Pakistan Seeks Self-Reliance in Indigenous Fuel

Islamabad, Pakistan | February 02, 2009 by D-8 Secretariat

Pakistan says volatility in oil prices, environmental concerns have enhanced need for developing alternative fuel

Pakistani President Asif Ali Zardari on Monday asked the government to take measures on war footing to achieve self-reliance in indigenous fuel. Addressing a briefing on ‘Fuel Ethanol Policy’ at the Presidency, the president said it was important for Pakistan’s economic stability that it did not rely too heavily on imported fuel.

Zardari said the recent volatility in oil prices and environmental concerns had enhanced the need for developing alternative fuel such as ethanol and biodiesel. “The world is fast moving towards developing new fuel technologies and Pakistan cannot afford to lag behind,” he said.

The president said indigenously produced ethanol and biodiesel could help the country achieve import substitution besides avoiding oil price volatility, however, adding that caution must be exercised so that the food production was not adversely impacted while pursuing alternative fuel.

A member of the Planning Commission, Pervez Butt, highlighted strategic priorities for replacing domestic use of gasoline with biofuel in the next few years.

Butt said ethanol was environmentally friendly. He said although corn was a renewable resource, it had a lower energy yield than biodiesel (such as soybean oil) and dethanol. The meeting was told that like many other major sugarcane-producing nations, Pakistan enjoyed significant advantages in producing ethanol, including agricultural land, warm climate amenable to vast sugarcane plantations, and on-site distilleries that could process the crop immediately after harvest.

Finance Adviser Shaukat Tareen, Federal Minister for Industries and Production Manzoor Wattoo and Finance and Petroleum Ministry officials were also present.

Meanwhile, a delegation of a leading German industrial group, led by Dr Olaf Berlien, called on President Zardari and expressed interest in investing in joint venture projects in Pakistan. Berlien told the president that the industrial group was keen to bring direct foreign investment in the country in a number of areas, a government statement said.

He also informed Zardari that their group was among world’s largest steel producers and operated in steel, capital goods, and services. Zardari appreciated the group’s interest in investment in Pakistan and said the economic reforms of the country were creating an environment for the private sector to grow.

He said Pakistan had become an attractive destination for investment because of its liberal and investment-friendly policies.

D-8 countries, such as Indonesia, Malaysia, and Nigeria, are reknown as world’s producers of biodiesel, especially palm oil, which the first two countries are supplying up around 90% of total world production. However, the usage of palm oil is still relatively limited to edible items, and has not yet effectively explored for the usage in bio-diesel purposes. The challenge between food and energy needs is yet the biggest hurdle to be solved. Indonesia is on a continous research to explore the possibilities to use janthropa to cover this need, but the result has not been reached yet. D-8 Director, Amb. Kia Tabatabaee said that D-8 Organization is putting all its effort to support the development of this sectors in Pakistan, and implied that it can also learn from other countries to seek further potentials in this promising fields.

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