Policies and Issues of Transport Sector in Pakistan
By: K. Raffat Zaheer

The transport sector has traditionally received one of the largest share of the Public Sector Development Program allocations in the successive five year plans, yet the state of transport in our country is in complete disarray. It is obvious that our central planners and policy makers have failed miserably in formulating and implementing sustainable transport strategies. 
 
In the modern world, transport strategies require an integrated approach, where the ultimate objective is to provide the most cost effective and efficient through transport which will strengthen the logistic chain.
 
Pakistan has totally neglected its Railways and burdened its road network with the bulk of its freight movement which could be transported much more cheaply by rail. 
 
The concept of professional consultations and consensus building is also rare as far as the Government of Pakistan is concerned. Little or no attention is ever given to what the professionals in the transport sector have to say about their industry.
 
In October 1998, the Chartered Institute of Transport, Pakistan prepared a National Transport Policy document (of which I was a co-author) and sent a copy to the Secretary Communications, Government of Pakistan. The CIT had offered its services to discuss and debate the contents of this document but received no response whatsoever from the Ministry of Communications. 
 
The Issues Paper on the Transport Sector in Pakistan prepared by EDC is very good. My comments and suggestions on various sub-sectors are as follows:
 
Shipping
 
Delete following three points which are no longer relevant since remedial action has been taken recently :

1. Low utilization of Pakistan National Shipping Corporation's chartered ships and the weak financial position of PNSC are a constraint in the shipping sector in Pakistan. 
2. Unnecessary imposition of duty and taxes on locally registered ships hinders their operations. 
3. There is an extreme shortage of trained manpower in the shipping sector. 

Please substitute above with following points:

Promulgation of the new Merchant Shipping Bill 1999, which was ready for passage by Parliament has been delayed. 

• Announcement of the new Shipping Policy by GOP is awaited. 
• Absence of incentives in respect of cargo reservation for Pakistan flag vessels 
• Absence of a bilateral agreement with India on reciprocal sea cargo rights. 
• Obstructions created by revenue officials and other bureaucratic hindrances created by port officials which discourage registration of merchant vessels in Pakistan.

Ports
 
Please add the following:

• The Karachi Dock Labor Board and its nominated workers continue to be a hindrance to port productivity and their restrictive practices are responsible for the high cost of cargo handling in KPT.
• Port services such as pilotage, tugging, berthing warehousing etc still continue to be handled by KPT and PQA despite consensus within GOP that Pakistan ports should operate on the "Landlord" concept. 

 Public Transport/Urban Transport:
 
 Please add the following:

• The following elements of deficiencies are creating increasing traffic congestion, accidents and environmental problems

1. High level of motor vehicle growth
2. Lack of pedestrian facilities
3. Lack of road safety awareness
4. Increasing number of traffic violations
5. Poor enforcement of traffic regulations
6. Lack of traffic control devices
7. Uncontrolled parking
8. Non-availability of by-pass routes
9. Lack of inter-agency coordination

 Railways:

 Please add the following:

The following measures are highly recommendable for salvaging Pakistan Railways:

• Merge the Ministries of Railways and Communications to become Ministry of Transport.
• Make the Railway Board a separate and powerful body located at Lahore. 
• Reconstitute the Railway Board comprising majority members from the Private Sector. 
• Mandate the Privatization Communication to:

1. Privatize Pakistan Railways activities and assets
2. Establish a Railway Regulatory Authority
3. Railway Act 1890 needs to be reviewed to provide for modern requirements

Multi-Modal Transport:
 
 Please insert this new sub-sector:

The following policy measures should be adopted:

• Advantages of Multimodal Transport should be widely propagated to all concerned individuals and organizations. 
• The concept of Multimodal Transport (MT) should be fully integrated in the system for international trade from and to Pakistan. 
• Legislation for carriage of goods through Multimodal Network should be finalized as per recommendations of 1994 UNCTAD Conference and subsequent World Bank Study of 1996.

Legislation is necessary to cover the following aspects:

1. Liability and contract of carriage
2. Insurance of cargo in transit 
3. Customs duty for short landed cargo 
4. Contract carriage liability provisions for actual and contractual operators in road, rail and sea modes of transport

Other policy matters concerning Multimodal transport are as follows:

1. A National Coordination committee to promote Multimodal Transport should be appointed to monitor implementation and ensure coordinated progress.
2. The streamlining and rationalizing of customs procedures and regulations in line with the requirements for the introduction of Multimodal Transport. A number of regulatory controls exist which impede the flow of goods from seaports to and from inland destinations, which should be reviewed. 
3. Significant changes have to be made in Pakistan's transport related legislation and recommend measures to achieve intermodal alignment and international compatibility. 
4. Multimodal transport operators should be registered to ensure stability and quality of services. 
5. The prevailing trade and banking procedures in the country should be improved to meet the needs of Multimodal Transport in Pakistan. 
6. The private sector should be fully involved in the promotion and development of the Multimodal Transport System in the country. 
7. The new world trade data interchange system be adopted in Pakistan to enable the essential informational flow necessary to support multimodal transport. 
8. The Pakistan International Freight Forwarders' Council (PIFFC), the organization of multimodal transport operators and groups of other transport intermediaries should adopt a set of minimum standards for their professional and financial qualifications and establish a code of professional conduct. The new standard trading conditions will make them reliable partners for foreign counterparts/clients. 
9. The current Pakistan legislation does not consider freight forwarders as carriers. Because of lack of appropriate multimodal transport operations. In this regard reference should be made to the UNCTAD Minimum Standards for transport operators. 
10.  The freight forwarders, NVOCCs and transport operators of the country should reorganize themselves on modern lines and adopt standard rules of operation. 
     k) Ports should work round the clock to expedite cargo handling operation within the port and reduce expensive delays. 
    

Aviation:
 
Please add the following:

Following policy recommendations should be implemented:

• Aviation should be classified as an industry to encourage private sector participation. 
• International air transportation by both Pakistan registered and foreign registered carriers be offered equal opportunity to conduct business as provided in various multilateral and bilateral agreements to which Pakistan is a signatory.

Other provisions are elaborated as under:

1. Competition between Pakistani air carriers on international routes be avoided and routes awarded on the basis of equipment suitability and financial standing. This will facilitate capability to compete with foreign air carriers.
2. Foreign air carriers be encouraged to fly through the national airspace by the most direct route.
3. Open sky policy may be introduced for end to end traffic on a reciprocal basis so as to obtain an increase of aircraft on airports and passengers in their terminals. 
4. Traffic to and from third countries be permitted conditionally.
5. The protection available to PIA be reviewed keeping in mind the requirements of open skies policy.
6. Induction of private airlines be left to the market forces. The regulation of aircraft maintenance and operations should be the only concern of aviation authorities. 
7. General aviation be encouraged to cater for charters, tourism, aerial survey / photography, air ambulance / evacuation in emergencies and training. 
8. Domestic Air Transport be completely de-regulated to allow market forces to determine the fares and rates to be levied on all the routes.
9. Accident investigation should be separated and placed directly under the minister in charge of transport.

Copyright (c) 1995 - 2001 Pegasus International. All rights reserved.
All parts of this website are copyright of their respective owners. 
No part may be reproduced in any form without the prior consent or
 written authorization of the developers.
Disclaimer Clause: While every effort has been made to ensure accuracy,
 we cannot hold ourselves responsible for any errors, omissions etc.
Best viewed at: 800x600