SWOT Analysis Map

Strengths 1. Meanwhile, a statement issued by the Sindh Chief Ministers House said Thar coal was the most viable option for providing security to the country. http://www.pakistantoday.com.pk/2012/05/13/news/ national/planning-commission-says-thar-coal-projectunfeasible/ 2. It said Pakistan had huge lignite coal reserves in Thar estimated to be 175 billion tons. The quality of Thar Lignite Coal was at par or even better than the lignite mined in other parts of the world. 3. It is worth mentioning here that on 31st May 2012 on the eve of releasing of Economic Survey, Finance Minister Dr Hafeez Sheikh as well as Dr Nadeem had endorsed this National Project of generation power from Thar coal in the special media conference. http://www.thenews.com.pk/Todays-News-2-122246Conspiracy-against-Thar-Coal-Power-Project 4. Dr Samar Mubarakmand is in no way a hindrance to Thar Coal development. Five coal bearing blocks have been allocated to four International Mining Companies and one to International UCG Company by Government of Sindh (GoS). GoS is providing all the encouragement by spending billions of rupees on the provision of infrastructure for them. Blocks 7-12 have been offered for bids by GoS. 5. SIALKOT (Sarmad Mehmood) - Member Science and Technology Planning Commission of Pakistan, Dr Samar Mubarakmand has said that Pakistan is rich in coal reservoirs and stands fourth in the world with 175 million tonnes of coal. http://www.nation.com.pk/pakistan-news-newspaper-dailyenglish-online/business/08-Jul-2012/coal-usage-to-heal-powerwounds 6. Engro has gone about as far as it can on its own in this partnership. It has conducted a bankable feasibility study for a 6.5-ton per day coal mining and 1,200megawatt power generation project. Were the project to go ahead on time, it would cost about $3 billion and be completed by 2016. http://paktribune.com/business/news/Credibility-gap-Engromay-pull-out-of-3b-coal-mining-project-9682.html Weaknesses 1. Engro's management is hesitant to pull the trigger on the project for a variety of reasons. The primary reason appears to be the government's failure to provide the promised gas to Engro's plant at Daharki, for which the company raised $1.1 billion mostly in debt. While the company is not facing immediate financial difficulty, its ability to continue expansion depends on the success of its previous projects. http://paktribune.com/business/news /Credibility-gap-Engro-may-pull-outof-3b-coal-mining-project-9682.html

SWOT Analysis Map

SWOT Analysis Map

Opportunities 1. Projects like Thar Coal and Kalabagh Dam are among best choices for power generation to overcome energy shortfall in the country. http://www.brecorder.com/fuel-aenergy/193:pakistan/1219980:thar-coal-kbd-projects-vital-forindustry/?date=2012-07-23 2. Addressing the Presidents of Chambers of Commerce and Industry at Sialkot Chamber of Commerce and Industry (SCCI) on Saturday, he said that Pakistan could produce gas and power through underground coal gasification due to the unique quality of the coal and fulfil its industrial as well as domestic needs sufficiently. The government has approved 100 megawatt project and Thar Coal Board has already decided to attract private sector to show Expression of Interest (EOI) in the project, he revealed. http://www.nation.com.pk/pakistan-news-newspaper-dailyenglish-online/business/08-Jul-2012/coal-usage-to-heal-powerwounds 3. LAHORE, July 7 (APP): Federal Minister for Water and Power Chaudhry Ahmad Mukhtar said on Saturday that power generation was being switched over from thermal to coal with the cooperation of China due to which the capacity of power Generation Companies (GENCOs) would improve. Talking to the media at Allama Iqbal International Airport, he said the government was trying to overcome electricity shortage and in the second phase the tariff of electricity would be brought down. http://app.com.pk/en_/index.php?option=com_content& task=view&id=201253&Itemid=2 4. Thar coal resources can be used for power generation, chemical production and other uses and has the potential of providing energy security to the country, he said. He stressed that the work on project be accelerated for the benefit of the people. http://www.dailytimes.com.pk/default.asp?page=2012%5C07 %5C15%5Cstory_15-7-2012_pg12_1 5. American investors will be encouraged to invest in Pakistans coal sector, which offers lucrative investment opportunities to foreigners, during the Federation of Pakistan Chambers of Commerce &

Threats 1. As the government is finding ways to cope with prevailing energy crisis in the country, the Planning Commission has termed the Thar Coal project unfeasible. http://www.pakistantoday.com.pk/20 12/05/13/ news/national/planning-commissionsays-thar-coal-project-unfeasible/ 2. Dr Samar said that a lobby was actively working against the project just to deprive the nation of inexpensive electricity and gas. http://www.nation.com.pk/pakistannews-newspaper-daily-englishonline/business/08-Jul-2012/coalusage-to-heal-power-wounds 3. Dr Samar said that the Science and Technology section of the Planning Commission had conceived the project for the generation of 100 MW of electricity. He claimed that similar projects were being currently executed at more than 40 places in the subcontinent. Coal is also converted into coal gas above the ground in machines called surface gasifies, he argued, and disclosed that Surface Gasifies had already been installed and were in operation in different industries across the country while 18 gasifies were currently on order waiting delivery within short span of time. This solution, he said, had become very popular in

SWOT Analysis Map

Industry (FPCCI) delegations impending visit to USA. http://www.pakistantoday.com.pk/2012/05/06/news/profit/u ncle-sam-could-spare-some-cash-for-our-coal-sector/ the manufacturing sector of the country and it was expected that by the end of the current year significant number of industries would generate their own gas and electricity from the coal. 4. Dr Samar expressed the hope that this would greatly impact the economic growth of the country through enhanced manufacturing, increased employment, competitive exports as well as intensity of mining sector. He said that in line with the newly developed Economic Growth Strategy of Planning Commission, a considerable increase in GDP would be observed in the coming years in the production sector without any burden on the public sector development programme, adding that the Planning Commission had provided technical impetus and intellectual inputs to advance the economy of the nation. 5. The Federal Board of Revenue (FBR) is likely to issue a new sales tax special procedure for coal mining companies for payment of sales tax in budget (2012-2013) to replace the existing system of fixation of a minimum value of taxable supply of locally produced coal at Rs. 1000 per ton for the purpose of sales tax calculation. http://www.brecorder.com/topnews/1-front-top-news/57418-coalmining-companies-fbr-may-issue-newsales-tax-special-procedure-.html