coal industry of pakistan
Coal Industry of pakistan
SWOT ANALYSIS
STRENGTHS
Pakistan has a very large coal reserve base only Thar coal can be used to make 40,000 MW of Electricity for the next 100 years.
Regional powers like China are very much interested in the project and are willing to pour billions of dollars in these projects if the Govt. of Pakistan issues sovereign guarantee.
Sector will essentially contribute to the wiping out of the difference in the electricity shortage.
It would stabilise the economy as oil imports are going to decrease which contribute to $8 Billion of our imports.
Coal can be exported to countries around the world. Many countries are shifting to coal as means of energy and this raises export opportunity for the coal exports too.
The labour cost in the mining industry is very low as compared to other parts of the world and essentially have higher profit margins.
The Tax rate is nil during exploration, mine construction and extraction phase.
WEAKNESSES
Serious lack of infrastructure facilities
Many government restrictive policies and not much help provided by the government.
Government not fulfilling there contracts.
There is no consistency in Government policy.
Low quality coal available mostly
Too much capital required to extract the coal.
Thermal energy would mean more pollution
OPPORTUNITIES
Expansion of energy base of Pakistan
Expansion of export base and reduction of oil imports.
Opportunity to boost lagging industries.
Growing demand of Coal
THREATS
Foreign involvement which might restrict local development
Restrictive policies and red tapism by government
Control of reserves by only a few major players
Oil Lobby being a very strong force in Pakistan.
Problem faced by this Industry
Lack of safety and security
Pakistan’s image and political situation is a deterrent to investment
Pakistan’s image and political situation is a deterrent to investment
The industry sustained a stab back in the recent years.
SWOT ANALYSIS
STRENGTHS
Pakistan has a very large coal reserve base only Thar coal can be used to make 40,000 MW of Electricity for the next 100 years.
Regional powers like China are very much interested in the project and are willing to pour billions of dollars in these projects if the Govt. of Pakistan issues sovereign guarantee.
Sector will essentially contribute to the wiping out of the difference in the electricity shortage.
It would stabilise the economy as oil imports are going to decrease which contribute to $8 Billion of our imports.
Coal can be exported to countries around the world. Many countries are shifting to coal as means of energy and this raises export opportunity for the coal exports too.
The labour cost in the mining industry is very low as compared to other parts of the world and essentially have higher profit margins.
The Tax rate is nil during exploration, mine construction and extraction phase.
WEAKNESSES
Serious lack of infrastructure facilities
Many government restrictive policies and not much help provided by the government.
Government not fulfilling there contracts.
There is no consistency in Government policy.
Low quality coal available mostly
Too much capital required to extract the coal.
Thermal energy would mean more pollution
OPPORTUNITIES
Expansion of energy base of Pakistan
Expansion of export base and reduction of oil imports.
Opportunity to boost lagging industries.
Growing demand of Coal
THREATS
Foreign involvement which might restrict local development
Restrictive policies and red tapism by government
Control of reserves by only a few major players
Oil Lobby being a very strong force in Pakistan.
Problem faced by this Industry
Lack of safety and security
Pakistan’s image and political situation is a deterrent to investment
Pakistan’s image and political situation is a deterrent to investment
The industry sustained a stab back in the recent years.