Pakistan Pest Analysis

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Because of some good steps taken by Nawaz Sharif’s government we decided to invest over money in Pakistan market. Good steps does not mean Pakistan is safe country now, good steps means that we saw huge improvement in security issues. Pakistan government will provide us security in order to complete and protect our project.

Market Infrastructure:

There are 3 public corporate WAPDA (Water and power Development Authority), PAEC (Pakistan Atomic energy Commission) and Pepco (Pakistan Electric Power Company). They are main producer of Electricity in Pakistan. They sell electricity to CPPA (Central power purchasing Agency) which transmit this energy through NTDC (National Transmission and Dispatch Company) to National Grid. Then there are 10 distribution companies know as DISCO they report to PEPCO. There is independence regulatory authority know as NEPRA (National Electric Power Regulatory Authority) there job is to take care of interest of investors)

Currently Pakistan has 3 operational Nuclear reactors Karachi 1 in sindh and Chashma 1 and Chashma 2 in Punjab. All three are producing 725MW of electricity. Pakistan is producing 65% by Thermal, 31.5% by hydropower, 3% by Nuclear and 0.5% by Wind and Solar.

Currently China is investing 46$ billion in different sectors in Pakistan out of which China is just spending 36$ billion in energy sector which includes dams, solar power park and coal power plants which will all together produce 17000 Mega watt of energy. In 2013 China already spend 10 Billion$ in nuclear sector in Kanupp 2 and Kanupp 3 power plants, each of them are producing 1100MW. China is doing huge investment in Pakistan but it may take around 3-5 years to complete their projects

Buyer Characteristics:

In Pakistan power producer sell electricity to CPPA (Central Power Purchasing Agency) which transmit this energy through NTDC (National Transmission and Dispatch Company) to National Grid. Then there are 10 distribution companies know as DISCO they report to PEPCO. There are 20 independence electricity producers in Pakistan who sell to CPPA as well. Now each province has right to generate, Transmit and Distribute electricity by itself. As I mention above our target market is Baluchistan and KPK. Baluchistan has 13.16 million residences while KPK has 26.8 million residences, so our target market consists of 39.96 million people. Electricity demand in Baluchistan is 1650MW but Grid station just transmit 650MW because of which residence of Baluchistan is facing 12 to 18 hours of load shedding on daily basis. KKP is getting 1500MW from federal government. Currently KPK’s provincial government is building small dams which will produce 16MW, 27MW and 80MW which are insufficient to meet current requirement if KPK consumers. So our mission is to produce 1050MW in Baluchistan and 1050MW KPK in order to meet the requirement of residence of Baluchistan and KPK which will be our huge achievement. In KPK PESCO (Peshawer electric supply company) is responsible for production, transmission and distribution on Provincial level. Whatever we will produce we will not sell it national Grid we will just sell it to provincial grid which will just fulfill the requirement of Baluchistan and KPK.

Competitive Rivalry:

Cameco do not have like huge competition in Baluchistan and KPK because currently whatever they produce they sell it to National grid then federal government distribute electricity equally to provinces. But now Federal government gave Production, Transmission and distribution rights to provincial governments which means that provincial government has to build their own power stations in order to take advantage from these rights. As I mentioned above that Baluchistan demand is 1650MW and they are getting 650MW from federal government and KPK demand is 3200MW and they are getting 1500MW from federal government. Currently KPK’s provincial government is building small dams which will produce 16MW, 27MW and 80MW which is not enough to fulfill the requirement. So Cameco will build 1050MW Nuclear power plant in both Baluchistan and KPK provinces which will cost us around $9 billion. Our mission is to provide all Domestic, Commercial, Industrial, Agricultural, Public Lightning and Bulk supply Sector.

References:

http://www.cssforum.com.pk/css-compulsory-subjects/pakistan-affairs/98181-martial-laws-pakistan.html

https://www.transparency.org/research/cpi/cpi_2005/0/

http://www.world-nuclear.org/info/Country-Profiles/Countries-O-S/Pakistan/

http://www.technologyreview.pk/demystifying-pakistans-energy-crisis/

http://nation.com.pk/blogs/06-Feb-2015/balochistan-is-the-biggest-victim-of-load-shedding-in-pakistan

http://www.sersc.org/journals/IJEIC/vol4_Is3/2.pdf

https://en.wikipedia.org/wiki/Economy_of_Pakistan

http://www.dawn.com/news/1110248

https://en.wikipedia.org/wiki/Nuclear_power_in_Pakistan

http://www.ucsusa.org/nuclear-power/nuclear-power-technology/how-nuclear-power-works#.VkT_mnarSM8