PRESIDENT Pervez Musharraf has announced that oil refineries would be set up at Gwadar to serve as a regional trade hub and provide cost effective fuel for sustaining country’s higher economic growth. Until now, experts preferred Karachi and other adjoining coastal areas for establishment of petroleum refineries for a number of reasons. Pakistan largely depended on imported petroleum products and crude oil for refineries and coastal areas around Karachi were considered economically feasible as we had port facilities in the metropolitan city to handle cost effective crude imports. With the establishment of a deep-sea port at Gwadar, the focus has to shift to the facilities now available at the western corner of Pakistan. Earlier, a huge coastal refinery was planned to be set up at Khalifa Point, Hub which is roughly 40 kilometers to the north of Karachi. For a variety of reasons, the project designed to be launched with the collaboration of Iran could not see the light of the day.
Pakistan’s current requirements of petroleum products stand at 20 million metric tones per annum rising at the rate of 7%. With the accelerated economic growth the country would need to expand its existing reining capacity to reduce the bill on import of finished petroleum products. The country presently has an installed refining capacity of 11.5 million metric tones and addition of one or two refineries to increase this capacity would help save at least U.S. 470 million per annum. Of course, refined products of proposed refineries at Gwadar would require a oil pipeline for their transportation to main consumption areas but the cost involved will more than be justified in terms of the benefits that would eventually accrue to the national economy. Already, during his recent visit to Japan, Prime Minister Shaukat Aziz has met top executives of multinationals who have evinced interest in investment in the refining sector in Pakistan. President’s announcement would indicate that Pakistan will provide infrastructural facilities for prospective investors. Oil refineries require huge funds and the release of a report by the International Finance Commission (IFC) on Thursday that Pakistan was much better placed for investment would give the prospective investors greater confidence and needed comfort.
The Government of Pakistan should however ensure that state of the art refining technologies are imported. We can ill afford to have first generation, old refineries. In the past junk has been imported to put up the refineries by some investors and the resultant cost to the economy is now being felt. Pakistan must encourage installation of deep conversion refineries based on latest technology to refine crude oil for maximum benefits. A strict watch shall have to be kept on unscrupulous elements so that old refineries do not find their way into the country. Such units could do more harm to he economy than advance the cause of accelerated economic growth.

Riddle and mystery inside an enigma

RUSSIAN President Vladimir Putin has always been a mysterious character — a suave, soft-spoken person with a tough and firm stand on many things. In many ways, he is typical of Russia — warm and friendly people with a stern, rigorous regime. Of all the big nations fighting terrorism, Russia has been the most relentless and uncompromising. It has also faced the most severe criticism, notably from the West, of trying to trample on human freedoms and disregarding human rights. Nevertheless, it has always gone ahead with what it deemed right. Putin is a perfect example of that Russian characteristic. Just two days back, in a three-hour live, television call-in show, Putin fielded questions on issues ranging from the economy to the situation in the war-torn republic of Chechnya. According to Kremlin officials, more than 700,000 questions were submitted via a toll-free call-in centre, live video-link, e-mail and text messages.
While most questions focused on social issues — such as pensions, wages, jobs and healthcare, one questioner asked the President if he would consider running for a third term in 2008, to which the latter replied that such a move was forbidden by the Russian Constitution, and he had no plans to change the constitution. But while saying that his task is to create a strong Russia and not serve the Kremlin forever, he suggested he would “find a place in the ranks,” fuelling speculation with his cryptic statement that he might be seeking out ways to retain some influence even after his term is over in 2008. Quite characteristically, more was left unsaid than explained. Journalists and political analysts, whose job is to read between the lines, might already be at work.
But perhaps some of the most uncomfortable questions came from Grozny, the capital of Chechnya — the president might have been well prepared for them, going by his responses. The sole foreign policy question concerned Russia’s long-standing territorial dispute with Japan over the Kuril Islands. Putin ruled out negotiations with Japan over the isles, saying they belong to Russia. Questions on economy were perhaps the most favoured ones. While Putin’s PR skills are no doubt admirable, one has to often scratch the surface to get the message. As he utilised the mass media to get his point across, many questioners could be left wondering if there was a point at all. Winston Churchill had once described Russia as a “riddle wrapped in a mystery inside an enigma.” The same could certainly be said of Vladimir Putin as well his role after 2008.

—Khaleej Times