Pakistan Economy Thread
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Brigadier
Pakistan declared world’s best travel destination for 2018!
Pakistan, for its mesmerizing natural beauty and warm hospitality, has been named the best travel destination of 2018 by the British Backpacker Society. ‘One of the friendliest countries on earth, with mountain scenery that is beyond anyone’s wildest imagination,’ they complemented.
The list, which was composed of world’s top 20 adventure travel destinations for 2018 included countries like Russia, India, Turkey, Kyrgyzstan and China. ‘Pakistan is the clear winner of the British Backpacker Society’s top 20 adventure travel destinations 2018 and we encourage keen travelers to book a trip now,’ added the delighted backpackers.
Having travelled to 101 countries, being avid travelers, this is no small feat that the unquestionably amazing hospitality and breathtaking natural beauty of Pakistan stood out to the Backpackers and won their hearts.
Joynson and Sloper, both belonging to southern England, came to Pakistan in 2016, and after spending some days in the major cities of Lahore, Rawalpindi and Islamabad, headed to the northern areas of Naran, through the Kaghan Valley, and travelled as far as Babusar Top to Gilgit. They continued on to journey through the serene Hunza Valey as they reached the summit of ‘the ultimate manifestation of mountain grandeur’, the Hon Pass, from Karimabad.
The group of travelers were not only mesmerized by the breathtaking scenery, but also by the cultural enrichment of the country – northern areas in particular.
The society encourages has been working on inspiring people to choose third world countries as their travel destinations and to explore the places which have been near-forsaken due to any reasons. Shunning the security concerns, which is a huge question mark for potential tourists of Pakistan, Adam, on of the backpackers, insisted that interacting with the locals can really change preconceptions, as has been the case of Pakistan for him which he claims to be an experience unlike any other.
Pakistan, for its mesmerizing natural beauty and warm hospitality, has been named the best travel destination of 2018 by the British Backpacker Society. ‘One of the friendliest countries on earth, with mountain scenery that is beyond anyone’s wildest imagination,’ they complemented.
The list, which was composed of world’s top 20 adventure travel destinations for 2018 included countries like Russia, India, Turkey, Kyrgyzstan and China. ‘Pakistan is the clear winner of the British Backpacker Society’s top 20 adventure travel destinations 2018 and we encourage keen travelers to book a trip now,’ added the delighted backpackers.
Having travelled to 101 countries, being avid travelers, this is no small feat that the unquestionably amazing hospitality and breathtaking natural beauty of Pakistan stood out to the Backpackers and won their hearts.
Joynson and Sloper, both belonging to southern England, came to Pakistan in 2016, and after spending some days in the major cities of Lahore, Rawalpindi and Islamabad, headed to the northern areas of Naran, through the Kaghan Valley, and travelled as far as Babusar Top to Gilgit. They continued on to journey through the serene Hunza Valey as they reached the summit of ‘the ultimate manifestation of mountain grandeur’, the Hon Pass, from Karimabad.
The group of travelers were not only mesmerized by the breathtaking scenery, but also by the cultural enrichment of the country – northern areas in particular.
The society encourages has been working on inspiring people to choose third world countries as their travel destinations and to explore the places which have been near-forsaken due to any reasons. Shunning the security concerns, which is a huge question mark for potential tourists of Pakistan, Adam, on of the backpackers, insisted that interacting with the locals can really change preconceptions, as has been the case of Pakistan for him which he claims to be an experience unlike any other.
timepass
Brigadier
is Providing The Most High Tech for the 2018 FIFA
will use sensor-equipped footballs in the upcoming world cup that have been manufactured in Pakistan.
The biggest footballing event that keeps people at the edge of their seats is going to be a technological marvel. As we reported earlier, the official match balls for this world cup have been manufactured in Pakistan. What makes these balls different from the conventional ones is that technology has been used to revolutionize how the game is played.
The footballs will be equipped with sensor chips with Near Field Communication (NFC) tech that will be connected to a smartphone. The chips don’t really need a special Adidas app to work. You just need to enable NFC on your phone and have the ultimate personalized content experience.
Telstar and the Chip - Adidas is bringing back it’s iconic ball that was ’ first-ever and used in a FIFA world cup in 1970. The ball is called Telstar 18 and you already know it is manufactured in Pakistan. The ball is thermally bonded, meaning heat instead of stitches was used to patch the pieces. Telstar’s seamless surface is designed to ensure precise ball control and reduce water absorption as well.
The embedded chips will help provide the users with personalized content and interaction with the global community. Fans can also upload their videos doing challenges using the Telstar 18 as different competitions will be announced later on. It will further give its owners information about other Adidas products as well.
The technology isn’t as sophisticated as Adidas micoach Smart Ball that gives information like curl and pass speed, shot power etc. but it works just fine considering its an NFC debut match ball.
Take a look:
Adidas micoach Smart Ball
Pakistan and The Ball ... The Telstar 18 has been manufactured by Forward Sports based in . Sialkot is known as the hub of world-class sports equipment and for the past few decades, it has been the biggest exporter of footballs to the world. Here are some of the facts about city’s phenomenal sports culture;
Sialkot is one of the most industrialized cities in the world with around 126 industrial units per square kilometers.
These industries earn about $2 billion annually making up about 10% of the country’s total exports.
The industries in the city employ around 400,000 people as well.
World’s biggest leagues like English Premier League, LaLiga, Ligue 1, Bundesliga, and UEFA Champions League use the same balls manufactured in Sialkot.
Sialkot accounts for 70% of the total demand for footballs to the world. More than 40 million footballs are exported every year from the city. The industries have enough capacity to produce 18,000 every day.
The city got global attention in 1982 when its footballs were used for the first-time ever in the FIFA world cup that year.
Not just footballs, the city is known to provide quality tennis, cricket, and hockey equipment as well. Furthermore, it is also home to the world’s second-best surgical instrument industry as well.
will use sensor-equipped footballs in the upcoming world cup that have been manufactured in Pakistan.
The biggest footballing event that keeps people at the edge of their seats is going to be a technological marvel. As we reported earlier, the official match balls for this world cup have been manufactured in Pakistan. What makes these balls different from the conventional ones is that technology has been used to revolutionize how the game is played.
The footballs will be equipped with sensor chips with Near Field Communication (NFC) tech that will be connected to a smartphone. The chips don’t really need a special Adidas app to work. You just need to enable NFC on your phone and have the ultimate personalized content experience.
Telstar and the Chip - Adidas is bringing back it’s iconic ball that was ’ first-ever and used in a FIFA world cup in 1970. The ball is called Telstar 18 and you already know it is manufactured in Pakistan. The ball is thermally bonded, meaning heat instead of stitches was used to patch the pieces. Telstar’s seamless surface is designed to ensure precise ball control and reduce water absorption as well.
The embedded chips will help provide the users with personalized content and interaction with the global community. Fans can also upload their videos doing challenges using the Telstar 18 as different competitions will be announced later on. It will further give its owners information about other Adidas products as well.
The technology isn’t as sophisticated as Adidas micoach Smart Ball that gives information like curl and pass speed, shot power etc. but it works just fine considering its an NFC debut match ball.
Take a look:
Adidas micoach Smart Ball
Pakistan and The Ball ... The Telstar 18 has been manufactured by Forward Sports based in . Sialkot is known as the hub of world-class sports equipment and for the past few decades, it has been the biggest exporter of footballs to the world. Here are some of the facts about city’s phenomenal sports culture;
Sialkot is one of the most industrialized cities in the world with around 126 industrial units per square kilometers.
These industries earn about $2 billion annually making up about 10% of the country’s total exports.
The industries in the city employ around 400,000 people as well.
World’s biggest leagues like English Premier League, LaLiga, Ligue 1, Bundesliga, and UEFA Champions League use the same balls manufactured in Sialkot.
Sialkot accounts for 70% of the total demand for footballs to the world. More than 40 million footballs are exported every year from the city. The industries have enough capacity to produce 18,000 every day.
The city got global attention in 1982 when its footballs were used for the first-time ever in the FIFA world cup that year.
Not just footballs, the city is known to provide quality tennis, cricket, and hockey equipment as well. Furthermore, it is also home to the world’s second-best surgical instrument industry as well.
timepass
Brigadier
acquires 100 percent stake in ......
The financial details of the transaction were not revealed and Daraz would continue to operate under the same brand following the sale to Alibaba, said Rocket Internet.
LAHORE: Tech titan Alibaba Group has acquired Pakistan’s largest e-commerce portal Daraz.pk confirmed its proprietor Rocket Internet on Tuesday.
As per reports, Alibaba acquired the entire share capital of Rocket Internet’s South Asian e-commerce platform Daraz Group and did not reveal any financial details of the transaction.
Daraz, founded in Pakistan in 2012, operates online marketplaces in Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal.
The unit will continue to operate under the same brand following the sale to Alibaba, Rocket said.
Pakistan’s nascent e-commerce space will get an impetus by the entrance of a tech titan of Alibaba’s stature which has operations sprawling across the globe.
Alibaba has been in a tussle with Amazon to gain a foothold in south-east Asia as the regions burgeoning young population and tech savviness remains the target for both companies.
Earlier this year, Yayvo’s Head Adam Dawood in a conference held in Karachi had stated Pakistan’s e-commerce market size was set to cross $1 billion this year.
Recently, Pakistan’s broadband users touched the 56 million mark indicating an increase in penetration of internet services across the country.
This constitutes 27.5 percent of the country’s population which stands around 200 million, but the country is lagging its peers in the e-commerce segment and mobile payment penetration remains abysmally low.
According to a recently prepared report about ‘Digital in 2018’ by We are Social, and Hootsuite about Pakistan revealed people making or receiving mobile payments via GSMA stood at 6 percent, with those making online purchases or paying online bills was recorded at a meagre 2 percent.
The percentage of men and women having a credit card didn’t represent much disparity, as it was recorded at 0.2 percent and 0.1 percent respectively.
Percentage of both genders making internet payments stood at 0.4 percent for females and 3 percent for males respectively.
The low percentage of financial inclusivity is something that has also been acknowledged by the State Bank of Pakistan, for which a National Financial Inclusion Strategy was formally launched and adopted by the government in May 2015.
Profit reached out to an e-commerce expert for a comment who preferred to remain anonymous said “Alibaba second investment into Pakistan is an indication of their bullish attitude towards the market. With e-commerce revenues more than doubling annually and looking to cross $1 Billion in revenue this year. Alibaba wants to enter early and capture as much of the gains as possible. The strategy fits in with CPEC and Jack Ma’s own eWTP strategy to open up small businesses to world trade.”
Ahmed Muzammil, CEO Mezino Technologies while talking to Profit regarding Alibaba’s acquisition of Daraz said “This is the first main exit of a Pakistani startup with a focus on Pakistani market. It’s a great news for the startup community.
But on the other hand, Pakistani e-commerce companies are not equipped to compete with Chinese companies. If AliExpress, etc come to Pakistan, all local platforms will be out of businesses. All local sellers would rely on these Chinese platforms entirely.”
Alibaba’s executive vice chairman Joseph Tsai during an earnings call this month said, “Southeast Asian countries are not large or strong manufacturing countries, which means companies there “are still looking for sourcing opportunities back to China,” providing Alibaba with a key advantage.
The China-based giant has its operations in over 200 countries around the globe and recently made a $20 million investment in Rent the Runway, a multi-billion-dollar fund which invests in private and public-private equity on behalf of dynamic individuals like Jack Ma.
After the US imposed import duties on China’s technology and other sectors, Alibaba’s Jack Ma warned companies in the country and elsewhere to reduce their reliance on US companies for chips after ZTE was furnished a ban from buying American-made components.
In mid-April, Alibaba acquired a China-based embedded processor intellectual property developer C-Sky Microsystems Co. Ltd for an undisclosed amount of money.
The company in March invested an extra $2 billion in south-east Asian e-commerce firm Lazada Group and tapped a top executive to run the business, to takes on rivals such as tech titan Amazon in an aggressive expansion in the region.
In mid-March, it was reported Alibaba was contemplating to purchase Rocket Internet’s online retail unit Daraz in Pakistan.
According to a report by Bloomberg, both sides had entered into talks and were settling a price for Pakistan’s leading e-commerce website, a source who declined to be named, said.
The talks were then reported to have been at an initial stage and no specific decisions were made, the source had revealed.
Back in March, Alibaba’s Ant Financial said it would invest $184.5million for a 45 percent stake in Telenor Microfinance Bank (TMB), a subsidiary of Telenor Group, to further develop TMB’s mobile payment and digital financial services.
The strategic partnership between Telenor Group and Ant Financial combines TMB’s knowledge and local market presence with more than 20 million customers, and Ant’s technology in Alipay, the world’s largest digital payments platform, and other financial services to bring mobile payment and inclusive financial services to individuals as well as small and micro businesses in Pakistan.
In 2017, the Pakistani government and Alibaba had signed a memorandum of understanding (MoU) to foster the country’s exports by Small and Medium Enterprises (SMEs) worldwide via e-commerce.
The financial details of the transaction were not revealed and Daraz would continue to operate under the same brand following the sale to Alibaba, said Rocket Internet.
LAHORE: Tech titan Alibaba Group has acquired Pakistan’s largest e-commerce portal Daraz.pk confirmed its proprietor Rocket Internet on Tuesday.
As per reports, Alibaba acquired the entire share capital of Rocket Internet’s South Asian e-commerce platform Daraz Group and did not reveal any financial details of the transaction.
Daraz, founded in Pakistan in 2012, operates online marketplaces in Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal.
The unit will continue to operate under the same brand following the sale to Alibaba, Rocket said.
Pakistan’s nascent e-commerce space will get an impetus by the entrance of a tech titan of Alibaba’s stature which has operations sprawling across the globe.
Alibaba has been in a tussle with Amazon to gain a foothold in south-east Asia as the regions burgeoning young population and tech savviness remains the target for both companies.
Earlier this year, Yayvo’s Head Adam Dawood in a conference held in Karachi had stated Pakistan’s e-commerce market size was set to cross $1 billion this year.
Recently, Pakistan’s broadband users touched the 56 million mark indicating an increase in penetration of internet services across the country.
This constitutes 27.5 percent of the country’s population which stands around 200 million, but the country is lagging its peers in the e-commerce segment and mobile payment penetration remains abysmally low.
According to a recently prepared report about ‘Digital in 2018’ by We are Social, and Hootsuite about Pakistan revealed people making or receiving mobile payments via GSMA stood at 6 percent, with those making online purchases or paying online bills was recorded at a meagre 2 percent.
The percentage of men and women having a credit card didn’t represent much disparity, as it was recorded at 0.2 percent and 0.1 percent respectively.
Percentage of both genders making internet payments stood at 0.4 percent for females and 3 percent for males respectively.
The low percentage of financial inclusivity is something that has also been acknowledged by the State Bank of Pakistan, for which a National Financial Inclusion Strategy was formally launched and adopted by the government in May 2015.
Profit reached out to an e-commerce expert for a comment who preferred to remain anonymous said “Alibaba second investment into Pakistan is an indication of their bullish attitude towards the market. With e-commerce revenues more than doubling annually and looking to cross $1 Billion in revenue this year. Alibaba wants to enter early and capture as much of the gains as possible. The strategy fits in with CPEC and Jack Ma’s own eWTP strategy to open up small businesses to world trade.”
Ahmed Muzammil, CEO Mezino Technologies while talking to Profit regarding Alibaba’s acquisition of Daraz said “This is the first main exit of a Pakistani startup with a focus on Pakistani market. It’s a great news for the startup community.
But on the other hand, Pakistani e-commerce companies are not equipped to compete with Chinese companies. If AliExpress, etc come to Pakistan, all local platforms will be out of businesses. All local sellers would rely on these Chinese platforms entirely.”
Alibaba’s executive vice chairman Joseph Tsai during an earnings call this month said, “Southeast Asian countries are not large or strong manufacturing countries, which means companies there “are still looking for sourcing opportunities back to China,” providing Alibaba with a key advantage.
The China-based giant has its operations in over 200 countries around the globe and recently made a $20 million investment in Rent the Runway, a multi-billion-dollar fund which invests in private and public-private equity on behalf of dynamic individuals like Jack Ma.
After the US imposed import duties on China’s technology and other sectors, Alibaba’s Jack Ma warned companies in the country and elsewhere to reduce their reliance on US companies for chips after ZTE was furnished a ban from buying American-made components.
In mid-April, Alibaba acquired a China-based embedded processor intellectual property developer C-Sky Microsystems Co. Ltd for an undisclosed amount of money.
The company in March invested an extra $2 billion in south-east Asian e-commerce firm Lazada Group and tapped a top executive to run the business, to takes on rivals such as tech titan Amazon in an aggressive expansion in the region.
In mid-March, it was reported Alibaba was contemplating to purchase Rocket Internet’s online retail unit Daraz in Pakistan.
According to a report by Bloomberg, both sides had entered into talks and were settling a price for Pakistan’s leading e-commerce website, a source who declined to be named, said.
The talks were then reported to have been at an initial stage and no specific decisions were made, the source had revealed.
Back in March, Alibaba’s Ant Financial said it would invest $184.5million for a 45 percent stake in Telenor Microfinance Bank (TMB), a subsidiary of Telenor Group, to further develop TMB’s mobile payment and digital financial services.
The strategic partnership between Telenor Group and Ant Financial combines TMB’s knowledge and local market presence with more than 20 million customers, and Ant’s technology in Alipay, the world’s largest digital payments platform, and other financial services to bring mobile payment and inclusive financial services to individuals as well as small and micro businesses in Pakistan.
In 2017, the Pakistani government and Alibaba had signed a memorandum of understanding (MoU) to foster the country’s exports by Small and Medium Enterprises (SMEs) worldwide via e-commerce.
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Brigadier
Rs486.726 million for the expansion and upgrading of Next Generation Mobile Services (NGMS - 3G/4G) services
The government has allocated Rs486.726 million for the expansion and upgrading of Next Generation Mobile Services (NGMS - 3G/4G) services and seamless coverage along the Highway () in support of in ...
The government has allocated Rs486.726 million for the expansion and upgrading of Next Generation Mobile Services (NGMS - 3G/4G) services and seamless coverage along the Highway () in support of in ...
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Brigadier
Chartered freighter flights to all the major destinations across .
Based at , Air Falcon will soon be offering chartered freighter flights to all the major destinations across .
Air Falcon Fleet operates with state of the art ATR-72-500 and Boeing 737-400F aircrafts.
Based at , Air Falcon will soon be offering chartered freighter flights to all the major destinations across .
Air Falcon Fleet operates with state of the art ATR-72-500 and Boeing 737-400F aircrafts.
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Brigadier
Ghandara Starts Payments in Chinese Yuan to Import Trucks in Pakistan....
Automaker Ghandhara Nissan Limited (GNL) imported three million yuan of trucks from China by settling the trade transaction in renminbi in its maiden deal with a Chinese bank based in Pakistan.
As per the company’s official statement, the automaker carried out a Rs 53 million (equivalent to 3 million Chinese yuan) letter of credit (LC). The transaction was done with Bank of China Limited Pakistan (ICBC).
“We had a CNY (Chinese Yuan) LC established through ICBC during March 2018 amounting to CNY3 million (approximating to Rs 53 million),” Ghandhara Nissan’s official said.
He also added that “This is not the first trade transaction in CNY as far as our business is concerned; however, it is the first ever CNY LC transaction executed between ICBC and GNL.”
Ghandhara Nissan has had trade deals with Chinese original equipment manufacturers (OEMs) in yuan in the last few years with LCs established through multiple local banks. The Chinese manufacturers include Dongfeng Commercial Vehicle Co. Limited, China and JAC Motors, China.
GHNL’s official said that since trade in Chinese currency is in a developing phase and the volume is not substantial as compared to trade in dollars, cost of retiring import documents is slightly high if the letter of credit is established through any local bank.
He also added that “This can be reduced by having LCs established through Chinese banks like ICBC. Furthermore, as of now, most of the banks are not offering forward covers to hedge forex exposure in case of CNY LCs, which usually are available for LCs in USD (dollar).”
Advisor to the ICBC told a local English Newspaper that a trade transaction in Chinese currency is very good for Pakistan and “as a first step in encouraging the use of local currency between the two countries’ increasing trade going forward”.
Chinese banks are very eager to promote the international use of yuan in different regions of the world, especially across the route of its Belt and Road initiative.
The State Bank of Pakistan is encouraging Chinese lenders to establish a local yuan settlement and clearing mechanism in Pakistan.
China is Pakistan’s largest trading partner with a bilateral trade volume of $14 billion.
The neighboring country pledged more than $55 billion in investment for infrastructure development under China-Pakistan Economic Corridor project.
Automaker Ghandhara Nissan Limited (GNL) imported three million yuan of trucks from China by settling the trade transaction in renminbi in its maiden deal with a Chinese bank based in Pakistan.
As per the company’s official statement, the automaker carried out a Rs 53 million (equivalent to 3 million Chinese yuan) letter of credit (LC). The transaction was done with Bank of China Limited Pakistan (ICBC).
“We had a CNY (Chinese Yuan) LC established through ICBC during March 2018 amounting to CNY3 million (approximating to Rs 53 million),” Ghandhara Nissan’s official said.
He also added that “This is not the first trade transaction in CNY as far as our business is concerned; however, it is the first ever CNY LC transaction executed between ICBC and GNL.”
Ghandhara Nissan has had trade deals with Chinese original equipment manufacturers (OEMs) in yuan in the last few years with LCs established through multiple local banks. The Chinese manufacturers include Dongfeng Commercial Vehicle Co. Limited, China and JAC Motors, China.
GHNL’s official said that since trade in Chinese currency is in a developing phase and the volume is not substantial as compared to trade in dollars, cost of retiring import documents is slightly high if the letter of credit is established through any local bank.
He also added that “This can be reduced by having LCs established through Chinese banks like ICBC. Furthermore, as of now, most of the banks are not offering forward covers to hedge forex exposure in case of CNY LCs, which usually are available for LCs in USD (dollar).”
Advisor to the ICBC told a local English Newspaper that a trade transaction in Chinese currency is very good for Pakistan and “as a first step in encouraging the use of local currency between the two countries’ increasing trade going forward”.
Chinese banks are very eager to promote the international use of yuan in different regions of the world, especially across the route of its Belt and Road initiative.
The State Bank of Pakistan is encouraging Chinese lenders to establish a local yuan settlement and clearing mechanism in Pakistan.
China is Pakistan’s largest trading partner with a bilateral trade volume of $14 billion.
The neighboring country pledged more than $55 billion in investment for infrastructure development under China-Pakistan Economic Corridor project.
timepass
Brigadier
to build one of the largest oil refinery in near ...
One of the largest Oil Refinery is likely to be built near Lahore to cater for the energy needs of the province.
The Chinese company has initiated work on the feasibility for setting up deep conversion oil refinery close to Lahore for catering to the upcountry’s needs. The estimated cost of the mega refinery hovers at $6 billion including the construction of the crude oil pipeline from port city to Lahore.
On the sidelines of Boao Economic Forum recently held in the month of April in China and attended by Prime Minister Shahid Khaqaan Abbasi, Pakistan State Oil (PSO) and Power China for the construction of the upcountry deep conversion oil refinery and crude oil pipeline. The project will help reduce the cost of transporting petroleum products via road from refineries in southern areas and also ensure uninterrupted supply.
Pak-China working group on setting up mega project of oil refinery in Lahore has been set up and to this effect Chinese company has started working on the feasibility study. Petroleum Division (Energy Ministry) has written a letter to the government of Punjab asking for the allocation of 1000-1200 acres of land, a senior official told The News.
Keeping in view increasing POL needs after the completion of projects under CPEC umbrella, Pakistan is going to install two mega deep conversion oil refineries one at Lahore and other at Khalifa Point, HUBCO and more importantly the government has asked the existing oil refineries to upgrade. Upcountry refinery to be set close to Lahore and Khalifa Point refinery will produce the POL products at par with the Euro-5 products. The Lahore refinery will be having the capacity to refine 2500,00-300,000 barrels per day.
To a question, the official said that Lahore refinery will be provided the crude oil through a pipeline that will be laid down either from Karachi or from Somiani port, Balochistan. The experts say the laying of pipeline from Somiani will be more feasible and practical as in Karachi, the congestions of pipeline has aggravated.
The official said that this very vital project will be executed under Public Private Partnership (PPP) mode. By 2030, the demand of the petroleum products in upcountry that include Punjab, KPK, and Northern Parts of the country will inflate up to 60 million tons and it is a wakeup call for the existing refineries to upgrade themselves to cater to the future needs of the country.
More importantly, the financial closure of Khalif Point Refinery has also been achieved. Pak-Arab Refinery Company (PARCO) will establish Khalif Point Refinery with a capacity to refine the crude oil up to 300,000 barrels per day.
One of the largest Oil Refinery is likely to be built near Lahore to cater for the energy needs of the province.
The Chinese company has initiated work on the feasibility for setting up deep conversion oil refinery close to Lahore for catering to the upcountry’s needs. The estimated cost of the mega refinery hovers at $6 billion including the construction of the crude oil pipeline from port city to Lahore.
On the sidelines of Boao Economic Forum recently held in the month of April in China and attended by Prime Minister Shahid Khaqaan Abbasi, Pakistan State Oil (PSO) and Power China for the construction of the upcountry deep conversion oil refinery and crude oil pipeline. The project will help reduce the cost of transporting petroleum products via road from refineries in southern areas and also ensure uninterrupted supply.
Pak-China working group on setting up mega project of oil refinery in Lahore has been set up and to this effect Chinese company has started working on the feasibility study. Petroleum Division (Energy Ministry) has written a letter to the government of Punjab asking for the allocation of 1000-1200 acres of land, a senior official told The News.
Keeping in view increasing POL needs after the completion of projects under CPEC umbrella, Pakistan is going to install two mega deep conversion oil refineries one at Lahore and other at Khalifa Point, HUBCO and more importantly the government has asked the existing oil refineries to upgrade. Upcountry refinery to be set close to Lahore and Khalifa Point refinery will produce the POL products at par with the Euro-5 products. The Lahore refinery will be having the capacity to refine 2500,00-300,000 barrels per day.
To a question, the official said that Lahore refinery will be provided the crude oil through a pipeline that will be laid down either from Karachi or from Somiani port, Balochistan. The experts say the laying of pipeline from Somiani will be more feasible and practical as in Karachi, the congestions of pipeline has aggravated.
The official said that this very vital project will be executed under Public Private Partnership (PPP) mode. By 2030, the demand of the petroleum products in upcountry that include Punjab, KPK, and Northern Parts of the country will inflate up to 60 million tons and it is a wakeup call for the existing refineries to upgrade themselves to cater to the future needs of the country.
More importantly, the financial closure of Khalif Point Refinery has also been achieved. Pak-Arab Refinery Company (PARCO) will establish Khalif Point Refinery with a capacity to refine the crude oil up to 300,000 barrels per day.