yazdi
January 5, 2012, 9:08am
14
Re: Loot sale of gas in Pakistan..
Yes the problem is with the private business ventures, but who allowed and/o allocated gas to these fertilizer units, if i am not wrong then i guess some 33k of cubic feet of gas is required to produce a ton ammonia nitrate and we have fertilizer companies who install upto 500,000 tons of the same..no do the math and see how much gas shall be burned as a feedstock to produce this much ( this is the installed capacity of Fatima Fertilizer)…
Now here few issues or points and something for us to learn and think about, i will not talk about the subsidies or anything else, Yazdi have rightly discussed that already..my point is, why the hell govt agreed to provide gas to these units to start with>>>>> some time it is because govt want FDI in Pakistan and yes, The Fatima Fertilizer and many other oil-based Power generating units, telecom companies have been instrumental in getting FDI in Pakistan… but that have cost us more than it have benefited us, the gas crisis can be solved if the govt stop providing gas to these units.. remember fertilizer companies do not use gas as fuel but as a product for to produce it…
Yes this will be a set back for our fertilizer producing industry, but it won’t have huge impact on the the price of the fertlizer.. we still be importing it… i urge the investors of Pakistan to invest in the fertilizer producing Industry in Alegria and Qatar and Iran and Turkumanistan etc… where gas is ample and they can produce and send the end product to Pakistan.. where as the same gas can be used for other industry who use it as fuel.. it will solve the issue of gas to some extend…
I’ll try to sneak in again to add more
There is a guarantee to supply the gas.. there is no guarantee to supply the gas at dirt cheap throw away prices which is giving these fertilizer factories 70% profit of the sales.. At least the tariffs/rates should be revised as this resource belongs to the poor people who need substantial funds in social sector to uplift education/health etc.