ISLAMABAD (January 13 2009): President Asif Ali Zardari on Monday urged measures on war-footing to achieve self-reliance in indigenous fuel, as oil imports impacted the country's economic stability. During a briefing on "Fuel Ethanol Policy" at the Presidency, Zardari said the recent volatility in oil prices to over 150 dollars a barrel and environmental concerns had pointed to the need for developing alternative fuels such as ethanol and biodiesel.

The world was moving rapidly towards developing new fuel technologies and Pakistan could not afford to lag behind. The President said indigenously produced ethanol and biodiesel could help achieve import substitution besides avoiding oil price volatility.

However, the President said caution must also be exercised so that food production was not adversely impacted. The briefing was attended by Finance Advisor Shaukat Tarin, Minister for Industries and Production Manzoor Ahmad Wattoo, secretaries and senior officials of Finance and Petroleum Ministries, members of Planning Commission, Parc Chairman and ZTBL President.

Member (Energy) Planning Commission Pervez Butt highlighted the strategic priorities facing domestic gasoline use with biofuel over the next few years requiring substantial increase in its mandatory use. He said ethanol was environmental friendly. It was pointed that corn was a renewable resource and had lower energy yield than either biodiesel (such as soybean oil) or ethanol from many other plants.

During the presentation it was informed that Pakistan like many other major sugarcane-producing nations enjoyed significant advantages in producing ethanol, including ample agricultural land, warm climates amenable to vast sugarcane plantations, and on-site distilleries that can process cane immediately after harvest. It was pointed that ethanol was being mixed in different proportions in motor gasoline in many countries and a 10 percent mix was referred to as "E-10". He said the government was considering various measures to promote the use of E-10.

Copyright Associated Press of Pakistan, 2009