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Chapter # 10

Industries of Pakistan
1. Power Industry
2. Textile Industry
3. Pharmaceutical Industry
4. Oil & Gas Exploration

Terminologies

A value chain is a set of activities that an organization operating in a specific industry performs in
order to deliver a valuable product for the market.

Upstream refers to the material inputs needed for production,

downstream is the opposite end, where products get produced and distributed.

Vertical integration refers to an arrangement in which the supply chain of a company is integrated
and owned by that company.

Supply chain refers to the entire process of making and selling commercial goods, including every
stage from the supply of materials and the manufacture of the goods through to their distribution
and sale.

Capital intensive refers to the degree that a company must invest money in physical or financial
assets in order to produce a profit.

Power Industry Pakistan

▪ Pakistan’s power sector consisted of two government owned utilities, WAPDA
and K-Electric (previously, KESC).
▪ K-Electric (privately owned utility company ) is responsible for power
distribution in Karachi and adjacent areas.
▪ WAPDA, a semi-autonomous statutory body, distributes power in the remaining
country.
▪ Water and hydropower resources came under the umbrella of WAPDA.
▪ KESC was privatized in 2005 as K-Electric (KE)
▪ WAPDA was unbundled into various companies;
▪ Generation Companies (GENCOs),
▪ National Transmission & Dispatch Company (NTDC)
▪ Distribution Companies (DISCOs), functions of its power wing were redefined as Hydel
Power Generation and Operation & Maintenance (O&M) of power houses.

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Generation – at a power plant

The upstream part of the value chain is called Generation or Generators. Different technologies and
fuel sources are used for this purpose. Thermal technologies use different sources of fuel, such as
natural gas, coal, furnace oil etc. On the other hand, renewable technologies include hydro, solar,
wind etc.

Transmission – from turbine to grid station

When the turbines generate electricity, its voltage is significantly increased by passing it through
step-up transformers. Once the high-voltage electricity reaches the grid, electricity is reduced in
voltage, again through the use of transformers, to make it safe for use by households and end users.

Distribution – from grid station to end users

When electricity leaves the Grid Station’s transformer, it enters distribution power lines on its way to
the final destination. Once it reaches the neighbourhood, electricity passes through another
transformer (usually pole-mounted, called PMT) for further voltage reduction. This ensures that it is
safe to use in homes and offices

Transmission & Distribution Losses

The shortfall of electricity between energy generated and energy billed is called transmission and
distribution losses.

Salient Features of a Power Generation Company

Capital intensive : The industry is highly capital intensive particularly in the area of electricity
generation
Tariff (pricing): Pricing in the power industry is determined by the regulator and government
authorities.
Subsidy in tariff: Subsidies are provided by government in different segments to encourage
or promote a certain segment of the economy or particular industry and consumers.
Fixed return ensured to investors: A tariff on the basis of fixed rate of return on investment
over plant life/contract period is determined by the regulator; and is contracted. All cost
variations are also admissible.
Government guarantee: GOP issues guarantee to IPPs (independent power producers)
backing up the payment obligation of the power purchaser
Predominated by government: With contribution of private sector mainly in generation
segment, the sector has high dominance by government.
Highly regulated: Power Sector is a highly regulated sector. Regulatory authority for this
purpose is NEPRA, which is an autonomous body mandated by the law to regulate the power
sector

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Key Challenges for Power Sector

• Availability of machines and network and their efficient operation

• Reliable and safe operations

• Uninterrupted power supply to consumers

• Prompt response to customer complaints

• Timely collection of bills

• Reducing power theft and line losses

• Circular debt issue

Core Business Functions / Deprt.

• Finance

• Procurement and logistics

• Regulatory

• Health, safety and environment (HSE)

• Human Resource Department

• Information Technology

• Billing function

• Marketing and communication

Finance Function / Departs

Finance department oversees the entire Financial Management of the organization.
Typical finance functions include:
• General Accounting & Financial Reporting
• Taxation & Insurances
• Business Partnering
• Accounts Payable
• Accounts Receivables
• Budget Monitoring & Control
• Treasury Management
• Management Reporting

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Procurement and logistics / Dept.

• Procurement and logistics strive to ensure that required items are timely
available to business unit at competitive price.

• A large portion of the procurement (especially generation related)

involves imports of fuel, and plant and equipment, which require a
robust import and clearance function.

• An important role of this function is to schedule maintenance of plant

and machinery during low demand season i.e. winters; hence plan the
overall logistics cycle accordingly.

• They also ensures that inventories are kept within range so the working
capital is not tied up while spares are available when needed.

Regulatory Function / Dept.

• Regulatory / legal function ensures that the organization is in compliance

with laws and regulations and their application.

• It is very important for the regulatory function to keep close coordination

with the regulatory authority and get timely clearance of subsidies and
dues from the government.

• It also ensures that the processes are updated and aligned with all
government rules and regulations.

Health, safety and environment (HSE)

Companies are required to abide by safety requirements of various
documents including Power Safety Code, Distribution Code, Power Safety
Manual and other applicable documents.
• Prevention of injuries and ill-health through proactive system of risk
management.
• Employee trainings and supervision
• Compliance with legal and regulatory requirements related to HSE
• To ensure HSE requirements are embedded in routine and non-routine
activities
• Conservation of natural resources and reduction of carbon footprint by
assessment to environmental impact and mitigation of adverse effects
• Continuous improvement through a system of performance planning,
measurement and regular reviews

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Human Resources Function / Dept.

Organizations require right and ready talent to successfully execute business

strategy.

• Source and retain manpower with required skillset to work on plant and
network.
• Maintaining industrial relations for labour.
• Learning and development of talent.
• Mapping the needs of employees in various segments and expectations of the
company.

Information Technology Function / Dept.

Information technology function facilitates via use of software and hardware
to provide its users with the tools to extract, utilize, analyze & present data in
meaningful way.

• Provide need based hardware & software solutions along with integration
of information such as plant management, finance and customer account
management.
• Integrity and security of customers / suppliers information.
• Infrastructure development and maintenance over large geographical area.

Billing Function / Dept.

• Billing function ensures timely issuance of accurate bills to customers and their
subsequent recovery.

• Management of a large volume of various consumer segments of a distribution

company

• Customer account maintenance

• Loss minimization and timely recoveries

• Addressing customer complaints

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Marketing and Communication

Due to monopolistic nature of business with long term secured contracts
and exclusive area licenses available, marketing function in power sector
is limited to:

• Media and Personal Relationship (PR) management; as power related

issues directly affect the lives of people
• Uplift and secure the corporate image
• Communication for corporate affairs

Textile Industry

Textile Industry
• It is largest industries in Pakistan.
• Fast developments in the textile industry is the production of cotton, garments,
hosiery, bed wear, towels and tents/canvas in the country
• High Contribution in the country’s economy.
• High employment opportunities, provides employment to 40% industrial labor
force.
• Foreign exchange.
• Adequate Exports, approximately 57% of country’s total exports in FY 2020-21.
• All Pakistan Textile Mills Association (APTMA) being the major representative
association of textile sector
• 396-member textile mills out of which 315 are spinning units, 44are weaving units and 37
are composite units.
• Major Cities of textile Industry; Karachi, Faisalabad & Lahore
• State Bank of Pakistan (SBP) introduced certain financing schemes at low
markup rates.
• Such schemes include Export Refinancing Scheme (ERF) and Long Term Finance
Facility (LTFF)

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Factors of Low Growth in Textile Industry

• Textile products are available at lower prices in other countries
• Tariffs on imported textile materials are applied to provide protection to
domestic industry which has resulted in inefficiencies in the local manufacturing
process.
• Stagnant domestic cotton production, due to climate changes, farmers’ interest
in more profitable crops, or lack of using new technology and modern methods
of harvesting.
• Limited number of value added products.
• Low usage of man-made fibers.
• Failure to benefit from cost efficiencies through cluster development & growth.
• Absence of modern management practices.
• Lack of skilled labor

The Value Chain of Textile Business

▪ Raw Material Sourcing

• Cotton
• Polyester
• Viscose
▪ Spinning
▪ Weaving
▪ Wet Processing
▪ Garment Manufacturing
▪ Quality Controls and Quality Audits
▪ Shipment and Logistics

Primary Raw Materials

• Primary raw materials used in the textile industry are Cotton, Polyester and Viscose.
• Cotton is a natural fiber grown as industrial product in Pakistan within which Punjab and Sindh are
the major cotton growing provinces.
• Polyester and Viscose are manmade fibers which are both locally produced and imported.
• Local cotton from the fields reaches textile spinners through cotton ginners.
• Cotton ginning is a process in which cotton fibers are separated from the seeds and wastes such as
leaves. The raw material for cotton ginners is seed cotton.
• Cotton ginners, represented by Pakistan Cotton Ginners Association (PCGA), are located in cotton
growing areas of Punjab and Sindh.
• Demand and supply of cotton ginners is affected by various factors including weather conditions,
import duties on imported cotton, exchange rates and general economic conditions of the country.
• Cotton is import for USA, India, Middle East, Europe and Asia.
• Ibrahim Fibers and ICI Polyester are major polyester manufacturers in Pakistan.
• polyester is also being imported, majorly from China and Korea and some other Asian countries.
• Viscose is also being sourced through import channels. Major import countries for viscose include
China, Indonesia and Korea.

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Spinning
• Raw materials including cotton and polyester are converted into yarn in a
climate controlled facility.

• For planning purposes on subunit levels, a ‘spin plan’ is prepared for

planning the yarn types to be produced as well as for backward planning
of input requirement for each subsection of spinning process.

• Input is determined backward from auto cone to mixing process keeping

in view the waste percentage in each process.

• The capacity of spinning unit is denominated in ‘number of spindles’ in

ring section, a front end sub unit in spinning process.

Weaving
• Weaving is the process of fabric manufacturing by interlacing two sets of
yarn called warp and weft.
• In the weaving, many developed machines are using in the textile
industries. For example, Air jet loom, Shuttle less loom, Jacquard loom, etc.

Generally, three types of fabric are produced for garments and textile
production. These three types of the fabric manufacturing process
are weaving, knitting and non-woven.
• The woven fabric is produced by the weaving process. The knitted fabric is
produced by inter-looping by the knitting machine and non woven fabric is
produced by applied pressure.

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Warp
Weft

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Weaving Process
1. Yarn preparation: Yarn collects from the spinning industry. But it needs to
prepare a suitable count and package.
2. Winding: winding is preparing cones with yarn for wefting.
3. Warping: It is a process of making a sheet of yarn threads in the form of
warping beam.
4. Sizing: In this process, the number of ends required for a given fabric quality
are taken from multiple warping beams to the weaving beam.
5. Drawing: It is a process of preparing weaver's beam for the purpose of
weaving fabric on the loom according to design of the fabric.
6. Weaving: Finally Weaving is started and others process will be followed for
delivery.
7. Folding: Weaved cloth from loom shed is brought into folding section for
inspection, mending, grading and packing of fabric.

Wet Processing In textile Industry

In processing, greige fabric is converted into processed fabric

• Singeing
• De-sizing
• Scouring
• Bleaching
• Dyeing
• Printing
• Finishing
• Folding

Wet Processing In textile Industry

• In processing, greige fabric is converted into processed fabric
• Singeing: Singeing is designed to burn off the surface fibers the fabric to invoke smoothness in it. The fabric
passes over brushes to raise the fibers, then passes over a plate heated by gas flames.
• De-sizing: De-sizing is the process of removal of sizing material on fabric (greige fabric is sized as part of
weaving).
• Scouring: Scouring, is a chemical washing process carried out on fabric to remove natural wax and non-
fibrous impurities from the fabric including soiling and dirt. At this stage even the most naturally white
fabric is in yellowish tone.

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Wet Processing In textile Industry

• Bleaching: Bleaching improves whiteness of fabric by removing natural coloration
and impurities from the fabric through a washing process.

• Dyeing: Dyeing is the process of adding color to the bleached fabric as per
requirement.

• Printing: Printing is the process of applying color designs and patterns to the fabric.
There are different kinds of printing such as digital printing and printing through
engraving screens.

Wet Processing In textile Industry Finishing: In finishing, different

processes are applied to
improve the look, performance,
shrinkage, or ‘hand’ (feel) of
the fabric.

Folding: packing and processing

faults are also inspected during
this process.

Garment Manufacturing
• Garment manufacturing is labor intensive section of textile industry.
• This section is further divided into three major categories: woven, knitted
and home textiles.
• In manufacturing, fabric is cut and stitched as per requirement and design of
desired product.
• Design and cutting phase of stitching operation varies with complexity of the
product involved.
• For garment designing and cutting, automated CAD, automated fabric
spreading and automated cutting methods are applied; whereas for home
textile, manual operations are applied from designing to cutting of fabric.
• Stitching production lines and stitching operations are designed keeping in
view the product being stitched. Therefore, different models are applied in
stitching operations such as stitching of complete unit by one person to
specific stitching task by specialized workers.

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Difference between Knitting & Weaving

• Knitting is the process wherein thread – or sometimes yarn – is made
into cloth and other crafts. It consists of stitches (or loops) of the
material consecutively run together.
• Weaving on the other hand, is the process in which two types of yarn
or threads are interlaced together to form a fabric or cloth.

Quality Controls
• All production operations from spinning to final product, quality controls are
being exercised to ensure prevention of production faults and to rectify
defects on spot, before sending shipment to final customer.
• Quality control tests are designed and performed to rectify production errors
through machine adjustment and reworks.
• Quality control also incorporates all fabric and garment testing such as
tearing, tensile and appearance after wash tests to make sure the product
meets the performance requirements.
• For quality checking, Acceptable Quality Limits (AQLs) are being applied. AQL
4 means that there should not be more than 4% defective pieces of sample
selected.

The Quality Audits

• Cutting: First, fabric is spread for bulk cutting and is cut using the manual
or automated machines (e.g. Laser).
• Stitching: After cutting, the cut pieces along with stitching accessories
such as threads, buttons, hooks and zips are forwarded to stitching
section where workers sew the cutting pieces into required product.
Generally, inline inspections are performed in the stitching section to
detect and remove stitching faults instantly.
• Laundry: Laundry is a major value addition part of garment
manufacturing both in woven and knitted products. Dyeing garments
made out of RFD (Ready for Dyeing) fabrics is also done in this stage.
• Finishing: After laundry, units are forwarded to Trimming and Pressing
section where trained staff removes unnecessary threads from products
and press the stitched articles. The pressed articles along with packing
accessories such as insert cards, stickers, branding hashtags and labels are
packed into cartons or polythene bags as per requirement.

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Shipment and Logistics

• The last part of value chain is arranging shipments for customer.
• For local customers, both ex-mill and ex-party terms are agreed with
customer.
• In ex-mill terms, arranging transportation is the responsibility of the
customer.
• In ex-party terms, the company is responsible for transportation.
• For export suggested terms for customer, including Free On Board (FOB)
and Carriage Insurance and Freight (CIF) are generally agreed with. These
terms are generally called incoterms.
• Sometimes, due to delays in supply chain process, air shipments have to be made
by textile companies to avoid penalties. However, this is the least preferable mode
due to involvement of hefty air freight cost.

Core Operations of a Textile Business

• Accounts and Finance

• Sales and Marketing
• Health Safety and Environment (HSE)

Accounts and Finance

▪ Financial reporting and taxation frameworks
▪ Finance executives in textile companies have similar roles and
responsibilities in standard operations of accounts, finance and tax.
These roles (including but not limited to) are as follows:
❖Budgeting and forecasting
❖Financing and treasury operations
❖Working capital management
❖Costing
❖Financial statement closing process
❖General accounting
❖Legal compliances including those relating to taxation, corporate and labor
laws

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Sales and Marketing

•There are different sales and marketing channels in textile industry such as
•Export markets,
•Local markets and
•Retail network.
• Highly specialized marketing staff, having knowledge and experience of dealing with specified
export market and export products, are being employed. Marketing activities include international
exhibitions, trade fairs, product samples and personal inquiries.
• The top five export markets along with percentage share for each kind of Pakistani value added
textile products are as under:
Ready Made Garments (US$ 2.451 billions):
• USA (23%) Spain (14%) United Kingdom (13%) Germany (13%) Belgium (6.97%)
Bed ware (US$ 1.768 billions):
• USA (27%) Germany (14%) Netherlands (10%) Belgium (8%) Italy (7%)
Textile Made-up other than Bed ware & Towels (US$ 0.57 billions):
• USA (77%) Germany (7%) Netherlands (3%) France (3%) Canada (2%)
Cotton Fabrics (US$ 1.438 billions):
• Bangladesh (33%) Italy (11%) Turkey (11%) China (9%) Portugal (6%)

Local markets exist in all textile representative cities such as Karachi, Faisalabad, Lahore and Multan.

Health Safety and Environment (HSE)

• Health Safety and Environment (HSE) has great importance in textile industry.
• To ensure health and safety,
• Employees are trained about operational precautions and self-protection. Workers
are trained in PPE (Personal Protective Equipment), firefighting and responding in
emergency conditions.
• Awareness sessions are also conducted about HSE internal policies and best
practices as per local and international standards.
• Textile companies take different measures for the sake of environment
sustainability, such as waste water/effluent treatment, compliance with RSL
(Restrictive Substance List) and sourcing prescribed chemicals only.
• Textile companies are to ensure that hazardous wastes and chemical effluents are
treated to remove hazardous materials before discharging these wastes in
environment.
• Sourcing of chemicals in processing is controlled so that minimum wastes and
effluents are discharged.
• ISO 14001 & Nordic Swan Ecolabel; textile industry designs procedures for
continuous compliance with frameworks given in such certification.

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• Pakistan has a Growing and Profitable Pharma Industry. Pharmaceutical Industry

• There are approximately 650 companies operating in the Pakistan, 30 are multinational
companies.
• Contributes approximately 1% to the GDP of Pakistan annually.
• Meets around 70% of the country’s demand of Finished Medicine.
• The industry has invested substantially to upgrade itself and following Good Manufacturing
Practices (GMP).
• Industry has the capacity to manufacture a variety of product ranging from simple pills to
sophisticated Biotech, Oncology and Value Added Generic compounds.
• Industry estimated by IMS (MAT June 2017) at Rs.300 billion, growing at a rate of 12% (5 year
CAGR).
• Top ten companies constitute approximately 46% of the market whereas top 50 share
approximately 90% of the market.
• Around 9,000 actively marketed drugs, there is a large segment of Over the Counter (OTC)
products e.g., multivitamins; pain, cold and flu relief.
• Industry is regulated by the government. The Drug Regulatory Authority of Pakistan (DRAP)
controls the registration of new medicines and new manufacturing sites. It also determines
the Maximum Retail Price (MRP) of all medicines marketed in Pakistan.
• Government provides free or low cost treatment at government hospitals.
• Pakistan does not have a national health insurance cover. Work in progress

Salient Features of a Pharmaceutical

Company

• Sales Incentives
• Payments to Drug Regulatory Authority of Pakistan (DRAP)
• Payments to Healthcare Professionals
• Sales Invoicing, Delivery and Receipt of Collection
• Scientific Information
• Clinical Trials

Salient Features………………
Sales Incentives
• Medical Representatives are given a fixed salary and a variable incentive pay.
• They call on doctors to communicate scientific product and disease information,
treatment efficacy, results of clinical studies etc.
• They are given targets in terms of number of calls that they make to doctors in their
respective assigned territories, number of scientific and promotional activities carried
out as well as sales.
Payments to Drug Regulatory Authority of Pakistan (DRAP)
• There are certain special payments made to DRAP for various purposes including:
i. Central Research Fund: Annual levy of 1% of Profit Before Tax
ii. New Drug Registration Fees
iii. Drug Registration Renewal Fees
iv. Drug Manufacturing License Fees

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Salient Features………………
Payments to Healthcare Professionals
• Pharmaceutical companies make various kinds of payments to Healthcare
Professionals (HCPs)/Healthcare Organizations (HCOs) with respect to services
obtained from them.
• Honoraria for delivering lectures in conferences and symposia,
• Local Speaker Programs (LSPs)
• Round-Table Discussions (RTDs)
• Covering topics based on latest research in various areas of medicine, awareness
programs for HCPs as well as general public.

Sales Invoicing, Delivery and Receipt of Collection

• Pharmaceutical companies generally sell their medicines on advance payment to
their distributors.

Salient Features………………
Scientific Information
• A Medical Affairs Department in any pharmaceutical company plays an
increasingly important role in communicating scientific information to HCPs in
an objective and ethical manner.
• It provides medical education on latest clinical research, treatment guidelines,
new medicines, their medical benefits to patients and any risks of side effect.

• The Department focuses on developing customer and patient insights about

disease prevalence, their prevention and cure; translating evidence into
meaningful information as well as communicating it to the doctors. Scientific
information on the appropriate use of medicines and vaccines are also
provided.

Salient Features………………
Clinical Trials
• Clinical trials are undertaken to develop medical research evidence to
understand efficacy of new medicines in treating diseases.
• Clinical trials are research studies that test how well new medical
approaches work on people.
• Each study answers specific scientific questions and tries to find better ways
for prevention, screening, diagnosis, or treatment of a disease.
• Clinical trials may also compare a new treatment to the one that is already
available in the market.
• Pharmaceutical companies engage leading hospitals and approved Clinical
Research Organizations for clinical studies/trials on a specific medicine’s
efficacy in treatment of diseases.

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Opportunities for Pharma Industries

Market Attractiveness
• Large population
• High disease burden / poor health

Export Potential
• currently less than $200 million in Pakistan.
• India pharma exports are more than $20 billion.
• Bangladesh and India are growing with exports more than 10 times of
Pakistan.
• Bangladesh and India have many Food and Drug Administration (FDA)
approved plants. However, Pakistan do not have a single manufacturing
plant that is FDA approved

Challenges for Pharma Industries

Price Controls
• High Import medicine
• High inflation due to devalue of money
• Low margin in production, many local & multi-national Company exited.

Delay in New Medicine Registration

• Registration bodies delay to approve
• Due to delay and change in price make it difficult.
• Importer fill the gap.

Sourcing Active Pharma Ingredients (APIs) and Way Forward

• The pharmaceutical industry is highly dependent on import of active ingredients
from neighboring countries such as China and India.
• Reliance of local pharmaceutical industry on India is estimated at 60%.

Oil and Gas Industry

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Oil and Gas Industry

• Oil & gas sector is among the most impactful sectors of Pakistan’s
economy.
• The total energy supply during 2019 was about 86 million tons of oil
equivalent.
• Gas contribution, local gas is about 35% of the total energy supply.
• In 1947 there was no gas production. Over the past half century the
petroleum industry has played a significant role in national development
by making large local gas discoveries.
• With future energy crises and the ongoing growing demand for oil and gas
in Pakistan, considerable interest from investors.
• Oil and gas industry is categorized into three major segments. (Upstream,
Midstream, Downstream)

Upstream
• Petroleum supply chain infrastructure in Pakistan starts from port facilities
at Karachi.
• Crude oil, white-oil products, Low Sulphur Furnace Oil (LSFO) are received
at the Karachi port,
• LPG and High Sulphur Furnace Oil (HSFO) are received at the Fauji Oil
Terminal at Port Qasim.
• The port facilities are connected to the tankage/storage facilities of the
refineries and oil marketing companies (OMCs).
• Oil explored and produced (E & P) locally is transferred from E & P
companies to refineries, and from refineries to oil marketing companies,
and from oil marketing companies to thermal power plants and other
petroleum consumers through individuals industries.

Midstream
• Mid-Stream industry involves processing, Transportation and storage of
crude oil.
• The activities of oil refineries, fertilizer plants.
• Oil refineries refine crude oil into various types of petroleum products
such as motor spirit, diesel, kerosene oil, jet fuel, etc.
• Bulk of petroleum products required by Pakistan’s market is transported by
road, oil pipelines and railways.
• Refineries, Oil Marketing Companies (OMCs) and large consumers own
terminals and storage facilities to receive and store crude oil and
petroleum products throughout Pakistan to help in distribution of the oil
products throughout the country.

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Downstream

• Marketing and distribution of refined oil, commercial and residential end

users such as power plants, petrol pumps, various industries and
household.

• In the downstream oil sector, there are currently seven refineries and
twenty-eight Oil Marketing Companies (OMCs) operating in Pakistan.

Salient features of an Oil and gas

exploration company

• Land Acquisition
• Procurement
• Health, Safety and Environment (HSE)
• Training and Development
• Finance, Accounting and Taxation
• Social welfare

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Land Acquisition
• Large areas of land are required to carry out the E&P (exploration & production)
company activities.
• Land is acquired via either purchase or rental/lease, short term or long term.
• located beneath a surface and especially underground, property rights belong to the
country, however, access to the surface (land) is obtained from the owners of the land
which could be private land owners or the Government.
• Acquiring land is quite intense work as sometimes the land is used for agriculture,
industrial or residential purposes. Therefore, companies usually have a separate
department for this.
Procurement
• Material required for drilling and setting up processing facilities is imported.
• In case any item is imported temporarily (for example, an equipment/tool imported
by a service company from other country to be used for a specific job and to be sent
back to that country), it can be cleared by custom authorities against a corporate /
bank guarantee without charging any import duty etc.

Health, Safety and Environment (HSE)

• Being a highly technical industry dealing with inflammable/burnable
products, HSE is important for E&P company. Policies and procedures display
a significant focus on HSE
• Capacity building of the staff is done by providing regular HSE trainings such
as sessions on emergency response, asset protection and process safety etc.
• HSE guidelines and procedures are developed and company staff and related
staff is regularly trained based on these guidelines and procedures.
Training and Development
• Being a highly specialized industry with continuous technological
advancements, most of the companies have a dedicated section within HR
department or a separate training and development department for
continuous training of the staff involved in the operations.

Social welfare
• E&P activities in Pakistan are generally carried out in less populated and
under-developed areas, which are in need of necessities such as water,
electricity, clinics, schools and colleges. E &P companies have contributed
for the last many years in the following areas:
• Provision of water resources for drinking and cleaning.
• Primary and secondary schools and vocational training centers.
• Building and managing small hospitals and dispensaries to provide health
services to local communities.
• Vaccination against communicable diseases such as Hepatitis B and C.

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