Planning Commission has planned to establish "Exclusive Industrial Zones" for Chinese and other Central Asian Entrepreneurs near the Industrial Cities of Karachi, Lahore, Faisalabad and Peshawar under National Trade Corridor Programme.
According to Planning Commission sources, the National Trade Corridor (NTC) will also boost the emerging trade and business status of the Gwadar Port, which will be supported by the World Bank and Asian Development Bank.
Under National Trade Corridor all efforts are expected to help increase Pakistan's exports from $17 billion in 2006 to around $250 billion by 2030. This program would not only target the trade facilitation and infrastructure development, but also will serve for developing an energy and industry corridor in future.
In order to create a growth-facilitating infrastructure a major initiative namely the "National Trade Corridor" has been launched, to revamp the whole transport sector including ports, roads, railway, aviation etc, said official sources.
Official sources mentioned that a framework to develop and improve the North South Corridor has been incorporated in it. The framework takes a holistic and integrated approach to reduce the cost of doing business in Pakistan by improving the trade and transport logistics chain and bringing it up to international standards.
The initiative is in line with Medium Term Development Framework (MTDF).
The government's strategy to establish a multi-modal transport system is based on emphasis on asset management with consolidation, up-gradation, rehabilitation and maintenance of the existing system; enhanced private sector participation in transport and use of modern technology to increase sector efficiency, said Planning Commission sources.
The strategy aimed at enhancing regional connectivity to improve links to the Central Asian States, Iran, Afghanistan and India. With the development of the North-South and East West trade links, energy and industrial corridors with China, Central Asian Republics, Afghanistan and Iran would also be developed. Basic theme of the National Trade Corridor Improvement Program is "Decreasing the cost of doing business through improvements in the trade logistics".
Basic thrust would be to get results through short term / long term measures. In the short term, quick results would be achieved with small investments through policy interventions, systematic & procedural improvements, reducing costs & time and eliminating red-tapism.
Long-term measures include higher investments on infrastructure, deep-rooted institutional reforms to ensure sustainability & conducive environment for pragmatic investment by the private sector.
An efficient and well-integrated transport system facilitates the development of a competitive economy and creates vast opportunities to reduce poverty. It also ensures safety in mobility and augment regional connectivity. All these efforts are expected to help increase exports from $17 billion in 2006 to around $250 billion by 2030.
Future plan and the government's strategy, prepared by Planning Commission is as under:
-- Logistic costs will come down from 11 percent of Foreign Trade Account to 6.11percent.
-- Customs clearance times will reduce from 4 days to less than one day.
-- Freight Forwarding Rules (FFR) formulated by Central Board of Revenue (CBR) and Pakistan.
-- Institute of Freight Forwarder Association (PIFFA) has started; State Bank of Pakistan (SBP) now allows external remittance to Freight Forwarded (FF); FF trainings are being organised.
-- Duty rationalised on equipment for establishing wholesale/retail chain stores.
NATIONAL TRADE FACILITATION STRATEGY WOULD BE DEVELOPED:
-- Private terminal operators directed to install scanners-specifications and the time lines communicated to the terminal operators by CBR.
-- Road Freight Industry (RFI) Strategy Paper has been Prepared;
-- Duty on multi-axle trucks and prime movers rationalised.
-- Stakeholder consensus developed to allow import of second hand multi-axle trucks to all industry but age limited to 4 years.
-- Port Qasim Authority (PQA) and Karachi Port Trust (KPT) Business Plan (covering study of management practices of Malaysia, Singapore, and other best practice Ports) are under preparation.
-- Reduction in wet charges by 15 percent and reduction in free dwell time at port by 15 percent has been notified and being implemented. Reduction in free dwell time has indirectly increased the port capacity. Double charging during port handling by the shipping lines and terminal operators would be removed.
-- World class airlines such as Virgin Atlantic, Singapore and Ettihad have been invited to start their operations. Bi-lateral and Air Service Agreements being expended with several countries.
-- Operational frequencies have been given to 7 foreign airlines resulting in 29 additional landings per week. These include Thai, Cathay Pacific, Malaysian, Turkish, Bahrain, Gulf & Ettihad.
-- External communications/ media strategy has been developed to inform all stakeholders about the National Trade Corridor Improvement Program (NTCIP) Vision.
-- Deep draught vessels contribute to reduce the costs of trade. Berths and channels at Karachi and Qasim ports have been planned to be deepened to attract large size vessels having deep draughts.
-- KPT, PQA and Gwadar Port Authority (QPA) would be transformed into commercial organisations with corporate culture.
-- A "Ports Maintenance & Management Training" program is under preparation for young officers from all the three ports.
-- Pakistan Railways has become the first government entity to prepare draft Corporate Business Plan.
-- Next step is to develop a separate dedicated freight business unit to improve the railway's financial health and then gradually transform the Railways into a commercial corporation.
-- Numbers of freight trains from port to upcountry and back have increased from one to 5 trains daily.
-- Projects of doubling of main line track and induction of new locomotives, flat-bed container wagons & new passenger coaches have been approved and under implementation. State-of-the-Art autoblock, computer based signalling system on the main line has been planned to ensure better speed & safety.
-- Freight Business Unit would be established after completion of financial restructuring of PR to establish separate line of business.
-- Proactive marketing has resulted in agreement with private parties to start two new express freight trains thus increasing total to 5 fast cargo trains overall.
-- National Expressway Corridor Improvement/ Rehabilitation Plan costing US $2.0 billion has been appraised and approved.
-- The spot interdictions on N-5 have been reduced by 70 percent, which has resulted in reduction in the turn around time.
-- Pilot overloading control program is being implemented by NHA.
-- New Aviation Policy is being developed with contribution of all stakeholders including public/private sector and international development partners to bring the civil aviation at par to the best international standards.