Pakistan should implement national single window system, PCS, urges ADB

Pakistan should implement the national single window system and port community system (PCS) to reduce cargo dwell time in seaports, recommended Asian Development Bank (ADB) in its latest report.

The report titled CAREC Corridor Performance Measurement and Monitoring Annual Report 2019, said that the Corridor Performance Measurement and Monitoring (CPMM) has consistently identified that containers for Afghan transit trade experience significant dwell time in Karachi: implementation of a national single window system, proposal for which has been drafted by Pakistan authorities, and PCS should considerably decrease dwell time.

It also urged for the adoption of an AEO program, the Federal Bureau of Revenue and Pakistan Customs are developing an AEO program which will adopt risk-based management and improve the efficiency of cross-border trade. Once established, Pakistan’s AEO program could explore opportunities for mutual recognition arrangements in AEO with other Central Asia Regional Economic Cooperation (CAREC) member countries, the report said .

The report also called to develop TIR parks close to high-traffic BCPs. CPMM information indicates the lack of well-designed parking areas at BCPs as a contributory factor to obstruction of vehicles and delays. Better parking area design and queuing systems could improve efficiency and speed up border crossing.

It further called to ratify the International Carriage of Goods on Road Act. “Pakistan does not yet have a domestic regulation on the international carriage of goods on road, which is a fundamental condition to implement the CMR. This regulation should also recognize the role of insurers in underwriting a limited liability for road carriers. This would standardize such practice in the country and formalize the treatment of claims,” said the report.

Lastly, the report emphasized on the promotion of other modes of transport for freight. Pakistan’s over-reliance on road transport increases the cost of freight and is not sustainable, says the report.

“Greater adoption of freight on rail and inland waterways would reduce freight costs and boost low-unit value exports such as agricultural produce," it said. Pakistan Railways created a freight transportation company that focuses on cargo and started freight train services between Karachi and Lahore.

It said that private investment could be encouraged to attract more funding for a greater number of locomotives and railcars, to increase the capacity of this rail transport option. “To spearhead inland waterways, the creation of a national inland waterways transport authority would be the first step.”