The Petroleum and Natural Resources Ministry has asked the Commerce Ministry to revise the import policy regarding used coal-fired boilers to encourage the industrialists to convert the furnace oil-fired boilers to coal fired boilers.
An official source told Business Recorder that the industrialists wanted to import second-hand boilers, but the Import Policy 2003-04 was mum in this connection.
The Import Policy did not contain the provision to import more then five-year-old boilers, the source said.
He said that the government with the help of CIDA was trying to work out a plan for the conversion of the processing industries from furnace oil into coal. The government was making efforts to make it obligatory for the industries to switch over from oil and gas to coal and the conversion of cement industry from the furnace oil to coal was already underway.
Pakistan spends billions of dollars annually to meet its primary energy requirements. Oil and POL import bill was expected to increase further owing to inadequate gas supply and rise in crude oil prices.
The main hurdle in the conversion of the processing industry was high price of the new coal-fired boilers as the industrialists in Pakistan were not willing to purchase new expensive boilers, the source added.
He said that in a letter the Petroleum Ministry has asked the Commerce Ministry to revise Import Policy 2003-04, especially for the import of used boilers.
The ministry has also asked that the age of new boiler was about 50 to 100 years across the world so it would be beneficial if the industry was allowed import of 10-year-old second-hand boiler, the source said.
The ministry has proposed that second-hand coal-fired boiler was available in Europe, but could only be imported after the revision of the Import Policy.
The ministry also proposed that 10-year-old boiler should be allowed for import after the certification of its good condition.
The source said that the Commerce Ministry has forwarded the Petroleum Ministry's point of views to the Industries and Production Ministry and would finalise the issue after receiving their reply.