The news from the Oil and Gas Development Corporation Board of Directors, and from the report of Sazgar Engineering Limited to the Karachi Stock Exchange indicate that while fossil fuels and renewables are an ús-or-them’ clash for environmentalists, they are both important factors in the Pakistani industrial landscape, or rather in the architecture of its industrial development. Pakistan needs industrial development, so that its people can escape the poverty they are trapped in, and its government the debt trap it mired itself into. It may not be able to afford an environment, so urgent is its need for development. A recent example are the objections being made by the Asian Development Bank. the lead lender, to the conversion of the under-construction Jamshoro power plant from imported coal to Tharparkar coal. The conversion would lead to massive foreign exchange savings, but would be polluting.
The OGDCL BoD announced a final dividend of Rs 4.00 per share, after an interim dividend of Rs 6.10 per share, the final dividend declared has been Rs 10.10 per share. Oil and gas exploration is key to the Pakistani economy, for any discoveries, as were made this last fiscal year, will reduce the country’s foreign exchange burden. OGDCL is also producing oil, gas and liquefied petroleum gas, and has reversed the previous trend of declines in oil production of 20 percent and 24.6 percent. OGDCL ‘s production and discoveries reduce Pakistan’s fuel import bill. Meanwhile Sazgar, which already makes vehicles under licence from three Chinese manufacturers, has intimated the KSE that it intends to start production of New Electric Vehicles by the end of next year. Here too environmentalists might look askance at electric vehicles which are charged with power produced by using oil-burning thermal plants.
The real change (environmentally) will come when electric vehicles are charged by solar power. That will bring about a true transformation of the whole transport sector, not just oil and gas. Meanwhile, though, both OGDCL and Saazgar are bust making money, thereby also proving that while concern for the environment is important, an economic argument for better behaviour matters in the end. The solarization by domestic consumers illustrates this point: people vote with their pocketbooks.
