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Group
Coordinators |
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1 |
Mr.
Fida Ali Miza, Financial Controller, GAC Shipping (Pvt)
Ltd. |
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2 |
Mr.
Mansoor H. Khan, Legal Consultant, Khan & Associates |
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3 |
Ms.
Fowzia Husain, General Manager (Credit & Marketing),
Orix Investment Bank. |
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Financing:
- Federal financing should be in the
form of grants and loans as a percentage of the Project, with
co-financing by the provincial and local bodies.
- Distribution of financing among
various sectors must be equitable.
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Cost
Recovery:
- The users must pay service charges
to the extent of their affordability.
- Government subsidy should be
considered only in well-defined cases of social welfare such as
urban transport and PSO of Railways.
Organizational structure:
- All the transport related agencies
must have proper institutional arrangements for quality control,
monitoring, research, etc to ensure improvements in delivery of
services as per their charter.
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Financing :
Financing is one of the most potent tools in the hand of the
federal government to ensure implementation of its transport policy.
Unfortunately, in the past this tool has not been effectively used.
As a result, the federal government was not able to secure
implementation of its policies. There has been two serious problems
in this regard. Firstly, federal government has been generally
providing 100 percent financing for individual projects and
secondly, distribution of available finances among approved projects
has not been equitable. Since in a democratic set up "Planning by
Directives" is not feasible, financing is the only instrument
through which voluntary implementation of the policy is assured.
This is generally achieved by using financing as an incentive for
wider acceptance of policy objectives.
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Cost
Recovery:
Transport
improvements are generally not self-sustaining. Nevertheless, as a
principle, users should pay costs incurred on transport
improvements, which must be kept to the minimum by making the scope
of work confined to bare minimum required to meet the genuine demand
of the users. Government subsidy should be considered only in
well-defined cases of social welfare such as urban transport and
Public Service Obligations of the Railways, etc.
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Organizational structure :
The various federal transport agencies such as National
Highway Authority, Karachi Port Trust, Port Qasim Authority, Railway
Board, Pakistan National Shipping Corporation, National Tanker
Corporation, Pakistan International Airlines, National Logistic
Cell, and Civil Aviation Authority do not have the required
organizational structure to bring about the desired improvements in
delivery of services as per their charter. The most glaring
deficiency is the absence of quality control, monitoring and
research.
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Resource Constraints
The Public Sector Development Program (PSDP) is unable to
meet the needs of the public transport sector. The level of
investment by the government is insufficient to meet the competing
demands of the different transport sub-sector and as such, some
sectors have been neglected. There is also growing pressure on the
the government to rescue its non-development (recurrent)
expenditure. This results in lack of recent years the allocations
for other sectors like SAP has also impacted the amount of funds
available for the transport sector. |
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Inappropriate Investments
The funds that have been available have not always been
spent wisely or in accordance with the needs of the sector. There is
need to priorities. |
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Political Stability
Political stability and continuity was a pre-requisite for a
secure investment climate and for building investor confidence. The
implications of an Islamic economy for private sector investment
needed to be clarified. A great deal of uncertainty had been
generated as a result of the Supreme Court ruling on interest. This
uncertainty was not conducive for investments of any
kind.
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Private Sector Participation
There is need to encourage private sector
participation in the transport sector. There has been deterioration
in the investment climate as a result in the transport sector and
provide incentives to encourage private sector participation. There
is need to provide a balance between individual and national
interests as well as economic and financial rates of
return. |
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Indivisibility of
Investments
A major
issue that the private sector faced with respect to land transport
was the indivisibility of investment. Vehicles had to be built with
a capacity in the first few years of operation. There was no
effective capacity management or pooling program to deal with some
of these issues of investment. |
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Financing
Arrangements
There is need to consider innovative financing arrangements
for the transport sector. A line of credit for the private sector
and the establishment of a development bank are some of the options
that can be contemplated and developed. Other financing mechanisms
that could be considered are the active involvement of the DFIs and
partnership of the government thought equity in
kind.
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Simplification of Procedures
There was a multiplicity of organisations that a
potential investor or entrepreneur had to deal with. There was a
need to simplify procedures and institute concepts such as
one-windows operations. |
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Foreign Exchange Regulations
There was a need to liberalise controls as well
as provide up-dated and accurate version of the Foreign Exchange
Manual. |
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April 2001 |
The World Bank, in conjunction with MOC, NTRC is
organising a Transport Workshope from 24 to 26 April, 2001. |
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