS). High Efficiency Irrigation Systems (HEIS) refers to irrigation methodology which optimizes the use of water by allowing water to drip slowly in root zone of the plant through a network of pipes, valves, and emitting devices. It is an established methodology of increasing water productivity by avoiding seepage and evaporation losses.

It has been successfully demonstrated all over the globe, particularly in countries where water resources are scarce. However, due to lack of electricity the successful operation of HIES seems bleak. wheat shortages Like industry, agriculture is heavily dependent upon electricity and oil. Our crop production has failed to achieve its target and this failure led to the creation of another crisis, which is ‘Flour Crisis’. Increase in the prices, and availability of oil and natural gas directly affects transport. Expensive commercial transport further increases cost of a product which decreases ‘purchasing capacity’ of people, which means depreciation of national currency. Power outages are one of the factors of wheat shortage in the country.

Mills could not operate at capacity because of power cuts, which caused a rise in prices and long queues for purchasing the flour. Water supplies were also affected, as pumping and purification stations shut down. Another agriculturist Shamshad Ali said that the country is already facing severe food shortage and the dream of bumper wheat crop could come true under such circumstance when there is no electricity for the growers and diesel has become unaffordable. How can growers irrigate their crops to get bumper crop, he questioned? He further said that the growers are suffering due to 10 to 12 hours load shedding, which a severe is set back for the agricultural sector and the economy as well. [8] Food Security

A surge in international commodity prices during FY08 adversely impacted developing countries, many of which are net food importers with limited fiscal space to extend subsidies. The increase in commodity prices initially began from a sharp jump in crude oil prices. However, it quickly spread to food grains due to demand for bio-fuel, decline in output of some key staples in major producing countries, strong demand for agri produce and meat from emerging Asian economies with large population and consequent rising demand for animal feed. The rise in food commodity prices was significant and particularly developing countries faced economic and social crisis. The different policy responses of developing countries exacerbated the crisis.

Countries even with surplus food imposed ban on exports or fixed a minimum export price to ensure smooth domestic supplies as well as domestic price stability. Countries with substantial import requirements abolished import duties to absorb a part of the rise in food prices; however this measure helped maintain their demand for specific commodities, which put further pressures on international prices. Not only did these protectionist measures reduce the availability of food commodities for international trade, these also raised the importance of domestic food security. In particular, recent report by FAO projected that agricultural commodities’ prices will rise 10-30 percent over the next 10 years compared with their average of 1997-2006.

Analysts believe that this shift can be attributed to long term factors, such as population growth, changes in dietary habits among the new middle class in emerging economies and demand for grains and oilseeds for production of bio-fuels. In addition, analysts fear reduction in cereals production going forward, for example, global grain supply is likely to reduce by 2. 5 percent in 2009-10 cropping seasons. Three other important factors that can affect food prices are climatic change, global warming, and changing weather cycles. The recent increase in sugar prices, for example, is mainly a result of poor monsoon in India and excessive rains in Brazil.

From the point of view of food security, some rich countries including Saudi Arabia, Japan and South Korea have started to invest abroad by seeking fertile soil in developing countries to ensure supplies of key staples and reduce dependency on imports. Moreover, the G8 countries have stated that they will announce a ‘food security initiative’, committing more than US$ 12 billion for agricultural development in developing countries over the next three years. fertilizer production[9] According to Business Recorder “The government has finally decided to curtail feedstock gas supply of the fertilizer industry. Low gas provision implies lesser fertilizer production and higher imports.

Its blow on countrys foreign exchange is calculated to be around $25-30 million per month. ” “Fertilizer companies in the north will now be provided 20 percent lesser gas for feedstock purpose, whereas those in the south will be fortunate enough, due to technical reasons, to be deprived of only 12-13 percent feedstock gas. Gas curtailment would naturally mean lesser urea production, which may go down by 17 percent on weighted average basis. In anticipation of lower urea sales as a consequence, fertilizer companies have reportedly hinted at raising urea prices by 10 percent or Rs75-80/bag in south and by Rs50 per bag in north. ” “Who is the biggest loser in this episode? Yes, it is the usual scapegoat farmers’ community.

A sudden 10 percent hike in the major input cost would undoubtedly result in panic amid calls for higher support prices – eventually leading to a round of higher inflation. ” other problems Agriculturist Ibrahim Mughal Chairman Agri-Forum Pakistan said on Tuesday the farmers are also unable to afford diesel due to its skyrocketing prices to run diesel engines to irrigate the land. He further demanded the government to ensure uninterrupted power supply to the growers to enhance the agriculture production and to overcome food shortage in the country. Kisan Board Pakistan also expressed their great concern over long hours load shedding stating that it would lead to collapse the agriculture sector.

They also demanded the government to immediately cut down the diesel price so that the growers could be able to irrigate their fields. [10] recommendations In view of existing ground realities and statistic, it is impossible to overcome the crisis by short term measures. As we implement short term measures to reduce the crisis the energy would have increased more and the short term measures would look like nothing. In order to address this crisis three dimension parallel implementation measures are required. These are: I. Energy conservation measures II. Short term measures III. Long term measures Energy conservation measures

There are no immediate solutions to generating additional power through any source because a unit takes at least 2-3years to establish a thermal power plant and more than 5 years are required to construct a hydroelectric dam and the investment is enormous. So, energy conservation or efficient use of electricity is what is needed at this crucial time. We should make the best use of existing power generation by taking conservation measures at individual, community and national level. The major users of electricity need to be educated and motivated to play their role in energy conservation. They are: industrial sector and domestic/household sector.

Each sector needs to be dealt separately to highlight the benefits of conserving energy. Domestic/household sector consumes around 21 per cent of electricity produced in the country. This sector could be efficient by 30 per cent by avoiding wasteful habits of consuming energy such as keeping markets fully lit etc. A positive development that has so far taken place in this sector is gradual shifting over to use of energy savers. Similarly energy could be saved by minimum use of air conditioners. The entire household should be well-aware of energy consumption. The Industrial sector is consuming the largest amount of energy in the country. It consumes around 45 per cent of the total commercial energy.

Most of them are concentrated in a few industrial areas close to or within large cities such as Karachi, Lahore and other cities. Industrial units are not energy efficient and management practices need improvement to make efficient use of electricity. A study carried out by an agency ENERCON reveals that efficient use of electricity by the industrial sector could save up to 23 per cent of electricity. The focus on energy conservation is on the improvement of steam distribution systems, air conditioning, refrigeration and modernizing and revamping energy efficient combustion processes and controls. A comprehensive plan should be developed to raise awareness in the masses through a campaign in print and electronic media.

Some financial benefits to the consumers of power should also be given if they cut their power to a certain extent. Power crisis is not something new in the world. In 2000-01, US state of California introduced a plan to reduce the power crisis, further New Zealand, Australia, Argentina, Brazil and even SriLanka have done it successfully. [pic] Short Term Measures The following short term measures can be taken immediately in order to reduce the intensity of existing power crisis: • With power needed immediately, wind turbines look good because they are relatively fast to install whereas dams and nuclear power plants take five to six years to complete and thermal power plants need two years at least.

Wind power can play a big part of solving Pakistan’s energy shortages, and now that comprehensive wind maps have already been researched in the country. Immediate measure should be taken to install wind turbines especially in the already identified wind corridors of Karachi, Thatta, Gharo and Thar. The wind turbines are also a viable solution considering cost and environment. • Government authorities should ensure overhauling all of the countries existing power plants to achieve maximum generation as well as prevent it from overloading which has been a source of power outages. This can be done by periodically shutting down one plant at a time for maintenance and overhauling in order to avoid overloading on other power plants. Relaxing duties and taxes on energy conserving electrical devices, such as energy saver lamps, LED lights, solar operated devices and wind turbines. Long Term Measures The following long term measures should be taken keeping in view the projected increase in power consumption in the future: • Pakistan has estimated as the world’s third-largest known coal reserves of 33. 0 trillion tons in the south-eastern part of the country i. e. Thar. The answer to long term solution of power crisis in Pakistan lies in using local coal for power generation. The electricity production from coal is also cheaper than thermal generation. • In the long-term, Pakistan should also build more nuclear plants and dams. Rehabilitation and replacement of the outdated transmission and distribution systems is also a long term measure through which the country can overcome the perennial problem of line losses and thefts by unscrupulous consumers. All of the above mentioned measures if implemented with commitment and honesty of purpose can help our country and people to over come negative implications of power crisis. Others measures could be: Measures by the government The government is taking several measures into account to counter the power crisis. Its first priority should be to implement immediate measures that might bring some relief to the public. It should also immediately embark upon the program of expansion of generating capacities that has been laid down by the previous government under “Vision 2025” program.

It envisions increasing existing power generating capacity by 10000 mw by 2010 and around 35000 mw by 2025 at an enormous cost of $35 billion to be shared by the government and private sector. The share of different sources of energy is stipulated to be as follows: hydro-electricity: 22563 mw, new gas fired plants: 4680 mw, coal fired plants: 4350 mw, nuclear plants: 1800 mw and finally 1500 mw from renewable energy resources. It is certainly an ambitious plan that needs to be implemented on priority basis with changes that the new government might like to make within its national policy framework. renewable energy resources Resorting to renewable energy resources is a good idea.

The following are some renewable energy sources. 1. Thermal energy 2. Bio electricity 3. Solar power 4. Wind power Thermal Electricity It is the electricity which can be generated by natural resources like oil, gas, and coal. A large coal-field having a resource potential of about 175 billion tones has been discovered at Thar (Sindh) Biomass Power: Biomass consists of plant materials and animal products; however, this type is not very popular in developing countries. Factories producing organic waste can utilize this method in the textile mills, leather tanneries and sugar mills. Solar Power Power can also be generated from sunlight by photovoltaic cells. If 0. 5% of Baluchistan is covered with solar panels with an efficiency of 20% the electricity generated would be enough to cover the whole of Pakistan. But there are issues; firstly, 70% of the population lives in 50,000 villages that are very far from the national grid. Connecting the villages with the national grid would be very costly. The solution to this problem is giving each house a solar panel which would be cost efficient and would empower people both economically and socially. Wind Energy Pakistan can also generate electricity by wind turbines. Pakistan is fortunate to possess something that many other countries do not i. e. high wind speeds. Near Islamabad the wind speed is between 13. mps to 16. 5 mps and near Karachi it is 13. 8 mps to 15. 4 mps. Suzlon manufactures wind turbines in India. Working with Suzlon, Pakistan can start manufacturing its own wind turbine industry and create thousands of jobs while solving its energy problems. Here are some clear recommendations to counter the power crisis: • The first recommendation is for the leaders to have a clear vision. There is still a mayhem and a chaotic situation as to what exactly is to be done in this regard. The non renewable energy resources are depleting and we do not have time for experimentation and false promises. Its high time to have a clear direction in mind. The provinces should unite and resolve the Kalabagh Dam conflict which is pending since decades and which can be helpful in making the ends meet. • All provinces should work together in collaboration with the government to make Pakistan economically viable especially in the power sector to attract foreign investors so that the huge reservoirs of renewable sources with exorbitant potential of producing energy could be exploited. • The government should give subsidies to the farmers to accelerate their morale and to increase the productivity of the agricultural sector. • Water conflicts should be resolved with India in collaboration with conflict resolution bodies like the WTO. The citizens of Pakistan, regardless of the cadre they belong to, should show cooperation and unity. References I. [11]Consulate General of Switzerland Pakistan, 2009. Pakistan Power Sector. http://www. osec. ch/internet/osec/de/home/export/countries/pk/export/economic_report. -RelatedBoxSlot-98778-ItemList-51087-File. File. pdf/0910_E_SectorReport_Power_Pakistan. pdf. II. 2 Mohsin Ali, 2010. Agricultural Problem in Pakistan and their Solutions. http://www. einfopedia. com/agriculture-problems-in-pakistan-and-their-solutions. php III. 3 Shamyl. 2010. Energy Crunsch in Pakistan: Cause, Effect and Solutions. http://socyberty. com/issues/energy-crunch-in-pakistan-cause-effect-solution/#ixzz0nSDdOrQN

IV. 4Load shedding hits agriculture sector. 2010. The Nation. http://www. nation. com. pk/pakistan-news-newspaper-daily-english-online/Business/15-Oct-2008/Loadshedding-hits-agriculture-sector V. 5 Shamyl. 2010. Energy Crunsch in Pakistan: Cause, Effect and Solutions. http://socyberty. com/issues/energy-crunch-in-pakistan-cause-effect-solution/#ixzz0nSDdOrQN VI. 6Chana, A. 2010. Kharif season: rice cultivation in Ghotki, Rohri canals areas banned. Business Recorder. http://www. brecorder. com/index. php? id=1052283=2==== VII. 7 Load shedding hits agriculture sector. 2010. The Nation. http://www. nation. com. k/pakistan-news-newspaper-daily-english-online/Business/15-Oct-2008/Loadshedding-hits-agriculture-sector VIII. 8Load shedding hits agriculture sector. 2010. The Nation. http://www. nation. com. pk/pakistan-news-newspaper-daily-english-online/Business/15-Oct-2008/Loadshedding-hits-agriculture-sector IX. 9BR Reasearch, 2010. Less gas for fertilizer, more pain for the farmer. http://www. brecorder. com/others/rdetails. php? pg=871 X. Ahmed. A. Electricity Crisis in Pakistan. http://www. slideshare. net/asharahmed/electricity-crisis-in-pakistan. XI. Enery crisis and the solution. http://www. telenor. com. pk/karomumkin/? p=6139 XII. Energy Crisis of Pakistan. (http://www. scribd. om/doc/29207391/Energy-Crisis-of-Pakistan#) XIII. 10Load shedding hits agriculture sector. 2010. The Nation. http://www. nation. com. pk/pakistan-news-newspaper-daily-english-online/Business/15-Oct-2008/Loadshedding-hits-agriculture-sector XIV. 11M. Sharif. Pakistan’s energy crisis: short and long-term solutions. http://www. opfblog. com/1499/pakistans-energy-crisis-short-and-long-term-solutions/ XV. Pakistan – the regional business hub. http://www. agroasia. net/paksectors. htm XVI. Agriculture in Pakistan. http://rehmananwar. blogspot. com/2010/03/agriculture-in-pakistan. html XVII. Ahmed. R. 2008. Improving water productivity in agricultural sector. http://www. nation. com. k/pakistan-news-newspaper-daily-english-online/Business/28-Nov-2008/Improving-water-productivity-in-agricultural-sector XVIII. Energy crisis. http://www. oppapers. com/essays/Energy-Crisis/292210? read_essay XIX. Economic outlook. http://www. sbp. org. pk/reports/annual/arFY09/Chp-1. pdf XX. Economic Growth Savings and Investment. http://www. sbp. org. pk/reports/annual/arfy07/Chp-2. pdf XXI. Pakistan Economic Survey 2007-08. http://www. finance. gov. pk/admin/images/survey/chapters/02-Agriculture08. pdf ———————– [1] Consulate General of Switzerland Pakistan, Pakistan Power Sector. Osec Business Network Switzerland. [2] Mohsin Ali, 2010. Agricultural Problem in Pakistan and their Solutions

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