Sunday, November 24, 2019

Pakistan's Longest Motorway M5 to Boost Road Transport Sector

Recent opening of M5, Pakistan's longest access-controlled motorway, is a boost for the nation's fast-growing road transport sector. The 6-lane 392 kilometers long M5 motorway is longer than than the 375 kilometers long 6-lane M2 motorway. After M5 opening, the only missing section in planned 1,694 kilometer long 6-lane Peshawar-Karachi motorway is 296-kilometer Sukkur-Hyderabad M6 motorway. Growing network of high-speed motorways is opening up less developed parts of the country for investment, business and tourism. It is aiding agriculture, trade and commerce by moving freight and people faster. Transport sector is part of the service sector which constitutes 54% of the national economy. Service sector includes education, health, financial services, legal services, communication services, hotels, restaurants, recreation, entertainment, retail and wholesale, personal services, etc. It is growing faster than industry (26%) and agriculture (20%) sectors.



Here's a brief overview of Pakistan's road transport sector as summarized by Karandaz research:

1. The Transport, Logistics and Communications (TLC) sector is estimated to have contributed 13.3% of GDP in 2016-17. Of this, more than 62% was contributed by the road transport sector. In 2014-15 the sector employed 3.1 million people.

2. Most traffic intensive routes are a) Karachi to Peshawar via Hyderabad-Multan-Faisalabad-Rawalpindi; b) Sukkur to Quetta; c) Karachi to Quetta via the RCD Highway; and d) N-5 National Highway segment of Multan-Lahore-Gujranwala-Rawalpindi.

3. Passengers and freight are the primary segments of road transport sector. The fastest growing freight segment is the delivery vans at 7.5% annually, while for the passenger segment it is motor cabs and taxis at 5.9% annually.

4. Road transport grew at an average rate of 6.2% annually between 1991 and 2016, faster than the average GDP growth rate 4.4% during this period. China-Pakistan Economic Corridor (CPEC) is expected to accelerate transport sect or growth with construction of roads and other transport infrastructure.

5. Freight transport sector is highly lucrative with profit margins ranging from 21% for large trucks to 43% for rickshaws. Passenger transport sector is even more lucrative with 30% profit margin for wagons to 50% for luxury buses.

Here's a video of Uch Sharif service area on M5 Sukkur-Multan Motorway:

https://youtu.be/NC6J8YRAJS4





34 comments:

Riaz Haq said...

WEF 2019 Ranking of Pakistan Among 141 Countries (Page 447) :

http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf


Transport Infrastructure 69/141

Road Connectivity 52

Quality of Road Infrastructure 67

Riaz Haq said...

HIGHWAYS OF HOPE
A closer look at Balochistan's roads of change
Muhammad Amir RanaUpdated Oct 06, 2019 11:22pm

https://www.dawn.com/news/1509153

Newly constructed highways in Balochistan are not only bringing connectivity to remote areas of the province. They are also boosting a process of unplanned urbanisation which is bringing about socioeconomic and political shifts within the populace and challenging stereotypes about it


The newly constructed M-8 — which connects Gwadar to the old RCD highway near Surab and passes through Turbat, Hoshab, Panjgur and Basima — had been under construction since 2007 but the project only completed in 2016 because of the security situation and fiscal difficulties. Dozens of labourers from Sindh and south Punjab lost their lives during its construction in attacks by insurgent groups.

Now that the project has finished it has created new avenues of economic activity for the inhabitants of the areas it crosses, but in a province with a long history of people being suspicious of development projects, some are still sceptical of the M-8.

Curiously, this highway is also called the CPEC highway, although it was not built by China or under the CPEC infrastructure projects; the Frontier Works Organisation (FWO) constructed the highway which, through RCD highway, connects eastern Balochistan with Quetta and rest of the country.

Some locals believe this route will be used by China to transport goods and oil from Gwadar to the Xinjiang region. They fear heavy traffic will not only damage the highway but will also make commuting difficult for locals. Adding fuel to the fire, the recent heavy rains dilapidated parts of the two-year-old M-8 and locals fear that heavy containers will further deteriorate the roads. Others say that the highway is well made but, being a single road, it will get blocked or slow down public transport when a convoy of five to 10 containers will drive on it. These perceptions will only be tested when the load will come on the highway.

Locals also think that this highway has been built to facilitate trade and oil supply to China. And the neighbouring country should set up an industry, training institutions and other infrastructure alongside the road for the development of the area. These narratives appear to be a bit simplistic. The highway was planned before the CPEC and the Chinese footprints in the province. Nonetheless, these claims say a lot about the high hopes locals have pinned on the highway.

------------------------

The real estate boom in Gwadar is no more the only “success” story in the region. Turbat city is following in its footsteps. Real estate in Turbat is attracting investment from not only the Makran region, but also from other parts of the province, which has transformed the whole city and become a symbol of the urbanisation of Baloch towns.

Turbat city has grown. Turbat University’s beautiful campus on the highway and billboards of new housing societies that frequently pop up along the route tell the story of expansion of a city which has welcomed a number of inhabitants from neighbouring towns. Five degree colleges affiliated with Turbat University offer better opportunities of higher education to students in the adjoining districts of Panjgur, Gwadar and Awaran. Apart from the university, the Makran Medical College, smaller elementary colleges and other public and private educational and health institutions have made Turbat a major urban centre in Balochistan after Quetta. These facilities are not yet comparable with those in major cities of Punjab and Sindh, but they have reduced the locals’ dependence on Karachi and Quetta in terms of educational and employment opportunities.

Riaz Haq said...

#Pakistan #Railways reports record income in 2018-19. PR increased the number of rail #passengers to 70 million. PR says it recorded a 7% increase in #freight volume compared with a 4% increase in 2017-18 by introducing special container trains. #transport https://www.railjournal.com/financial/pakistan-railways-achieves-record-income-in-2018-19/#.XevzV4HDHoc.twitter

PR faced higher costs in 2018-19 of Rs 6bn due to pay increases, higher pension contributions, and rising fuel charges. Nevertheless, it managed to cut its annual deficit by Rs 4 billion from Rs 36bn in 2017-18 to Rs 32bn in 2018-19.

PR refurbished 24 passenger trains at its workshops in Lahore and Islamabad. These trains attracted around 8 million passengers and generated Rs 5bn in additional revenue. Overall, PR increased the number of rail passengers to 70 million. PR also introduced free Wi-Fi at its major stations and launched apps for the sale of tickets.

PR says it recorded a 7% increase in freight volume compared with a 4% increase in 2017-18 by introducing special container trains.

Infrastructure upgrades
During 2018-19, PR started the installation of a state-of-the-art command and control centre at its headquarters in Lahore to improve safety and operating efficiency on the network.

Under the China Pakistan Economic Corridor, PR signed an agreement with China to upgrade 1872km of track on the Karachi – Peshawar main line. PR also floated tenders to upgrade the Attock – Jacobabad – Kotri, Rohri – Jacobabad – Quetta/Taftan, and Gwadar main lines.

PR claimed 155 hectares of land worth Rs 30 billion along 38km of the 43km Karachi Circular Railway from people encroaching on the line.

PR managed to reduce diesel fuel consumption by 3.5 million litres despite operating 24 additional passenger trains, and it planted 500,000 trees under the Clean and Green Pakistan campaign.

The hospitals, schools and colleges run by PR were offered to the private sector as either public private partnership (PPP) schemes or joint ventures.

Riaz Haq said...

Pakistan's services sector accounts for 54 percent of GDP and little over one-third of total employment.


https://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-79.pdf


Services sector has strong linkages with other sectors of economy; it provides essential
inputs to agriculture sector and manufacturing sector. The objective of this paper
is to analyse the importance of services sector in an economy and better
understanding about Pakistan services sector. The study also explores the
relative performance of services sector and its contribution in the economic
growth, trade and employment generation.

Classification of Services Sector in Pakistan
I. Distributive Services
· Transport, Storage and
Communications
® Railways
® Water Transport
® Air Transport
® Pipeline Transport
® Road Transport
® Mechanised
® Non- Mechanised
® Communications
® Storage
® Water Transport
· Wholesale, Retail Trade and Hotels
and Restaurants
® Wholesale and Retail Trade including
Imports
® Purchase and Sale Agents and Brokers
® Auctioning
II. Producer Services
· Financial Institution
® State Bank of Pakistan
® Commercial Bank
® Other Financial Intermediaries
® Insurance Corporations and Pension Funds
III. Personal Services
· Entertainment and Recreation
Services
· Ownership and Dwelling
IV. Social Services
· Public Administration and Defense
· Social Community and Private
Services
® Education
® Medical and Health Services
® Other Household and Community Services

Riaz Haq said...

91-Kilometer 4-lane #Lahore-#Sialkot #Motorway M11 opened for traffic. M11 has 7 interchanges, 6 flyovers, 24 bridges, 22 underpasses, 13 subways and 274 culverts. Connects #industries in Sialkot, #Gujranwala & #Gujrat to Lahore in a big boost to #exports. https://nation.com.pk/19-Mar-2020/lahore-sialkot-motorway-opened-for-traffic

The project will reduce total distance between both the cities from two and half hours to only 50 minutes.

The project was initiated by the previous government of Pa­kistan Muslim League-Nawaz (PML-N) in 2017. The project is completed by Frontier Works Organisation (FWO) on Built Operate Transfer (BOT) mode. The maintenance and operation of said motorway would remain with FWO for next 25 years after which the road would be hand­ed over to the National High­ways Authority.

When contacted, a spokesper­son for NHA Muhammad Saleem confirmed that the motorway has been opened for commut­ers on Wednesday. He informed that the inauguration ceremony of this project could not be ar­ranged due to the emergence of corona virus.

According to the NHA docu­ments, the four-lane motorway having two lanes on each side has been completed at the cost of around Rs.43 billion. There are 7 interchanges, 6 flyovers, 24 bridges, 22 underpasses, 13 subways and 274 culverts have been included in this project.
The motorway starts from La­hore where it is connected with eastern bypass and Ring Road while its first interchange is sit­uated at Kala Shah Kaku which joins it with N-5, commonly known as GT Road as well as the Lahore-Islamabad Motorway (M-2).

Its second interchange links Muridke and Narowal while third interchange connects Aimanabad and Wando. The fourth interchange links district Gujranwala and Pasroor while the fifth one is between Daska and Pasroor.

The sixth interchange falls be­tween the Daska and Sialkot while the last interchange is sit­uated around 15km in the west of Sialkot city.

It is pertinent to mention here that this is the place which is considered as a gateway to Sialkot, Kharian and Wazirabad.

When contacted by The Na­tion, MNA from Sialkot and a senior leader of PML-N Kha­waja Muhammad Asif main­tained that the completion of Lahore-Sialkot Motorway is the fulfilment of another promise made by his leader Nawaz Sha­rif — the former prime minister.

“It was the vision of Nawaz Sha­rif to connect all regions through infrastructure to strengthen the federation of Pakistan”, he said, adding; “We had the plan to ex­tend said motorway from Sialkot to Dina via Kharian and then it was to be linked with proposed Mirpur to Muzaffarabad Motor­way and Lahore-Islamabad Mo­torway (M-2) by crossing Rawat at Rawalpindi.

He criticised by saying that the incumbent government is visionless and its agenda is de­struction not the development.

The completion of this long-awaited project will im­prove connectivity of industri­al triangle of Sialkot, Gujranwa­la, Gujrat-Wazirabad to the rest of the country especially Lahore — resulting in a big boost to exports.

The area was a key manufac­turing part of the country, ac­counting for about 15 percent of Pakistan’s annual exports. Exports from Sialkot included sports goods, surgical equip­ment, leather garments, riding gear, polo equipment, badges, motorbike accessories and ag­ricultural products including the world-famous Basmati rice. The neighbouring Gujranwala is the center of ceramics and tex­tile products, while Wazirabad and Gujrat provide a big share of cutlery.

Riaz Haq said...

#Pakistan moves to save face as #coronavirus hits Belt and Road. "The world....will be a different place by the time the pandemic is over. Investment flows will shrink, and China will be one of the very few countries with available capital" #China #CPEC https://asia.nikkei.com/Spotlight/Belt-and-Road/Pakistan-moves-to-save-face-as-coronavirus-hits-Belt-and-Road2

The government of Pakistan has ordered the resumption of all infrastructure and energy projects that are part of China's Belt and Road Initiative, but experts believe the move is a matter of face-saving.

Work on the China-Pakistan Economic Corridor, a major piece of the Belt and Road, stopped when the novel coronavirus started to spread in Pakistan in February. According to Johns Hopkins University data, Pakistan has confirmed 9,216 cases as of Tuesday, including 192 deaths.

Naghmana Hashmi, Pakistan's ambassador in Beijing, told Pakistani media on Sunday that a number of mechanisms have been established to complete all corridor projects within the prescribed time frame. But analysts say restarting the projects at the height of the pandemic is meant to spare Beijing and Islamabad embarrassment.

----------------

Amid the economic crisis, some have questioned the economic viability of Belt and Road projects. According to the Planning Commission of Pakistan, the country's top development planning body, Chinese skilled laborers are paid 1,300% more than Pakistani laborers for the Main Line 1 (ML-1) railway project, a discrepancy it says must be rationalized.

The commission has also asked Pakistan Railways to evaluate the impact of a huge Chinese loan of almost $9 billion for the ML-1, which is the single largest infrastructure project for the corridor in the country. Pakistan expects 90% of the funding for the ML-1 to come from the Chinese loan. The commission fears the terms may saddle the country with heavy debt if it is not looked into now.

On the other hand, there are bullish voices who say that resuming Belt and Road projects is worth the risk.

Hasaan Khawar, a public policy analyst based in Islamabad, believes the corridor's special economic zones can help Pakistan solve its economic woes. "The world is changing fast, and it will be a different place by the time the pandemic is over. Investment flows will shrink, and China will be one of the very few countries with available capital," Khawar said. He added that the corridor and the zones provide a ready framework for Pakistan to attract Chinese capital and should, therefore, be a priority for Pakistan.

Malik believes that the aftermath of the COVID-19 crisis will leave China better positioned as a global power and savior of a world in deep crisis. After this, the world will see a continuation and expansion of Belt and Road projects, he says.

Kugelman sees the corridor as the most concrete and active part of the Belt and Road and says its trajectory will be shaped to a great extent by how the corridor develops. He adds that if corridor projects are put on hold until the pandemic has ended, the Belt and Road as a whole could take a pause. If they move ahead, that portends more forward movement for the initiative in the near future, Kugelman says.

Riaz Haq said...

306 Km #Sukkur-#Hyderabad Motorway in #Pakistan to revolutionize interior #Sindh. It will be constructed on a build-operate-transfer (BOT) basis. It will complete #CPEC eastern route from #Khunjarab Pass to #Gwadar via #Karachi - Profit by Pakistan Today https://profit.pakistantoday.com.pk/2020/07/18/sukkur-hyderabad-motorway-to-revolutionise-interior-sindh-bajwa/#.Xxh85hpt-VA.twitter

Lt Gen (r) Asim Saleem Bajwa, chairman of the China-Pakistan Economic Corridor (CPEC) Authority, said on Saturday that the Sukkur-Hyderabad (M-6) Motorway project will bring a development revolution in interior Sindh.

In a tweet, Bajwa, who is also the prime minister’s special assistant on information and broadcast, said that the 306-kilometre highway was approved in a meeting of the executive committee of the National Economic Council (NEC) which will be constructed on a build-operate-transfer (BOT) basis. BOT is a model for large-scale infrastructure projects, wherein a private entity receives a concession from the public sector to finance, design, construct, own, and operate a facility.

He said following the construction of the project, the eastern route of the CPEC (Peshawar-Karachi) will also be completed

Bajwa added that the project would also connect eastern Balochistan to the countrywide network of motorways.

Riaz Haq said...

ML-1 Project: How can an outdated railway line change the destiny of Pakistan? - BBC URDU

https://youtu.be/D7pTwYlzkrI

یک وقت آئے گا جب پاکستان میں ٹرینیں بنا توقف 160 کلو میٹر فی گھنٹہ پر دوڑیں گی اور لاہور سے اسلام آباد آپ صرف ڈھائی گھنٹے میں پہنچ پائیں گے۔ کراچی سے حیدرآباد تو صرف ایک گھنٹہ لگے گا۔ یہاں تک کہ مال بردار ٹرین بھی 120 کلو میٹر فی گھنٹہ پر چلے گی۔ ایسا اس وقت ہو گا اگر آٹھ برس کی مدت میں کراچی سے پشاور تک جانے والی مین لائن ون چین کی مدد سے بحال ہو پائے گی۔ اس سے نہ صرف ریلوے کو نئی زندگی ملے گی، پاکستان کی معیشت بھی اس سے مستفید ہو گی۔ ایم ایل ون کیا ہے، کس حال میں ہے اور کیسے بحال ہو گی، دیکھیے ہمارے ساتھی عمر دراز اور فرقان الٰہی کی اس رپورٹ میں

Riaz Haq said...

#China vows $100 million grant for #Sindh #infrastructure. Two governments signed a letter of exchange for rehabilitation of specific sections of National Highway (N-5) project. Under the agreement, China will provide grant assistance of RMB 659.8 million https://www.thenews.com.pk/print/767335-china-vows-100mln-grant-for-road-infrastructure-in-sindh


The signing ceremony was witnessed by Ambassador of China to Pakistan Nong Rong and Minister for Economic Affairs Khusro Bakhtyar. Rong said N5 is an important road that extends from the south part to the north and west border in Pakistan, and carries a large amount of traffic capacity. Four sections between Hala and Moro will be rehabilitated under the project.

“Unfortunately, this road was seriously damaged by the record flood in 2010,” the envoy said in a statement. At the request of the Pakistani government, the Chinese government helped repairing parts of N5 and N55 sections during 2011 and 2016. With the joint efforts by the Pakistani and Chinese workers, the rehabilitation work was completed at the end of 2016, and greatly improved the road conditions of the relevant sections.

Considering the importance of the N5 road, the Chinese government agrees to rehabilitate the remaining 66 kilometers of the N5 road with Chinese grant in accordance with the previous bilateral agreement.

The new project of rehabilitation of N5 road is the largest road project funded by Chinese grant in recent years in Pakistan. The implementation of this project will further increase the traffic capacity, while facilitating people’s travel along the route. Construction of the project will also create considerable employment, and promote related building materials and transportation sectors along the route. The Embassy will work closely with EAD and other relevant departments to ensure the project starts at the earliest.

During the meeting, bilateral economic relations, CPEC projects and other matters of mutual interest were discussed.

The minister for economic affairs lauded the grant assistance extended by China for various infrastructure and socioeconomic projects in Pakistan. The minister also appreciated the significant work of joint working groups on socioeconomic development and transport infrastructure under CPEC.

“Socioeconomic projects agreed therein are in line with the vision for socioeconomic uplift of the common people and enhanced economic activities in the country,” he said.

The second meeting of the joint working group on socioeconomic development under the CPEC framework was held in November via video link to discuss and review the projects under the $1 billion Chinese grant. The seventh meeting of the joint working group on transport infrastructure was held last year.

China is leading an estimated $60 billion worth of projects in Pakistan under its road and belt initiative that aims at infrastructure development and acceleration of the economic integration of countries along the route of the historic Silk Road.

CPEC is an integral part of the initiative and Pakistan is the foremost territory to make the initiative a success.

Riaz Haq said...

Pakistan Logistics Industry to 2020 - $30.77 Billion Outlook and Growth Opportunities - Research and Markets | Business Wire


https://www.businesswire.com/news/home/20160921005655/en/Pakistan-Logistics-Industry-to-2020---30.77-Billion-Outlook-and-Growth-Opportunities---Research-and-Markets

Pakistan Vision 2025 seeks to enhance the national transportation infrastructure by establishing an efficient and integrated transportation and logistics system. Establishing industrial parks and developing SEZs along the China-Pakistan Economic Corridor (CPEC) will strengthen the transportation network and logistics infrastructure. Road freight transportation contributed over 90% of the goods transported by land.

Rail freight is likely to gain share due to modernization and expansion. High priority is given to road network development. Private sector participation in logistics infrastructure development is likely to gain momentum, and transportation and warehousing are likely to lead logistics industry growth during 2016-2020.

The potential opportunities in the logistics industry in Pakistan, is estimated at approximately US $ 30.77 billion in 2015. Key targets set in the national development initiatives for the transportation sector include reduction in transportation costs, effective connectivity between rural areas and urban centres, inter-provincial high-speed connectivity. Also high priority is given for the development of integrated road/rail networks between economic hubs (including air, sea and dry ports) and high capacity transportation corridors connecting with major regional trading partners.

Up-gradation of all major airports to trans-shipment hubs, development of cargo villages, modernization of rail transport, E-commerce, CPEC related investments in industrial centres and Special Economic Zones (SEZs) will serve as primary macro drivers for logistics sector growth. CPEC related projects intend to upgrade and modernize road transport and related logistics infrastructure such as logistics park and establishment of cargo villages at major airports. Hence, high priority is given for road network development; private sector participation in logistics infrastructure development is likely to gain momentum.

Storage and Warehousing demand from CPEC related industrial corridors are likely to derive increased storage and warehousing requirements including cold chain logistics, establishment of Cargo Villages Ports will facilitate goods traffic to central Asian countries and evolve as a major transhipment hub in the region.

Riaz Haq said...

Bankability of the Transport Sector by Karandaaz

https://karandaaz.com.pk/wp-content/uploads/2018/11/Bankability-of-the-Transport-Sector-2-1.pdf

Executive Summary:

1. The Transport, Logistics and Communications (TLC) sector is estimated to have contributed 13.3% of GDP in 2016-17. Of this, more than 62% was contributed by the road transport sector. In 2014-15 the sector employed 3.1 million people.

2. Most traffic intensive routes are a) Karachi to Peshawar via Hyderabad-Multan-Faisalabad-Rawalpindi; b) Sukkur to Quetta; c) Karachi to Quetta via the RCD Highway; and d) N-5 National Highway segment of Multan-Lahore-Gujranwala-Rawalpindi.

3. Passengers and freight are the primary segments of road transport sector. The fastest growing freight segment is the delivery vans at 7.5% annually, while for the passenger segment it is motor cabs and taxis at 5.9% annually.

4. Road transport grew at an average rate of 6.2% annually between 1991 and 2016, faster than the average GDP growth rate 4.4% during this period. China-Pakistan Economic Corridor (CPEC) is expected to accelerate transport sect or growth with construction of roads and other transport infrastructure.

5. Freight transport sector is highly lucrative with profit margins ranging from 21% for large trucks to 43% for rickshaws. Passenger transport sector is even more lucrative with 30% profit margin for wagons to 50% for luxury buses.

Riaz Haq said...

Globally, logistics is a $4.3 trillion industry, contributing an average of eight to 10% to the GDP, creating thousands of new jobs and improving export competitiveness substantially. A look at the World Bank’s Logistics Performance (LPI) for the last 10 years provides sufficient evidence; the countries ranked in the top 20 include the 10 strongest economies in the world.


https://www.globalvillagespace.com/pakistans-logistics-industry-hampering-industrialisation-and-growth/

The performance of the logistics sector provides a stark contrast to the economic recession Pakistan has been mired in. As of December 2018, the logistics sector is valued at $34.2 billion, registering an annual growth rate of 18% between 2017 and 2018 (source: Ministries of Communications and Postal Service). However, experts are quick to point out that the figures present only part of the picture because a large segment of the sector operates in the grey economy with no verifiable records or data.

There are about 2,500 logistic and freight forwarding companies in Pakistan that not only serve as shipping companies that transport cargo but also provide end-to-end solutions to customers facilitating trade through sea, air, road transport systems and a combination of these modes.

Recently, the transport industry has jumped to protests and suspension of operations due to policy changes. Operations were impact when the government attempted to revise the axle load limits which stirred controversy between the transporters, business community, and the government. The National Highway Authority (NHA) increased the fines imposed on violations approximately 10 times which was not received well by transporters. A speeding fine, for example, which was previously RS. 750 has now gone up to RS. 10,000 for some vehicles.

Riaz Haq said...

Pakistan is ranked at 95 among 167 countries on the aggregated Logistic Performance Index (LPI), trailing behind a number of Asian countries due to lack of spending on infrastructure projects including airports and highways.

https://propakistani.pk/2019/07/24/pakistan-ranks-among-the-worst-in-logistic-performance-index/

India is at 35th position while Sri Lanka stands at 92nd place in the list. Regional countries including Thailand, Vietnam, Indonesia, Malaysia, and the Philippines are far ahead of Pakistan, according to a report published by the State Bank of Pakistan.

Where’s CPEC?
Luckily, Pakistan’s performance on the infrastructure component of the LPI is likely to improve, particularly in the wake of CPEC-related development of roads, railways, and the Gwadar port. In addition, CPEC is also expected to boost the prospects of the shipping industry, and forward-thinking investors are reportedly keen to explore such opportunities.

Why Logistics Sector Holds Great Value?
A more concerted policy focus is required to tackle the shortcomings reflected in other LPI components. These can be viewed as a subset of the ease of doing business, and may thus be added to the agenda items that the country is looking to address in order to attract more FDI and boost exports.

The efficient logistics lie at the heart of competitiveness, both at the firm and country level. They enable firms to connect with domestic and international markets and affect a country’s prospects of integration within global value chains.


Logistics impact trade, job creation, and economic development. Given its importance, there is a need to track logistics performance and take corrective action as needed.

The Criteria
To this end, the World Bank’s LPI serves as a benchmarking tool that scores and ranks logistics performance. The index can be further categorized into 6 distinct components, namely:

International shipments: The ease of arranging competitively priced international shipments
Logistics competence: The competence and quality of logistics services
Infrastructure: The quality of trade and transport-related infrastructure (for example, ports, roads, railroads, information technology)
Customs: The efficiency of customs and border management
Timeliness: The frequency with which shipments reach consignees within the scheduled or the expected delivery time
Tracking and tracing: The ability to track and trace consignments
World Bank’s aggregated LPI 2012-2018 provides a composite, weighted score and ranking based on four surveys, which minimizes random variations across individual surveys and facilitates comparison across 167 countries.

Moreover, the six components reveal that Pakistan’s weaknesses are broad-based. In four out of six components, Pakistan’s ranking ranges between 100 and 112. In fact, the country ranks last on the ‘Tracking and tracing’ component compared to selected South Asian countries.

Riaz Haq said...

Pakistan’s road network comprises of Motorways, National Highways, Expressways, Strategic
Roads, Provincial / District Roads and Farm to Market Roads as well as urban roads.
The entire road network has a length of more than 260,000 km with present road
density of 0.32 km per sq. km.
The urban roads are linked with district and provincial road which terminate at National
Highways hence form a complete highway network for inter and intra country
movement. Road transport presently dominates Pakistan’s transport system carries
about 90% passenger traffic and 95% of freight traffic. Pakistan’s National Highways
are differentiated in terms of North South and East West Corridors providing connectivity to the
population, divided into two parts by River Indus which flows through the center of country


https://www.piarc.org/ressources/documents/1217,Pakistan-Profile.pdf

Riaz Haq said...

Pakistan is striving to improve its ranking as the slowest for infrastructure expansion in the region, according to the World Bank, through a $2.4 billion government investment for highways, power and transportation this year.

The investment is in addition to billions of projects being funded by the World Bank, Asian Development Bank (ADB), Gulf Council Countries, JICA and the $56 billion China–Pakistan Economic Corridor (CPEC), which has been criticized for the high debt burden it will place on Pakistan.


https://www.enr.com/articles/51571-pakistan-invests-in-infrastructure-but-many-obstacles-to-overcome


Three metro projects are planned while several motorways and a revival of the circular rail in the port city of Karachi are also in the works. The Asian Infrastructure Investment Bank (AIIB) and the ADB have approved a $500 million loan to Pakistan for construction activity. Prime Minister Imran Khan’s has also announced a $30 billion plan to rehabilitate and develop the dying River Ravi into a perennial freshwater body. That project is being managed by Singapore’s Meinhardt Group.

But fundamental issues, such as safety, quality and contracting in the country, threaten to derail any progress, Said Mneimne senior vice president and managing director of Asia-Pacific for Hill International told ENR from Islamabad.

U.S. based Hill entered Pakistan’s real estate sector in 2017 as a project coordinator when it was awarded the $2.4 billion Crescent Bay 108-acre mixed-use development on reclaimed land at a seafront site about 12 miles from Karachi. Last year, the company was selected to provide construction consultancy services for the 2 million sq. m mixed-use development project called Elite Reverie, also known as Eighteen. The company is also pursuing opportunities in funded power and mass transit programs such as the Bus Rapid Transit in Karachi, Mneimne says.


“The consultant-contractor relationship in Pakistan, for example, is a tough one. Contractors treat themselves as labor demanding money every week instead of that laid out in the contract, or else threaten,” to leave, he said. “The concept of project management is not used here as the environment doesn’t justify it.”

Additionally, construction technology is from the 1960s, cranes are old and excavations must be done manually. However, he said, some clients are beginning to understand the need for improvements.

The Asian Development Bank is encouraging improvements and providing funding for things such as smart technologies and innovative development approach. The Pakistan government has frozen or reduced some taxes for construction projects and has granted amnesty to those with undeclared money if they invest in construction. This will be “to offset the negative impact of the Covid-19 pandemic on the national economy,” Prime Minister Imran Khan announced in January.


The government of Pakistan is also starting to focus on public-private partnerships. “Pakistan represents an opportunity for significant growth,” Mneimne explained. “The government’s attention to the construction sector, combined with the demographic realities of the population, means that urban development simply must occur.”

Riaz Haq said...

Centre removes all bottlenecks to launch Sukkur-Hyderabad motorway project

https://www.dawn.com/news/1621736

The 306-km-long motorway is part of PM’s Rs446bn Sindh development package.

A recent meeting of the Public-Private Partnership Authority chaired by Federal Minister for Planning, Development & Special Initiatives Asad Umar took up several matters, including the Sukkur-Hyderabad motorway project which was facing some issues to take off.

With the fresh development, sources said, the project could formally be launched in the current month for further proceedings.

Mr Umer in a tweet said: “Chaired meeting of public private partnership authority today in which we authorised the viability gap fund and transaction structure for the Sukkur Hyderabad motorway project. This motorway will be the biggest project in the Sindh development package announced by the PM.”


Meanwhile, a source privy to the development said that the project envisaged construction of a 306-kilometre-long green-field six-lane access controlled motorway on build-operate-transfer (BOT) basis at a cost of Rs191 billion.

“The federal government intends to supplement through capital and operational VGF [Viability Gap Fund], the financial viability and bankability of the project,” the source said citing financial and technical details of the project.

“The project’s construction period is three years including six months financial close and concession period is 25 years. The project is expected to be financed through debt-to-equity ratio of 70:30 after deducting government of Pakistan’s share of capital VGF in the project. The project is expected to provide 17 per cent equity IRR [internal rate of return] to the investor while generating NHA [National Highway Authority] revenue share amounting to Rs127 billion,” he said.

He said that since the project was proposed to be financed on a BOT basis, all the significant risks related to Sukkur-Hyderabad motorway construction and operations including arranging finances would remain with the private sector except change of law and political risk.

It would be the biggest project under the Sindh development package announced by the PM in April, he said and added that its commercial feasibility study along with transaction structure had been approved with high hopes that it would be floated in the market in May 2021.

Prime Minister Imran Khan had on April 16 unveiled a historic development package worth Rs446bn to develop backward areas of the PPP-led Sindh through power supply, irrigation, sports and communication projects.

The package features restoration of 200,000 acres of agricultural land, upgrading of 14 passports offices, construction of the Nai Gaj dam to irrigate around 28,800 acres, 306-kilometre Sukkur-Hyderabad motorway, gas supply to 160 villages and annual 30,000 new power connections in the neglected districts.

Under the package, Rs52bn would be spent on power and gas supply to the deprived areas and Rohri; and the Hyderabad’s railway stations would be upgraded. The federal government has also decided to complete the Nai Gaj dam project after the Sindh government refused to do its part. Similarly, some 100,000 youth in 14 preferred districts would be imparted skill training; and sports facilities would be developed for the benefit of 130,000 youth, 35,000 of them female.

The package would also ensure introduction of 3G and 4G internet services for 3.7 million people and optic fibre connectivity for 1.2m.

An official privy to the details of the Sukkur-Hyderabad motorway design, meanwhile, said the motorway was proposed to be a high-speed toll road facility for efficient and safe transportation, which would start from Hyderabad — end of the Karachi-Hyderabad motorway M-9 — and terminate at Naro Canal — start of the Sukkur-Multan motorway, M-5.

“The project alignment passes through Jamshoro, Tando Adam, Hala, Shahdadpur, Nawabshah, Moro, Dadu, Naushehro Feroze, Mehrabpur, Rasoolpur, Larkana, Khairpur and Sukkur,” he added.

Riaz Haq said...

NHA constructing motorways, highways with joint ventures

https://nation.com.pk/10-May-2021/nha-constructing-motorways-highways-with-joint-ventures


Presently total length of road network of the country is about 264,000 km. While total length of 51 motorways and national highways under jurisdiction of NHA is 13,572 km, which includes 11,255 kms-38 national highways, 2,055 kms-10 motorways, and 262 kms-3 strategic roads.

Riaz Haq said...

#Pakistan Federal Govt to invite bids for M6 next month. The 306 kilometer 6-Lane #Hyderabad- #Sukkur Motorway to be built on Build Operate Transfer (BOT) basis at a cost of Rs. 191.471 billion.#Karachi #Peshawar Motorway. #Lahore #CPEC #infrastructure https://profit.pakistantoday.com.pk/2021/09/09/govt-to-launch-bidding-for-m6-in-oct/#.YTullTniTcg.twitter

Special Assistant to Prime Minister on Political Communication Dr Shahbaz Gill said on Wednesday that the federal government will open the financial bids for the Hyderabad-Sukkur Motorway (M6) in October.

The construction of the Hyderabad- Sukkur motorway at the revised PC-1 cost of Rs191.471 billion has been approved by The Executive Committee of the National Economic Council (ECNEC).

The 6-lane motorway project would be constructed on Build Operate Transfer (BOT) basis, covering 306 Kilometers.

Finance Minister Shaukat Tarin announced during the ECNEC meeting in Islamabad that the project was expected to be completed in 30 months

Riaz Haq said...

79pc motorways and 68pc highways completed under CPEC


https://pakobserver.net/79pc-motorways-and-68pc-highways-completed-under-cpec/

As many as 79% work on motorways and 68% on highways have been completed on eastern and western routes of China-Pakistan Economic Corridor (CPEC), according to Gwadar Pro.Both the Western and Eastern alignments will connect Khunjerab Pass to Gwadar.

The common alignment for all the three eastern, western and central routes including 790 km road from Khunjerab to Burhan and 193 km road from Hoshab to Gwadar has been completed already.

Burhan will be at the intersection of the Eastern and Western Alignment.

According to the officials in the Ministry of Communication, the distance of the Eastern route starting from Islamabad to Karachi is 1,419 km, out of which 79% work on motorways has been completed whereas 21% is left which is 306 km Sukkur Hyderabad motorway.This is the only patch left in the eastern route of CPEC. Sukkur Hyderabad motorway is expected to be complete in the next 30 months. The company which won the tender has already been allowed to start its construction.

On the other hand, the western route of CPEC starts from Islamabad to D. I Khan, then D. I Khan to Quetta, and from Quetta to Gwadar. Excluding the common alignment, the total length of this route is 1,714 km. Out of which 68% has been completed while 32% is under construction.

The Islamabad to D I khan motorway has been completed recently. The very important link of the western route of CPEC is D.I khan to Zoub and Quetta which is 540 km patch.

Riaz Haq said...

List of Motorways in Pakistan

https://www.incpak.com/info/motorways-in-pakistan/


1. M1 Motorway
The M1 Motorway (also known as the Peshawar to Islamabad Motorway) was built in the year 2007, while many of the interchanges were added to the project in later years. The M1 Motorway is 155KM long and it has six lanes.

2. M2 Motorway
The M2 Motorway was the first one ever built in Pakistan connecting the country’s capital Islamabad to Lahore, which is the Provincial Capital of Punjab. The M2 is a six-lane and 367KM long Motorway.

3. M3 Motorway
The M3 Motorway was completed in 2019. It is a six-lane Motorway spanning the length of 230KM from Lahore to Abdul Hakeem.

4. M4 Motorway
The construction for this Motorway began in 2009 and completed in 2019. The M4 Motorway has four to six lanes throughout the length of 309KM from Pindi Bhattian to Multan.

5. M5 Motorway
The Multan to Sukkur Motorway (formally known as M5 Motorway) was built in 2019. It is 392KM long and has six lanes.

6. M6 Motorway
The Sukkur to Hyderabad Motorway (M6) is currently under construction and not yet operational. The M6 Motorway will have six lanes over a length of 306KM.

7. M7 Motorway
The M7 Motorway is going to follow the route of Dadu to Hub and cover an area of 270KM. The project is still pending and construction is yet to begin.

8. M8 Motorway
The M8 Motorway (formally known as M8 Motorway) is the longest one in Pakistan at 892KM from Ratodero to Gwadar. The Motorway is partially operational and the remaining road is currently under construction.

9. M9 Motorway
The M9 Motorway (Hyderabad to Karachi) is a 136KM long six-lane Motorway which has been operational since 1028. The Motorway is more commonly as Super Highway.

10. M10 Motorway
This M10 Motorway is also known as the Karachi Northern Bypass and covers a distance of 57KM. The two lane Motorway was built in 2007 and there are currently plans to expand it to four-lanes.

11. M11 Motorway
The Lahore to Sialkot or M9 Motorway was built in 2020 and covers a distance of 103KM with four lanes.

12. M12 Motorway
The M12 Motorway (also known as Sialkot to Kharian Motorway) is currently under construction and expected to be completed by 2023. This is going to be a four lane Motorway.

13. M13 Motorway
The M12 Motorway is a planned project from Kharian to Rawalpindi. It is cover a distance of 117KM and have four lanes. The construction is expected to start somewhere around 2023.

14. M14 Motorway
The M14 Motorway (also known as Islamabad to Dera Ismail Khan Motorway) was built in 2021 and covers an area of 285KM. This is a six-lane Motorway which is also called Hakla-Yarik Highway.

15. M15 Motorway
The M15 Motorway is also known as the Hazara Motorway and covers a distance of 180KM from Hasan Abdal to Thakot. The Motorway will have six, four, or two planes depending on different points throughout the road.

16. M16 Motorway
The Swabi to Chakdara Motorway (known as M16 Motorway) was built in 2020 and covers an area of 160KM. It is a four lane Motorway, which is also known as Swat Motorway

Riaz Haq said...

For a long time we have known that improved transport accessibility leads to more opportunities and better lives.

ANDREW DABALENSHOMIK MEHNDIRATTA|JANUARY 24, 2022

https://blogs.worldbank.org/transport/knowledge-action-new-way-maximize-impact-rural-roads

Accessibility describes how easy (or difficult) it is for people to reach services and opportunities. When you look at the data, significant accessibility gaps persist around the world. Globally 51% of individuals living in low-income countries reside within an hour of a city compared to 91% of individuals in high-income countries. This limited access to urban centers hinders rural populations from accessing services and opportunities, including healthcare, education, jobs, and markets. Gender plays an important role as well: as these findings from Pakistan illustrate, women typically must cover greater distances to reach basic services. Even for people living in cities, accessibility may vary depending on the availability of public transport, the impact of traffic congestion.

Lack of access is systematically linked to inferior development outcomes, even more so if motorized transport is not available. The inability to travel to healthcare facilities, for instance, has been associated with increased mortality and morbidity from treatable conditions. Conversely, improved access is often synonymous with improved development outcomes. For example, women with access to roads in Pakistan are twice more likely (14% vs 28%) to go to pre-natal consultations. In rural Morocco, girls’ enrollment in primary schools increased from 17% to 54% when their access to roads improved.

Looking particularly at rural roads investments, the construction of a new road can lead to a chain of positive impacts. When a rural community gets connected to the road network, people who could not reach healthcare, schools, or other essential services before are suddenly able to do so. Workers can access more and better jobs. Farmers can sell their products in more distant markets. But these outcomes can only materialize if rural road projects are carefully planned and prioritized. Also, while investments in road networks are often a critical first step toward enhancing accessibility, they should be integrated into a broader investment package targeting social and technological development overall.

However, transforming this knowledge into action had been hard to operationalize. Lack of data regarding the transport network, opportunities, limited computing power to calculate travel times in large areas and lack of consistent framework had made it hard for us to take this academic research into an operational reality. We needed to understand exactly which transport projects will have the highest impact on accessibility? How would this accessibility transform into household welfare? And how do we create tools to inform planning and investment decisions?

To address these questions, the World Bank’s Transport and Poverty and Equity teams jointly developed a new framework that relies on high-resolution mapping and other sophisticated analytical tools to provide a more granular view of how rural road infrastructure can benefit communities.

We are now able to deploy all that knowledge into operational action, by developing an analytical framework that highlights spatial disparities in access to services and opportunities, calculates the expected gains in accessibility from investments into road infrastructure and thereby informs the placement of transport investments throughout the region.

Riaz Haq said...

ADB study stresses economic corridor development to transform Pakistan's economy

https://www.dawn.com/news/1672882


https://www.adb.org/sites/default/files/publication/768396/economic-corridor-development-pakistan.pdf

Pakistan has the potential of becoming a hub of economic activity for Central, South and West Asian countries if it follows the model of economic corridor development (ECD), the Asian Development Bank said in a study released on Wednesday.

The ADB study, titled "Economic Corridor Development in Pakistan: Concept, Framework, and Case Studies", examined how Pakistan could address economic challenges through ECD.

In the foreword, ADB Central and West Asia Department Director General Eugene Zhukov noted that Pakistan had not yet been able to attain a sustained growth path "to move beyond its historic lacklustre and stop-and-go pattern, characterised by 'booms and busts' every three to four years".

"Through market reforms, Pakistan needs to transform its economy into an export-led growth trajectory. In addition to improving the economy’s competitiveness and productivity with a vibrant private sector, it is critical to attracting domestic and foreign investments to support this transformation," he said.


The official went on to say that Pakistan had already adopted and implemented an ECD-focused strategy as part of its core development and growth framework.

"ECD can be one of the most credible ways to help the government achieve its socio-economic objectives of reaching the upper-middle-income status by 2025," Zhukov said.

However, he cautioned that private sector development and a fair and efficient tax system were also required for transforming the economy to export-led growth.

Defining ECD, the study said that it aimed to promote economic growth by connecting different economic agents along defined geographic areas.

When implemented successfully, ECD supports economies of scale and scope and induces economic transformation and diversification through foreign direct investment.

"By enhancing domestic connectivity and linking lagging regions [including secondary cities] with urban growth centres, ECD can help Pakistan become a hub of economic activity for Central, South, and West Asian countries," the study said.

It stated that the country could "revitalise" its economic growth through facilitating economic centres by bolstering them with an efficient transport network based on "robust infrastructure and supported by a business-enabling policy framework".

However, it pointed out that Pakistan currently lacked the administrative machinery for effectively managing ECD.

"Its complex tax administration and compliance requirements impede growth and expansion of private investment, project management and implementation are weak, and a coherent regulatory framework for land use and urban development is lacking."

The study proposed several recommendations which could enable Pakistan to tackle these challenges:

Empowering a central corridor planning and development agency to oversee the overall development and management of ECD.
Strengthening an overall policy framework for ECD, including streamlining policies for transport, logistics, public-private partnerships, land use, zoning regulations, business regulatory framework and taxation regimes.
Providing institutional support for skills development to align labour force skills with industry needs.
Link current industrial clusters and urban areas with new industrial hubs and urban centres through infrastructure networks.
Seeking ways to channel partial resources from overseas Pakistanis into profitable investment ventures to fund ECD-related projects.
The study also identified four routes that could be used for a pilot ECD programme: M4 Motorway linking Faisalabad and Multan, N70 (national highway) connecting Multan and Killa Saifullah, N50 (national highway) linking Dera Ismail Khan and Kachlak, and the Hazara Motorway (E35 Expressway) from Islamabad to Mansehra.

Riaz Haq said...

ADB study stresses economic corridor development to transform Pakistan's economy

https://www.dawn.com/news/1672882


https://www.adb.org/sites/default/files/publication/768396/economic-corridor-development-pakistan.pdf


Explaining the rationale behind selecting the routes, the study said: "[They] offer real untapped economic potential with opportunities to diversify; good development synergy for linking production networks especially small and medium-sized enterprises with markets and other economic agents; close links to the CPEC (China-Pakistan Economic Corridor) and Carec (Central Asia Regional Economic Cooperation) routes; and favourable prospects for connecting and realising the economic potential of underdeveloped regions in Balochistan and Khyber Pakhtunkhwa."

Maximising CPEC benefits
The study also touched upon CPEC and said that it could pull off a number of economic objectives if it was implemented successfully.

However, it cautioned that CPEC alone could not improve the economy and would need to be supported by structural reforms to unleash its true potential.

The ADB report suggested four policy recommendations to fully benefit from CPEC.

Undertaking structural reforms to facilitate private sector development.
Broadening the tax base to make use of the country's tax revenue potential and improve fairness of tax collection.
Utilising transport infrastructure under CPEC to maximise investment return and turn it into a multilateral initiative.
Expediting development of nine special economic zones planned along CPEC routes.

Riaz Haq said...

China’s belt and road projects will help lift Pakistan from poverty, says Imran Khan
Despite questions around Pakistan’s deals with China, its PM says CPEC and Gwadar port are viewed as ‘a great opportunity’
Khan told Chinese President Xi Jinping that Islamabad would support China at any time as its ‘all-weather friend’

https://www.scmp.com/news/china/diplomacy/article/3166407/chinas-belt-and-road-projects-will-help-lift-pakistan-poverty


“I do not understand why there is this suspicion about CPEC [China-Pakistan Economic Corridor] and the Gwadar port … what China achieved is really [why] we look at China as a role model, because never has a nation lifted so many people out of poverty as did China,” Khan said.

“This is really my main concern: how do I lift people out of poverty, how do we create wealth in our country? We see CPEC and Gwadar as a great opportunity for our geoeconomics, I think this is not exclusive between Pakistan and China. We invite any other country to join and invest in CPEC projects,” Khan said, referring to his policy on strengthening trade and investment with regional countries.
“We want to lift our poverty using the example of China,” he said.

CPEC comprises a network of roads, railways, ports, power plants, oil and gas pipelines and optical fibre cables. A main feature of the project is a road from Xinjiang in China’s far west to Gwadar port in Balochistan. Only around a third of the projects have been completed.

“The US is also a good friend of Pakistan, but it is different from the all-weather friendship with China,” Khan said, adding that in the past the US had switched between being friendly towards his nation and then sanctioning Pakistan over regional issues, including conflicts in Afghanistan.
“Pakistan-China relations have been stable for the past 70 years,” Khan said.



Riaz Haq said...

CPEC project keeps children fed


https://tribune.com.pk/story/2343158/cpec-project-keeps-children-fed

Hundreds of children belonging to lessprivileged families in the scenic Kaghan Valley are being fed on a daily basis at the under-construction Suki Kinari hydropower project along the Kunhar River.

The Suki Kinari dam project, one of the key initiatives of the China Pakistan Economic Corridor (CPEC), is estimated to generate 884 megawatts of electricity, which will benefit 13 million households.

According to Mari Petroleum, around 6,000 locals are already involved in the construction work, and once complete, it will create hundreds of more jobs. It is a unique project for which a 30km long tunnel will be dug through the mountains and from where the water will be diverted to the power turbines with the help of pipes.

Launched in 2017, 83% of the work of Suki Kanari Energy Project has been completed. It is hoped that this project will be added to the national grid next year, increasing Pakistan's hydropower reserves by nine percent.

Riaz Haq said...

Since the 1990s, the federal and provincial governments in Pakistan have sought to encourage private sector participation in development projects and in the provision of public infrastructure and related services in Pakistan. Beginning in the 2000s, several legal and regulatory changes have been made to expand the use of public–private partnerships.

https://www.lexology.com/library/detail.aspx?g=3df8a24e-6658-405c-ad66-d45e8874bf82

As of 2020, the federal government and all four provincial governments have passed PPP-specific legislation, formalising and enabling the regime, including by creating independent statutory bodies to facilitate, support and promote PPPs. At the federal level, the Public Private Partnership Authority (the PPP Authority) was set up in 2017 under the Public Private Partnership Authority Act, No. VIII of 2017 (the 2017 PPP Act). The PPP Authority replaced the Infrastructure Project Development Facility (IPDF), formed by the federal government in 2006 to facilitate PPPs. The 2017 PPP Act was subsequently amended through the Public Private Partnership Authority (Amendment) Act, 2021 (the 2021 Amendment Act), to create a more facilitative PPP regulatory framework and make it more amenable to private investment in development projects.

Traditionally, PPPs in Pakistan have been particularly common in the energy, power generation and transportation sectors. In fiscal year 2019–2020, 17 infrastructure projects involving private investment reached financial closure.2 The power sector made up the largest investment share with a total investment amount of US$5 billion.3 In recent years, though, the government has expressed a commitment to using PPPs in many more sectors including aviation, technology, healthcare, tourism and others. In late 2019, the Prime Minister approved a development plan, expected to run from fiscal years 2020 to 2023, termed the Public Sector Development Programme Plus (PSDP+) initiative, firmly orienting the government towards PPPs across sectors.4

In addition to the federal initiative, each of the four provinces – Sindh, Punjab, Balochistan and Khyber Pakhtunkhwa – has its own specific roster of projects and policies to promote PPPs. In accordance with the Constitution, PPPs in the areas enumerated in the Federal Legislative List fall within the domain of the federal government, while other areas generally fall under the domain of the provinces. This chapter focuses on the federal regime as exemplary of other models, but where relevant, also references the provincial regimes.

The year in review

According to information available on the PPP Authority's official website, at the federal level, 47 PPP projects are in the pipeline across sectors out of the 105 PSDP+ portfolio federal projects.5 Additionally, the PPP Authority lists a number of 'early harvest' projects that it is assisting with, including:

the construction of the Sukkur Hyderabad Motorway (expected cost around US$1.2 billion);
the construction of the Sialkot Kharian Motorway (expected cost around US$225 million);
the construction of a teaching and research hospital;
the construction of an innovations ecosystem (science and technology park);
the conversion of a guesthouse located in Lahore (the provincial capital of Punjab province) into a hotel;
the creation of a mass transit facility in a major city, the Karachi Circular Railway; and
the modernisation of the current Karachi–Pipri Rail Track.6
Previous projects finalised by the IPDF include:

the overlay and modernisation of the Lahore Islamabad Motorway (investment of US$460 million), which has been in operation since 2016;
the construction of the Lahore Sialkot Motorway (investment of US$438 million), which is in operation now;
the conversion of an existing four-lane super highway into a six-lane Karachi Hyderabad highway (investment of US$430 million), which has been in operation since 2017; and
the construction of the Habibabad Flyover (investment of US$8 million), which has been in operation since 2014.7

Riaz Haq said...

Pakistan - Operational Design for the Project Development Fund and for the Viability Gap Fund

https://openknowledge.worldbank.org/handle/10986/12391


This final report is the fifth deliverable for the World Bank funded project 'operational design for the project development fund and for the viability gap fund'. Taking into account feedback and further consideration of issues rose in the previous Reports, it aims to: provide high level recommendations on the overall Public Private Partnership (PPP) framework in Pakistan, recognizing international best practice but also taking into account the specific Pakistan context and the challenges faced their-in; provide the analysis of the project pipeline for PPP projects in Pakistan, on the basis of consultations undertaken in Islamabad in May 2009; and design possible structures for the Project Development Fund (PDF) and for the Viability Gap Fund (VGF), that is informed by the current local enabling environment for PPPs, including the institutional capabilities and the existing pipeline of PPP projects. This final report incorporates feedback from the World Bank and the Government of Pakistan on each of the above-listed issues, which were set out and discussed in details in previous reports.

Riaz Haq said...

Asad Mahmood, the Federal Minister for Communications and Postal Services, announced on Friday afternoon that the Sukkur-Hyderabad Motorway (M-6) of the China-Pakistan Economic Corridor (CPEC) will be completed as soon as possible.

https://www.economy.pk/sukkur-hyderabad-motorway-project-to-get-priority/

During his visit to the National Highway Authority (NHA) headquarters, the minister revealed this in a meeting with Federal Minister for Water Resources Syed Khursheed Shah.

The federal ministers were informed of the ongoing building projects across the nation, particularly in Sindh, by Federal Secretary for Communications Zafar Hasan and NHA Chairman Captain (Retd) Muhammad Khurram Agha. Asad Mahmood, the Minister for Communications and Postal Services, told his cabinet colleague Khursheed Shah and the people of Sindh that the ongoing motorway projects will be completed quickly.

Asad Mahmood stated that the required documents had been completed and that construction on the 306-kilometer motorway will begin soon. The projected Sukkur-Hyderabad Motorway will be 306 kilometers long.

Riaz Haq said...

Here's the latest Census data on modes of #freight #transport in #US. #Trucks ($10.4 trillion) claim humongous market share. #Rail only 250 billion. https://www.census.gov/library/stories/2021/02/what-is-in-that-truck-i-just-passed-on-the-highway.html


https://twitter.com/haqsmusings/status/1530964873567358977?s=20&t=3_V6_irzWiK7RvZWGDWNsw

Riaz Haq said...

Pakistan allocates Rs800 billion for FY23 PSDP
June 11, 2022

https://pkrevenue.com/pakistan-allocates-rs800-billion-for-fy23-psdp/

The country presented the federal budget 2022/2023, which envisages PSDP worth 800 billion rupees for the next fiscal year.

It has been centered on improvement in sectors such as water resources, transport and communication, energy, higher education, health, science and technology, and balanced regional development.

The emphasis of PSDP is also on revival of CPEC and related projects for inter-provincial and regional connectivity with equal importance to Special Economic Zones to promote trade, industrialization and create job opportunities.

The major thrust in the Information and Communication Technology sector including establishment and operations of Special Technology Zones.

Under the PSDP, the government has allocated 44.179 billion rupees including foreign aid of 1.3 billion rupees to the Higher Education Commission for implementation of 151 development projects.

The allocation indicates an increase of one hundred percent over the last year.

An allocation of over 197 billion rupees has been made for 117 power related projects.

These include hydro power generation projects such as Diamer-Bhasha, Mohmand, Nai Gaj and the fifth extension of Tarbela. Initiatives like developing water storages, automatic telemetry system, rainwater harvesting, decreasing water losses, ground water regulation and management would be undertaken in consultation with the stakeholders.

Over nine billion rupees have been earmarked for Ten Billion Trees Tsunami Programme Phase-I to achieve the target of planting 500 million trees.

Similarly, over 563 million rupees and over 1.2 billion rupees have been allocated for installation of weather surveillance radars at Multan and Sukkur respectively.

The Federal PSDP has also proposed an amount of 1.5 billion rupees to complete the emergent nature of small flood schemes all over Pakistan.

An allocation of 227 billion rupees has been made for strengthening efficiency of transport and logistics for domestic commerce and regional connectivity.

The high impact infrastructure projects to be completed under Public Private Partnership mode include Sukkur-Hyderabad Motorway, Sialkot-Kharian Motorway, Kharian-Rawalpindi Motorway, and Karachi Circular Railway. Under the CPEC, D I Khan-Zhob section is under discussion with the Chinese side for financing and it is expected to be launched in the next financial year.

The concessional financing agreement for landmark ML-1 project is to be finalized in the second quarter of the next fiscal year and subsequently arrangements will be made for groundbreaking of the project.

A comprehensive National Action Plan for agriculture modernization has been prepared in terms of capacity building, agricultural product processing technology extension, fishery science and technology, aquaculture and aquatic products processing.

Riaz Haq said...

NHA awards contract for construction of last section of CPEC’s M-8 Motorway--China Economic Net


http://en.ce.cn/Insight/202206/14/t20220614_37755846.shtml

Islamabad, June 14 (Gwadar Pro) - The National Highway Authority (NHA) on Monday awarded an Rs 8 billion contract for the construction of 168 kilometres long-missing link in the M-8 Motorway of the central alignment of the China-Pakistan Economic Corridor (CPEC) initiative.

The 250 kilometres Ratodero-Khuzdar and 193 kilometres Gwadar-Hoshab sections of the M-8 Motorway are operational. Similarly, work on 146 kilometres long Hoshab-Awaran section is also underway at a cost of Rs9.12 billion. The contract for the last missing link between Awaran and Naal (near Khuzdar) has been awarded to a joint venture of Habib Construction Services and Matracon Pakistan for Rs 8.08 billion.

After completion of this section, Islamabad, Peshawar and Lahore will be connected with the Gwadar Port through the shortest route, NHA said. It will also mark the completion of the first-ever access-controlled link between the Gwadar Port and northern parts of the country.

The M-8 Motorway starts from Ratodero in Sindh and culminates at the Gwadar Port, passing from Khuzdar, Awaran, Hoshab and Turbat areas of Balochistan.

The east-west motorway will link Sukkur, Sindh with Gwadar. Pakistan has already completed a network of access-controlled roads from Peshawar and Islamabad up to Sukkur.

Riaz Haq said...

Commissioner For Early Resolution Of Hyderabad-Sukkur Motorway Land Acquisition Issue

https://nation.com.pk/2022/06/23/commissioner-for-early-resolution-of-hyderabad-sukkur-motorway-land-acquisition-issue/


HYDERABAD-Hyderabad Commissioner Nadeem-ur-Rehman Memon has asked the officers of National Highway Authority (NHA) to take concrete steps to resolve land acquisi-tion issues for construction of Hyderabad-Sukkur Motorway without any further delay. He issued the directives while presiding over a review meeting on land acquisition issues for construction of Hyderabad-Sukkur Motorway on Wednesday. He said, the land of Forest Department was also an issue for the construction of Hyderabad-Sukkur Motorway for which a legal way should be adopted to avoid any conflict. He also reviewed the ongoing construction work of roads lying in the limits of Matiari and Jamshoro districts and directed the concerned authorities to complete the work as soon as possible. The Director Land Acquisition informed that all issues would be resolved up to July 15, 2022. Hyderabad Deputy Commissioner Fuad Ghaffar Soomro, Deputy Commissioner Matiari Adnan Rashid and other concerned officers attended the meeting.

Riaz Haq said...

NHA gears up to link CPEC M-14 with Pakistan-Afghanistan border

https://www.pakistantoday.com.pk/2022/07/05/nha-gears-up-to-link-cpec-m-14-with-pak-afghan-border/


ISLAMABAD: The federal government has decided to connect Ghulam Khan in North Waziristan with Motorway 14 (M-14), a project of the western alignment route of China-Pakistan Economic Corridor (CPEC) via a 184km-long Motorway.

According to Gwadar Pro on Tuesday, the National Highway Authority (NHA) on Monday issued a request for proposal (RFP) of consultancy services for the Feasibility Study and Detailed Design for the Construction of the Motorway from Ghulam Khan to Esa Khel Interchange (184km approx).

The project will be financed by the Federal Government through PSDP 2022-23 through separate head/allocation.

In this regard, a pre-proposal conference on the project will be held on July 19, 2022, at NHA headquarters in Islamabad while procurement will be carried out by adopting the “Single Stage Two Envelops” procedure.

The proposals complete in all respects in accordance with the instructions provided in the RFP document in sealed envelopes, which should reach on or before August 10, 2022.

Esa Khel Interchange is located over M-14 in Mianwali district of Punjab, which is in proximity to the Lakki Marwat district of Khyber Pakhtunkhwa (KP). Between Mianwali and Ghulam Khan falls Bannu district of KP. After Torkham and Chaman, Ghulam Khan is the third most important crossing between Pakistan and Afghanistan.

Afghanistan has already started benefiting from Gwadar Port and the country received the first consignment of bulk cargo from the United Arab Emirates in July 2020. Ghulam Khan crossing, at the Pak-Afghan border point, is the shortest route connecting CPEC’s western route with Afghanistan, Central Asian States and beyond.

Riaz Haq said...

Mastercard partners with Pakistan’s One Network to Digitize Road Toll Payments | Middle East/Africa Hub

https://newsroom.mastercard.com/mea/press-releases/mastercard-partners-with-pakistans-one-network-to-digitize-road-toll-payments/

Islamabad, Pakistan; 08 November 2021 – Mastercard has signed a strategic partnership with the Pakistani intelligent transport systems provider, One Network, to digitize the country’s road toll payments network. The announcement was signed at the Pakistan Pavilion at Expo 2020 Dubai, where Mastercard is the Official Payment Technology Partner, in the presence of Frontier Works Organization, Pakistan’s biggest toll collection entity.

The partnership will see Mastercard integrate its digital payment gateway infrastructure into One Network’s newly launched Apple and Android smartphone app, allowing motorway commuters to top-up their M-Tag cards in advance from anywhere using their mobile devices. The newly developed app will also enable motorists to review their travel history and check their balance in real-time.

Every year, over three hundred million vehicles travel and pay Toll Tax on Pakistan’s motorways. M-Tag uses RFID technology (radio-frequency identification) to automatically and digitally deduct credit from commuters’ prepaid M-Tag accounts as they pass through RFID-enabled toll lanes. With the integration of Mastercard’s digital mobility payment solutions, commuters can add credit whenever and wherever is most convenient to them through the new application without interrupting their journeys.