Transportation In Pakistan - Exploring Transportation Dynamics In Pakistan"S Trade Sector"
How Is Pakistan Enhancing Its Transportation For Trade?
Transportation infrastructure boosts trade efficiency in Pakistan.
The year 2007 turned out to be an exceptionally difficult year for PIA. The Airline experienced a series of financial, operational and marketing problems during the past year that severely hampered its performance. In the early part of the year, an operating restriction was placed on PIA flights by the European Union. Apart from providing a negative image for the Corporation, this translated to a loss in market share as well as growth in business which made the situation exceptionally difficult. An unprecedented increase in oil prices adversely impacted PIA’s bottom line and neutralized recovery efforts. Attempts were made to contain the impact of a rising fuel bill by reducing the utilization of older and fuel inefficient planes. The airline was also mired by increases in pay to certain categories of personnel and a depreciation of the Rupee against the Dollar. The 9,574 km long National Highway and Motorway network - which is 3.65 percent of the total road network - carries 80 percent of Pakistan's total traffic.
Ports & Shipping
Karachi Port Trust (KPT): The steady and continuous progress made by KPT has helped boost the national economy over the years with international trade ever-increasing in a globalized world. The KPT had an annual cargo handling size of 30.8 million tons during 2006-07, showing a slight decrease of 4.4 percent over last year’s record cargo handling of 32.3 million tons. However, there has been a rise in activity during the first seven months of the current fiscal year, showing remarkable increase in all types of cargo handling including bulk, Break bulk and containers. Figures show that during the first seven months of the current fiscal year, already 20.5 million tonnes of cargo has been handled.
Port Qasim: Port Qasim is the first industrial and commercial port of Pakistan operating under landlord concept. Today it caters for around 40% of shipping requirements of the national economy. During the last financial year 2006-07, PQA handled a record volume of 24.3 million tonnes cargo showing an impressive growth of around 13% over corresponding period. However, from July to March of the current financial year, 2007-08, PQA handled 19.76 million tonnes of cargo depicting a growth rate of 10% over the same period last year. Cargo volume also surpassed the budget targets by 3% during the same period under review.
Gwadar Port: Gwadar, a district of Balochistan enjoys a strategic position on the coastline with immense trade potential for not only Pakistan, but also for the region in general. The purpose of developing a port at Gwadar is to stimulate economic growth in the western and northern parts of Pakistan, utilizing the available coastline resources of the country and also providing and outlet for land-locked Central Asian Countries and Afghanistan through transit trade and offering trans-shipment facilities. With a fully equipped and well-functioning port at Gwadar, Pakistan will be able to promote trade and transport with Gulf States, China, Europe, Africa and Central Asian Countries; unlock the development potential of hinterland; divert the influx of human resources from upcountry to Gwadar instead of Karachi; provide a socioeconomic uplift of Gwadar, the province of Balochistan and the country in general; establish shipping related industries; reduce the congestion and dependency on existing ports; and serve as a regional hub for major trade and commercial activities.
An efficient transportation system plays a vital role in the economic development of a country. The government vision for economic growth and poverty reduction requires massive investment and development of infrastructure for sustainable economic growth. Pakistan Railways has a definite edge over roads for long haul and mass scale traffic movement both for passengers and freight in addition to providing a safe, economical, and environment friendly mode of transport. Throughout world history, rail traffic has played an important part in the development and economic prosperity of nations. Railways are a valuable source of employment while generating large Transport and Communications 229 amounts of revenue to the benefit of the economy.
The Pakistan Customs Authority, under the Federal Board of Revenue, enforces customs laws and regulations, imposing duties on imported goods based on their classification and applicable trade agreements. Importers and exporters must adhere to specific clearance procedures, including filing documentation like the Import General Manifest (IGM) or Export General Manifest (EGM) and paying relevant taxes. Tariff rates have significantly decreased since 1994, with current rates set at 25% for consumer goods, 10% for intermediate goods, and 5% for raw materials. The government retains the authority to restrict or prohibit certain imports and exports under exceptional circumstances. Additionally, measures are in place to protect intellectual property rights by collaborating with rights holders to combat counterfeit goods. The adoption of electronic systems like WeBOC has streamlined customs processes, enhancing efficiency. While there are no restrictions on exports to Pakistan, exporters must register with the Pakistan Export Promotion Office. Customs value is determined based on transaction value adjusted per WTO guidelines. Certain goods face import/export prohibitions due to national security or health concerns, necessitating permits for compliance.
The State Bank of Pakistan (SBP) oversees the country"s banking regulations, focusing on foreign exchange and capital movement. Authorized Dealers (ADs) facilitate money transfers, both domestically and internationally, through various banking channels like wire transfers and online banking. The SBP"s regulations aim to prevent money laundering while ensuring stability in the foreign exchange market. Since 1994, importers can withdraw foreign currency without prior authorization for payments through FEBC remittances. The central bank also manages currency conversion rates based on economic factors such as inflation and trade partner currencies. Pakistan"s tax system includes direct taxes collected by the central government, while local governments impose additional taxes. In 2017, Pakistan"s imports totaled $55. 6 billion, ranking it as the 47th largest exporter globally, with exports at $24.
8 billion. Capital movements are regulated by the SBP, requiring reporting and approvals for certain transactions. Investors must comply with these regulations when transferring funds for investment purposes. Banks enforce Know Your Customer (KYC) guidelines to combat financial crimes by verifying customer identities during significant transactions.
Pakistan"s transportation sector is crucial for its economic development, with a focus on enhancing trade through its ports and railways. The Karachi Port Trust (KPT) and Port Qasim are key players in handling cargo, with KPT managing 30. 8 million tons in 2006-07 and showing a rise in activity in the current fiscal year. Port Qasim, catering to 40% of national shipping needs, recorded a growth of 10% in cargo handling during the same period. Gwadar Port holds significant potential for regional trade, aiming to connect Pakistan with Central Asia and beyond, while also promoting local economic growth. The government emphasizes infrastructure investment to support sustainable economic growth and improve supply chain solutions across the region. Railways are highlighted as an efficient alternative for long-haul transport, contributing to both passenger and freight movement while being environmentally friendly. Overall, the transportation landscape in Pakistan is evolving to meet the demands of international trade and regional connectivity. "
Recent economic changes in Pakistan have led to significant growth, particularly in manufacturing and financial services. The country has improved its foreign exchange position and reduced foreign debt, aided by the International Monetary Fund and U. S. debt forgiveness. GDP growth rates have steadily increased, reaching approximately 8. 4% by mid-2005, with the service sector now contributing about 53% to GDP. Despite these advancements, challenges such as inflation and lower reserves persist. The Karachi Stock Exchange has seen peaks alongside other emerging markets, attracting substantial foreign investment across various industries including telecommunications, textiles, and aerospace.
Sialkot has emerged as a key industrial hub, generating billions in exports from sectors like sports equipment and auto parts. The potential for growth in aerospace capabilities could further enhance economic development, with ongoing research into missile technology linked to the space program. Overall, while Pakistan"s economy shows promise through diversification and investment opportunities, it must navigate existing economic pressures to sustain its upward trajectory. "
Pakistan, officially the Islamic Republic of Pakistan, is located in South Asia and shares borders with India, Afghanistan, Iran, and China. It has a diverse geography that includes mountains, fertile plains, and deserts. The country has a population of over 228 million people and is the second-largest Muslim nation globally. Its capital is Islamabad, while Karachi is its largest city. Pakistan"s economy is a mix of agriculture, industry, and services, with textiles and agriculture being significant export sectors. The nation has a rich cultural heritage influenced by various ethnic groups and is known for its traditional music, dance forms, and sports like cricket. Despite facing political and economic challenges since its independence in 1947, Pakistan has experienced periods of growth. The country also offers numerous tourist attractions ranging from historical sites to natural beauty. "
