Hangu District
Trend Analysis
Demographics | 1998 | 2017 |
Area SqKms | 1097 | 1097 |
Population | 314,529 | 518,798 |
Population Density / SqKm | 286.7 | 375.9 |
Urban Population | 64217 | 102440 |
Rural Population | 250312 | 916358 |
Total Housing Units | 29944 | 34804 |
Housing Units having Electricity | 27369 | 36503 |
Housing Units Having Piped Water | 7076 | 9064 |
Housing Unit using Gas for cooking | 380 | 900 |
Source: Pakistan Bureau of Statistics
Outline
The economic development model for District of Hangu seems to rest on harvesting its hydrocarbon exploration potential (oil, gas and coal), industrialization based on oil and gas services industry and Limestone Extraction Hub. In addition, a substantial forest cover in the area allows for earning of carbon credit internationally.
1. Hydro Carbon Exploration
- The Southern Belt of K-P, including Hangu district, carries enormous reserves of oil and gas. Huge catchment of oil and gas in Hangu district has been discovered by KPOGCL.
- Currently exploration is being shared by Hungarian Company MOL Group, in Tal Block and OGDCL, in Kohat Block, respectively.
- In addition to oil and gas, Hangu district is part of an important coal belt of K-P province (Hangu-Orakzai-Dara Adamkhel-Cherat). This area is estimated to have 123 million tons of coal reserves.
- If properly exploited, Hangu District could become one of the chief energy hubs of KP province.
2. Oil and Gas Service Industry
- To facilitate exploration and extraction of oil and gas in the area, a service industry could be setup in the district or in the nearby SEZ –- preferably in Kohat or Bannu.
- The proposed services industry would include:
- Drilling Services like Land Rigs, Submersible Rigs, Jack-ups, and Drill Ships.
- Field Services like Seismic Testing, Transport Services, and Directional Services.
- An oil refinery- preferably one being planned in Kohat SEZ.
3. Industrial Minerals Extraction
- Hangu District is part of 120 Km long linear belt of Limestone which originates from Kohat.
- There is already an active cement factory in nearby Kohat district, so Hangu can act as a supporting zone for Cement Industry in Kohat.
4. SWOT Analysis
Strengths
- Huge reservoirs of Hydrocarbons.
- Immense reserves of industrial rocks.
- A hub of limestone extraction.
Opportunities
For the development of Hangu district KP Government can take following measures;
- The government of the KP along with Geological survey of Pakistan and Geological department of University of Peshawar should conduct an intensive survey of the area and jot down the exact estimates of hydrocarbons in the region.
- Technical Assistance could be sought from US Geological Survey department and KPOGDCL.
- Financial assistance could be sought from USAID and World Bank.
- Investor brief should be prepared after the survey and hydrocarbon hotspots should be identified properly for the investors.
- Proper security arrangements be provided to foreign investors willing to drill in the area along with options for insurance.
- A state of the art services industry needs to be established in Hangu which offers following services:
- Drilling Services like Land Rigs and Jack Ups.
- Field Services like Seismic Testing, Transport Services, and Directional Services.
- An oil refinery– which supports the whole region.
- A special investment insurance program for Energy Sector can be launched for Investors, to woo foreign investors into bringing in their capital.
In order to overcome the above mentioned challenges faced by the industry, and make it more competitive for global market, following policy recommendations can be adopted:
- Establish a ’Mineral Processing and Value Addition Complex’, preferable in Hangu and ensure provision of:
- Plots and basic utilities, i.e. electricity, gas, insurance, security etc. for potential investors in construction sectors.
- A research institute for mineral extraction and processing.
- Technical Training Center.
- Business Park and Office Space.
- Local HQ of KP Mining Services and Co.
- Freight Handling & Customs Centre
- Bids should be open to invite local and international companies which have a reputation in construction business to open their facilities.
- A small electricity generation unit based on coal can also be setup in the area with foreign investment.
- The office of KP Mineral Development Department should offer regular assistance to industry in general on modern mining techniques, equipment handling and environmental safety.
- KP Mineral Development Department needs to prepare an Investor’s Brief that clearly quantify / identify the potential of mining minerals in the area, and state the current level of investigation for the total amount of minerals available.
- To increase accessibility of local mine and industry owners to finance, KP Government can use following options:
- Encourage all state owned and private banks to offer Islamic banking to the locals involved in this sector.
5. Conclusion
Hangu is a district with quite feasible investment opportunities. If these opportunities are availed by avoiding or tackling the above mentioned threats, the district can grow in a productive way.