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Gas supplies being diverted to inefficient Gencos

Under the new priority set by the federal government, natural gas supplies are being diverted to inefficient power generation companies whose efficiency rates are as low as 25 percent, said sources. Furthermore, these thermal plants were run without flow measurement metres.

The plan pushed by the Ministry of Water and Power will not improve power generation substantially but surely deprive other efficient gas users of this energy source, claimed sources. The Ministry of Water and Power, which has failed to resolve the power crisis issue in the last many years, has not succeeded in getting its plan approved to monopolise the use of gas, said sources.

Natural Gas Load Management, approved by the Economic Coordination Committee (ECC) the other day, was submitted by the Ministry of Petroleum and Natural Resources for approval.

In the backdrop of power outages, the Ministry of Water and Power had requested for enhanced gas supply to power plants on the Sui Northern Gas Pipelines Ltd (SNGPL) system. The ECC decided that first priority will be given to domestic and commercial sectors. The power and general industries will be accorded second and third priority, respectively.

While the cement sector will be on fourth and CNG sectors will be on fifth priority.

The bureaucrats of the Ministry of Water and Power believe that every molecule of gas should belong to power sector at the expense of other important sectors of economy, said sources, adding that inefficient and gas-guzzler thermal plants and wasteful distribution systems with severe line losses on the power grid system would be one of the most unwise recipients of gas supplies.

However, the federal government has given the green signal to divert gas supplies to thermal plants, most of which are highly inefficient.

According to a technical audit study of Jamshoro, Guddu and Muzaffargarh thermal power stations, conducted in 2011 by Hagler Baily Pakistan, several gas turbines showed net efficiencies of 25.3 percent to 32.1 percent.

All the steam units of TPS Jamshoro and TPS Muzaffargarh are dual fuel plants having gas and residual fuel oil (RFO) firing facilities except for unit 1 of Jamshoro that has fuel oil firing capability only. TPS Guddu uses medium calorific raw gas from Mari and Kandhkot. Steam units three and four at Guddu can also operate on mixed firing with RFO as the secondary fuel.

Most worryingly, as per the report, due to poor maintenance of the power stations, GENCOs have lost nearly one-third capacity and 17 percent thermal efficiency due to plant degradation.

The average decline in the net efficiency of TPS Jamshoro is about 20 percent from the design efficiency of the power station. The average availability of the power station was 84 percent in FY2010 and 72 percent in FY2011 till November 2010. However, if this availability is corrected for lost output of the plant due to degradation, the availability factor would drop by 35 percent, indicating poor performance of the plant, said the report.

TPS Muzaffargarh is operating with an overall capacity degradation of 40 percent. Capacity degradation for the units varied between 20 percent for unit two to 63 percent for unit six. The power station is facing an overall degradation of around 18 percent in its net efficiency.

Based on the audit team’s observations, it was found that no credible measurement system exists for natural gas supplied and consumed at the Guddu power station and most other allied facilities of power generation companies.

At Guddu, the gas supplied to residential colony is not even measured.

The measurement instruments are not calibrated, non-functional, or absent, disclosed the audit report.

According to sources, the Ministry of Petroleum has looked at equitable solutions for gas consumption for all sectors, while the

Ministry of Water and Power is not considering the well being of other sectors of economy.

Gas consumption by power sector is highly inefficient with many power plants utilising 20-25 percent of their capacity. The Ministry of Water and Power is still not endorsing Thar coal reserves and imported coal, which has an unlimted capacity to produce power.

Conversion of existing thermal power plants will pre-develop the market for new coal mines, hence eliminating the market, especially for development of Thar coal.

But nothing concrete is being done on this important developing front.

For conventional steam turbine thermal units, the only possible option is to convert them to cheap fuel of coal, said sources.

The benefit of converting furnace oil plants would be through savings on fuel cost component and expedite import of gas or use alternative fuels available such as LNG for gas turbine or reciprocating engine, they added.

One efficient use of gas, as per an independent study, can be manufacturing of urea.

The urea manufacturing process is in fact a value addition process in which gas is not simply burnt like other users.

As per studies, urea is the most expensive form of energy that is imported costing around $23/MMBTU, whereas RFO and LNG would be 30-50 percent less expensive than urea on a MMBTU or heating value basis.

Hence, power can efficiently be used by importing fuel, said sources.

When contacted, Spokesman Ministry of Water and Power Tanvir Alam said that only efficient thermal plants would get priority in view of gas supplies under the new arrangements.

Cabinet approves IP gas pipeline project

The federal cabinet, rejecting any external pressure, on Wednesday gave final approval to the Iran-Pakistan (IP) gas pipeline project. The cabinet met here with Prime Minister Raja Pervaiz Ashraf in the chair.

After the meeting, Federal Minister for Information and Broadcasting Qamar Zaman Kaira apprised the media that the cabinet considered and gave approval to an agreement between the Pakistan government with the Government of Iran on the engineering, procurement and construction work along with financing for the IP gas pipeline project (Pakistan segment).

“A committee consisting of ministers for finance, law, justice, petroleum and national resources and governor State Bank of Pakistan was formed to further analyse the project,” Kaira added.

He said the cabinet was informed that the construction of the IP gas pipeline would be completed by January 2015 and Iran would give Pakistan $500 million in two phases for the completion of the project.

The cabinet declared the IP gas pipeline project to be in the national interest, adding that the project should be completed as soon as possible. It was also decided that instead of relying on foreign aid, the project be completed through mutual cooperation.

The cabinet considered and accorded its approval to Ombudsman Institutional Reforms Bill 2013 subject to vetting by the Ministry of Law.

When asked about the tentative names for the caretaker set-up, Kaira replied that it was still under discussion and would be decided soon in accordance with the Constitution. He further said that assemblies would be dissolved before March 16 and the government was fully committed to holding free and fair elections.

AFP adds: The cabinet also approved a deal transferring from Singapore to China the management of the strategically located deep-sea Gwadar Port on the Arabian Sea.China provided about 75 percent of the initial $250 million in funding for the construction of the port in Gwadar.

It is currently being operated by Singapore’s PSA International, but needs further development work to become fully operational. “The cabinet today gave approval to transfer Gwadar Port operations from Port of Singapore to Chinese Overseas Port Holdings Limited,” Kaira told reporters.

“Both the companies have settled their deal,” he said, without giving a timetable for the transfer.Kaira said that Singapore’s PSA International could not develop or operate Gwadar “as desired” and said he hoped that under a new management, the port would soon contribute to Pakistan’s flagging economy.

“The Chinese will make more investment to make the project operational,” Kaira said. NNI adds: The information minister said that the cabinet also gave approval to Strategic Trade Policy whose details will be announced today (Thursday).

He said that the cabinet was informed that during July-December 2012‚ inflation remained 7.9‚ which was the lowest in recent history of the country.He said the cabinet decided to empower the office of Ombudsman to institutionalise the process of accountability and provide speedy justice to the people. He said that the cabinet decided to give administrative and financial autonomy to the office of Ombudsman.

He said that previously eleven different departments were carrying out accountability while now all these departments have been streamlined under the office of the Ombudsman. He said that departments will be bound to provide relevant information to the office of the Ombudsman within 15 days failing which disciplinary action will be taken against them.

The minister said that the office of the Ombudsman will decide appeals within 45 days and it will also be authorised to review its decisions. He said that appeal against the Ombudsman’s decisions can only be made to the President within 120 days.Qamar Zaman Kaira said that the tenure of the office of the ombudsman will be four years and the method for his removal will be the same as that of the judges of senior judiciary.

New blow to power consumers: pay Rs1.33 more per unit

The National Electric Power Regulatory Authority (Nepra) has dealt another blow to power consumers by raising the power tariff by Rs1.33 per unit under the fuel adjustment mechanism.

The regulatory body approved this hike in tariff during the hearing held here on Tuesday on a petition of the Central Power Purchase Agency (CPPA).

During the hearing, the CPPA came up with the argument in favour of increasing the power tariff that the regulator had fixed the reference price of fuel cost at Rs7.59 per unit in December 2012, but the fuel cost incurred on generating the electricity remained at Rs8.95 per unit. In the wake of a decline in hydro generation, theCPPA had to increase its reliance on generating more electricity from furnace oil and high-speed diesel.

In December it paid Rs2.4 million to HUBCO as bonus, and Rs50.50 million in the head of partial load adjustment charges, and Rs390.10 million to KAPCO in the head of fuel difference charges.

However, Nepra mentioned that the CPPA sold 6.330 billion units of electricity in December to electric power distribution companies (Discos) on which the fuel cost incurred was Rs55.8250 billion. The CPPA responded to Nepra arguing that transmission loss had increased by 0.61 percent to the limit fixed by the regulator owing to which the system had faced an additional loss of Rs340.30 million.

According to Nepra, the Islamabad High Court has already barred the government from charging the fuel adjustment surcharges. The notification in terms of raise in power tariff will be issued once the Islamabad High Court will give its detailed verdict.

Wapda to initiate three hydropower projects

With a view to meeting the ever-increasing needs of electricity and water in the country, the Water and Power Development Authority (Wapda) is going to start construction work on three more projects in couple of months, as all pre-requisites for initiation of these projects are almost complete.

According to a statement issued Tuesday, with a cumulative generation capacity of about 1540 megawatts and gross water storage capacity of 250,000 acres feet, these projects include two hydropower projects namely Tarbela 4th Extension and Keyal Khwar, and one medium-sized dam i.e. Naulong.

The projects are part of Wapda’s least cost energy generation and water storage plan, under which 26 projects of more than 21,000 MW power generation and 13 MAF water storage capacity are in various phases of their implementation.

The 1410 MW-Tarbela 4th Extension Project is being undertaken as the 4th extension of Tarbela hydel power station. Three generating units, 470 MW, each will be installed to raise the capacity of Tarbela power station from 3478 to 4888 MW. Annual energy contribution of Tarbela 4th Extension Project has been estimated at 3480 million units and annual benefits at Rs30 billion.

The World Bank is providing $ 840 million for construction of the project. Keyal Khwar hydropower project is located on Keyal Khwar, a right tributary of River Indus in Dasu district of Khyber Pakhtunkhwa. Power generation capacity of the project is 122 MW with annual energy contribution of about 426 million units of low-cost electricity to the National Grid with estimated annual benefits of about Rs3.5 billion.

Naulong Dam is located on Mula River in Jhal Magsi district of Balochistan. The project, with a water storage capacity of nearly 250,000 acre feet, will irrigate 47,000 acres of land. In addition, 4.4 MW electricity will also be generated. Benefits of the project have been calculated at more than Rs2.5 billion per annum.

Wapda has already started construction work on Golen Gol hydropower project and Nai Gaj dam. The 106 MW-Golen Gol hydropower project is being constructed on the River Golen Gol, a major tributary of the River Mastuj in Chitral district of Khyber Pakhtunkhwa.

On completion, the project will generate about 436 million units of electricity annually. Likewise, Nai Gaj Dam Project is being constructed across Gaj River in Dadu district of Sindh. The 194 feet high dam will store 300,000 acre feet of water to irrigate about 40,000 acres of land. Besides, the project will also generate 4.2 MW electricity. Annual benefits of the project have been estimated at about Rs3.5 billion.

Moving towards a green economy

By Zain M Khan

The United Nations Environment Programme’s Green Economy Initiative is a sustainable development model. It envisions the transition to a green economy as a pathway to low-carbon, climate-resilient development through greater economic opportunities and improvements in human well-being and social equity. It emphasises on transition to a green economy by providing opportunities for developing countries to find global markets with low environmental impact. Broadly, six economic sectors are considered to have a high export potential for developing countries in transition to a green economy. These are: agriculture, fisheries, forests, manufacturing, renewable energy, and tourism. Within these are diverse export markets for goods and services, including green food and beverages, consumer and industrial products and services, energy and tourism. Sustainable green trade opportunities in industries are created by using energy-efficient and closed-cycle manufacturing approaches to production methods in industries. In 2010, the global organic market increased to $59 billion and is forecasted to reach $96.5 billion in 2014. Almost 80 percent organic products originate in developing countries, but 97 percent of their consumption is in developed countries, creating substantial export opportunities for developing countries. High-value organic products fetch high price premiums that ensure higher incomes for farmers. Developing countries higher on the technology curve are already exporting renewable energy equipments, such as solar panels and wind turbines.

However, this set of new opportunities is not without supply-side constraints. For a country like Pakistan, these cover weak domestic trade infrastructure and non-tariff-barriers, unilateral border adjustment regimes and a crisscross of international environmental, climate change agreements.

In Pakistan, we need to evolve a comprehensive defensive-cum-offensive green trade strategy. To start with, we need to identify export opportunities associated with the transition to a green economy through a comprehensive study identifying export opportunities and obstacles to a green economy. The path to a successful transition hinges upon the capacity to innovate. Several countries have identified constraints to spur innovation. Rising political and economic costs of fossil fuels spurred the US to exploit shale gas by developing the fracking technology, while the Japanese industry successfully invented energy-efficient technologies in 1980s.

Pakistan has both offensive and defensive trade and policy interests. The first defensive interest relates to concerns that a green economy transition could cause our export industries to experience declining demand or competitiveness challenges. To address this, we need technical assistance in developing our own environmental regulations, standards, labelling and certification processes. Protection from other countries’ unilateral measures, such as border carbon adjustments is required. Due to subsidies and domestic support mechanisms used by developed countries, which are our export markets, our green exports cannot compete with theirs. We also need technology transfer to promote green exports and liberalisation of environmental goods and services. Last but not the least, help in trade promotion and export financing is of significance.

In agriculture, we have a defensive interest in averting further downsliding from negative ecological impacts on conventional agriculture production. Our offensive interest is in promoting green exports in which we have competitive advantage, such as textiles, organic farming, spices, etc. In fisheries, our defensive interest is protection against intensive fishing practices, supported by large-scale subsidisation by our export markets that make our fish exports uncompetitive.

In manufacturing, our defensive interest is in our ability to withstand protectionism by other countries, while our offensive interest is enhancing our ability to export renewable energy products, forest products, chemicals, handicrafts, textiles, clothing and footwear, mining, etc.

In renewable energy, we can export renewable energy equipment and especially their inputs, not only for exports but also for the more important purpose for energy security in the context of renewable energy.

Other capacity measures include development and harmonisation of standards and labelling, and certification procedures. There is a great need for technology transfer for rapid technology diffusion for low carbon development. We can leverage the OECD-WTO aid for trade pool of funds for green commodity production of energy products and components for export. This would have to be complemented by prudent financial and technical assistance measures. An example may be cited of green trade financing initiative in Korea where the EXIM Bank plans to develop a Green Pioneer Programme that provides $20 billion annually until 2020 to 200 selected green enterprises in the field of renewable energy. Fiscal instruments can include subsidies for renewable energy technologies to help these technologies compete with fossil fuels and imported energy products.

The writer for the UN Environmental

Programme. zen_kent@hotmail.com

SNGPL to restore 25pc gas supply to textile industry from Feb 1

The Sui Northern Gas Pipelines Limited (SNGPL) has agreed to restore 25 percent gas supply to the textile industry with effect from February 1, according to a statement.

It has been decided in the meeting of the management of the All Pakistan Textile Mills Association (Aptma) held on Saturday with Dr Asim Hussain, adviser to the prime minister on petroleum and natural resources, it said.

Aptma was represented by Ahsan Bahsir, chairman, Shahzad Ali Khan, chairman of Aptma Punjab, and Gohar Ejaz, group leader of Aptma, while Arif Hameed, managing director of SNGPL, assisted the adviser.

The gas supply to the industry remained suspended since December 5, 2012. The electricity supply was also disconnected by the ministry of water and power from December 22 to January 1, resulting in closure of around 40 percent of the installed capacity in Punjab, according to the statement.

Industry exports fell by $1 billion due to the energy crisis during the first six months of the current fiscal year. Even if the government ensures uninterrupted energy supply from now onwards, the industry still can touch $15 billion exports in the fiscal year, it said.

The industry has already achieved $6.5 billion exports in the first half of the current fiscal year and possesses the potential of exporting $1.5 billion textile products per month ahead to achieve remaining $8.5 billion exports.

This will have a positive contribution towards employment, production and the balance of payments, it said.

The industry has suffered, particularly in Punjab, heavily due to gas supply suspension from December 5 to-date and the electricity supply suspension from December 22 till January 1 until President Asif Ali Zardari directed the ministry of water and power to ensure 16 hours a day uninterrupted electricity supply to the mills in Punjab, it added.

Fuel fuss

Shortage of gas needs to be tackled as early as possible to save CNG sector

By Dr Noor Fatima

What is next for Gas industry? Development of Compressed Natural Gas (CNG) infrastructure has a history of proven success in many Western and Asian countries. The current market conditions in Pakistan indicate that there exists potential for renewed and expanded need for CNG infrastructure, policies and plan.

The CNG industry has an important role to play to give energy sector security in the face of rising oil prices and the current economic downturn in the country. Today North America, Asia, and Europe are great natural gas market.

The increasing market is also cause of political tensions between suppliers, who exert their resources as a political tool, and consumers, who worry about the cost and security of this supply. This market has more distortion as natural gas is unlike oil, which is traded at the same price everywhere. The CNG is competing with natural gas usage in electricity generation and industrial use. If a product or company gets more expensive or exploitative the other always drives it out of the marketplace, which is what happened in the Pakistan energy market. This might come true for the CNG market also as they have increased their margin too high. Economists usually frame the question of equity or distribution within the context of a trade-off with efficiency or growth.

Presently, in addition to electricity the CNG sector is posing a great challenge to the government. The doctrine of privatisation is based on the belief that private sector will perform more efficiently than public sector and it was pursued by the IMF and the World Bank in 1990s for Pakistan mainly for power sector. In Pakistan, the outcome of privatisation policies has not been very popular. The beneficiaries of privatisation policies are not general public, but elites in business and power corridors. So many failures leave us with a basic question that should we believe in market economics?

Pakistan tops the countries that use the CNG as an alternate fuel for vehicles. Argentina and Brazil are the two other countries with the largest fleets of CNG vehicles. Many private investors also came up for investment in the sector and Oil and Gas Regulatory Authority (OGRA) was also established for the regulation between the CNG investors and the consumers. According to the Competition Commission of Pakistan, over 2.5 million vehicles were converted to the CNG which means 35% of the total vehicles are running on CNG. Since the tariff of the CNG was fixed half than the petrol prices, till last year, therefore it attracted many investors with an investment of over 800 million dollar.

The gap between demand and supply of the gas led to a severe crisis. Pakistan’s total gas consumption is eight billion cubic feet per day (bcfd), whereas total production is only four bcfd — shortfall of 50 percent.

The CNG dealers are pressuring the government to increase the per kilogramme price of the gas. It is, however, very strange that the state-run Pakistan State Oil’s chain of retail CNG stations have also stopped supply of gas to consumers. The Petroleum Ministry seems to be either helpless or, for that matter, supporting the crisis in the interest of the two per cent elites of this country.

Despite attractive investment in the sector, the question is what brought this catastrophic situation that shook the whole sector. Whether it was myopic decision of the government in 2004/05 to allow the CNG as an alternate fuel or was it policy implementation failures.

One of the problems, for sure, was the issuance of licenses without a planning of demand and supply. The gas pipelines installed in 1970s for the domestic users have now been linked to the petrol stations and CNG stations, affecting the efficient supply of gas. Shortage of gas needs to be tackled as early as possible, otherwise the oil consumption will increase, causing pollution and huge burden on national exchequer.

According to sources in the SNGPL, the current annual production of CNG is increasing by 7% against growth in demand of nearly 40%. This shows that the annual shortfall of CNG is more than 400%. Likewise, the total output of gas pipeline companies in the country is around about 2,000 million cubic feet per day (mmcfd), while consumption is 2,800mmcfd.

The Author is presently working as Chairperson of International Relations & Politics of International Islamic University

Govt decides to generate 3,000 MW electricity from sugarcane bagasse: Mukhtar

Minister for Water and Power, Ch Ahmed Mukhtar has said that 3000 MW cheaper electricity would be generated through sugarcane bagasse on fast track basis and investors would be facilitated and encouraged. He said that necessary amendments would also be made in the existing co-generation and Renewable Energy policies to make it simplified and investors friendly. Presiding over a meeting on fast track development of bagasse based power generation projects here Wednesday the minister said that the government was utilizing all resources to end the energy crisis and the power generation from bagasse would be another step to produce electricity from indigenous resources.

He appreciated the PSMA for taking interest in the bagasse based power projects and assured to provide full cooperation.

Mukhtar said that upfront tariff would be given for these projects. It is also the desire of the President Asif Zardari that sugarcane bagasse should be utilized for cheaper power generation. Initially 1500 mw would be completed on fast track basis, he added.

The meeting reviewed in detail the existing co-generation and Renewable Energy policies and discussed various proposals to simplify it in order to get benefit at the earliest.

The meeting observed that the necessary amendments in the existing policies would help alleviating the power crisis in the country. It was decided that the bagasse based projects would be processed by AEDB under RE policy. A committee was also set up to finalize the recommendations within one week in consultation with all the stakeholders so that the approval taken from the competent forum to start the projects.

Earlier, the meeting was briefed by AEDB and PSMA that Pakistan is the 5th largest producer of sugarcane, produces 50 million tons of sugarcane annually, yielding over 10 million tons of bagasse. Power generation from bagasse would not only reduce the furnace oil import even save 33 to 49 billion of foreign exchange per annum. The country has 87 sugar mills with a capacity to generate 3000 MW electricity from bagasse in winter season.

Additional secretary Ministry of water and Power, MD PPIB, MD NTDC,CEO AEDB, JS Power, JS Entities, a delegation of Pakistan Sugar Mills Association (PSMA) headed by Shunaid Qureshi, senior officials of AEDB, Ministry and Food Security also attended the meeting.

Energy crisis diverts $1bn export orders from Pakistan

Textile industry saw helplessly export orders worth $1 billion diverted to other destinations like Bangladesh and Sri Lanka as it lost more than one third of its production capacity during December and January due to power and energy crisis.

A number of Christmas orders for bed wear could not be executed due to unforeseen power disruption for 10 days in December, said Ali Asghar, former chairman of Pakistan Textile Exporters Association. He said the gas shortages were envisaged but never before was there a complete power shutdown for 10 days.

Chairman Pakistan Hosiery Manufacturers Association Adil Butt said that past two months have been devastating for the value added exporters. He said impact on exports because of worst ever power shortage would be visible in the export statistic for the month of February and March. “There is no dearth of export orders as Pakistan remains the cheapest source of knitwear but we accept orders after discounting for energy shortage,” he said.

He said Pakistani exporters do not want to default on confirmed order that is why they refuse orders that are beyond their available capacity. This time around unfortunately we were forced to default because of skewed government priorities that denied power to exporting industries. He said the industry got gas for five days in past 54 days. He said there was no electricity from December 21-31 and after that electricity is being provided for 12 to 16 hours a day.

Leading spinner and value added exporter M I Khurram said that 80 percent of the spinning capacities of the country are in Punjab. He said due to reduced capacities the availability of yarn is becoming suspicious even for industries in Sindh where there is no shortage of energy. He said in past five weeks the yarn rates have increased by 6 to 7 percent.

Chairman All Pakistan Textile Mills Association (Aptma) said the power sector is being managed by non-professionals that take decision on whims to ensure supplies to the domestic consumers. He said supplies to major industries with independent feeders and gas generators were completely suspended for 10 days. He said the secretary ministry of water and power assumed that these industries would be able to generate power from alternate fuel from their gas generators. Referring to the secretary, he said had she done her home work properly she would have known that gas was not available and only 20 mills could produce power from their gas generators using furnace oil as alternate fuel. He said another 30 have the facility to change to diesel as alternate fuel to gas. He said rest of 170 mills has no alternate arrangement if the gas supply is suspended.

“Export losses cannot be recouped but further losses could be averted if the industry is ensured 24 hours electricity and 5 days a week gas from February 1, as promised by the president of Pakistan,” said Gohar Ejaz group leader Aptma. He said he is leading a high level Aptma delegation to Islamabad on January 28 to ensure that the promised power and gas are restored.

He said the delegation would meet the minister for water and power Ahmad Mukhtar and advisor to the prime minister on petroleum Dr Asim Hussain and make sure that the promise made by the president is honored. He said the Aptma delegates would remain stationed in Islamabad till the power and energy supplies are fully restored.

Gohar said Pakistan would not need IMF assistance if full power and energy is assured to the textile industry. He said fortunately Pakistan enjoys competitive advantage over its competing economies. He said everything produced by this industry can be easily exported. He said with full power and gas supplies and full capacity utilisation the textile exports could touch $18 billion.

PC to use Norwegian fund in power sector

The energy wing of the planning commission of Pakistan has prepared project proposals to avail funding under the Norwegian grant assistance programme (Phase-II) through joint collaboration with Norwegian institutes, sources said.

The purpose of the grant assistance programme is to improve capacity, competence, and competitiveness in relevant Pakistani and Norwegian institutions.

The above purpose will be achieved by matching Pakistani and Norwegian institutions for joint project development and implementation in sectors that are strategically important for Pakistan to achieve its national goals, as well as meet international commitments, and where Norway can offer cutting-edge expertise.

The programme will contribute to improve internal and external performance and enhanced technical and managerial competence mainly in public sector institutions, but not excluding non-governmental and private sector organisations in Pakistan.

While primary focus of the programme remains on capacity-building of Pakistani institutions, the programme recognises that capacity-building of the Norwegian partner institutions could also be an equally important component to create an environment for long-term and self-sustaining cooperation.

The planning and development division (P&D) of the planning commission has the overall responsibility for the administration of the programme.