A maize-based ethanol production plant worth $100 million, planned for a site near Port Qasim in Karachi, is said to be in the doldrums. According to a press report, a foreign firm behind the project was all set to pursue the project after having been in close contact with the Alternative Energy Development Board, the Board of Investment, and the Planning Commission of Pakistan to sort out various legal and financial matters.
The firm is now reluctant to invest in this country due to a poor law and order situation and political instability although it had done a significant amount of legwork. Indeed, it would be sad to see a foreign firm exhibiting reluctance to invest in any energy project in this country - but not in this one.
While there are no two opinions on that the government needs to redouble its efforts to generate energy from alternative - preferably renewable - sources, it is also important to weigh carefully the pros and cons of individual projects. The maize-based ethanol fuel may be gaining popularity elsewhere, particularly in the US, it does not seem to be the right answer to our requirements.
The fact of the matter is that save for the bio-fuel industry, people worldwide are having second thoughts about maize and other plant-based fuels at a time food shortages and rising prices have given way to new concerns about poor nations' food security.
Even though experts attribute the present shortages to droughts in major grain producing countries, they also say the increasing demand for better and more food in China and India is going to continue to cause food scarcity in the years to come.
True, ours is an agrarian economy and hence it is only natural for the government to explore any possibilities that might exist in the sector for meeting another pressing requirement: energy generation. It is also true, though, that rising food prices and increasing scarcity of irrigation water are posing new challenges to our economic planners and strategists.
They, of course, must give top priority to ensuring food security. To avert energy shortages in the future, they must look at alternative sources such as wind and solar power with sustained vigour since they do not come at the cost of other basic human needs.