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Transport and Communications Chapter 14 TRANSPORT AND COMMUNICATIONS Infrastructure is both a cause and a consequence of of the road infrastructure has been a prevalent economic growth. The role of infrastructure in problem in the country’s transportation sector. integrating countries into the global economy by Recent initiatives and developments in sectors such providing transport and telecommunication as shipping, railways, and aviation are a welcomed services is well known. Infrastructure can also step towards mending this bias. raise the quality of human capital, which is a key factor in achieving high and sustainable levels of Port traffic in Pakistan has been growing at 8 growth. Improvements in the quality and quantity percent annually in recent years. Two major ports, of infrastructure have a disproportionately positive Karachi Port and Port Qasim, handle 95 percent of impact on the poor, and thus play a vital role in all international trade. Gwadar Port, which was reducing income inequality. inaugurated in March 2007 and is being operated by Singapore Port Authority, is aiming to develop A well performing Transport and communication into a central energy port in the region. In addition, structure is vital for a country’s development. 14 dry ports cater to high value external trade. Investment in a country’s infrastructure directly affects economic growth as producers find the best Pakistan Railways (PR) has a broad gauge system markets for their goods, reducing transportation (with a small network of meter gauge in the South time and cost, and generating employment East). The network consists of the main North – opportunities. South corridor, connecting the Karachi ports to the primary production and population centers in Pakistan, with 161 million people, has a reasonably Pakistan. The track is in good condition with an developed transport infrastructure. The country axle-load of 23 tons and maximum permitted generates a total domestic transport load of around speeds of 100/110 Kilometers per hour. 239 billion passenger kilometers and 153 billion tonne kilometers annually. The growth in demand There are 36 operational airports. Karachi is for transportation services is considerably higher Pakistan's main airport but significant levels of than the growth in GDP. Road transport is the both domestic and international cargo are also backbone of Pakistan's transport system. The 9,574 handled at Islamabad and Lahore. Pakistan km long National Highway and Motorway network International Airlines (PIA), the major public - which is 3.65 percent of the total road network - sector airline, though facing the competition from a carries 80 percent of Pakistan's total traffic. Over few private airlines, carries approximately 70 the past ten years, road traffic – both passenger and percent of domestic passengers and almost all freight - has grown significantly faster than the domestic freight traffic. national economy. Currently, it is accounting for 91 percent of national passenger traffic and 96 The transport and communications sector accounts percent of freight. However, neglect of other for about 10.0 percent of the country’s GDP, and modes of transportation in favor of improvement 22.0 percent of Gross Fixed Capital Formation in 223 Pakistan Economic Survey 2007-08 FY07/08. It provides over 2.3 million jobs in the remain. A comprehensive and holistic National country (6% of all employment) and receives 12 to Transportation Policy that covers all modes of 15 percent of funds from the annual Federal Public transportation for both Urban and Rural transport Sector Development Program (PSDP). Apart from is yet to be implemented. Urban traffic congestion, being a significantly large source of budgetary lack of quality public transport, environmental expenditure, the transportation sector imposes huge pollution and other negative spill-overs from the demand on Pakistan’s energy supply, absorbing transportation sector, along with safety (especially approximately 35% of total energy annually. road safety) are all matters that need to be addressed if Pakistan’s transportation is expected Infrastructure development has been a priority area to perform efficiently and provide the benefits of a for Pakistan as evident from a number of projects modern, well functioning and fully equipped completed or in progress. In the long term, the transportation network. transport system is likely to experience tremendous improvement with the implementation of the i. Road Transport National Trade Corridor (NTC) program. Pakistan’s transport system is primarily dependent on road transport, which makes up 90 percent of The telecommunication sector of Pakistan national passenger traffic and around 96 percent of witnessed a robust growth over the last few years freight movement. Over the past several years, with its share in total GDP increasing every year. road traffic – both passenger and freight – has Teledensity of the country has crossed 57% which grown much faster than the country’s overall has placed Pakistan’s telecom sector among those economic growth. The National Highway and of the rising East Asian economies. Motorway network, which stretches an impressive I. TRANSPORT 10,849 km, contributes 4.2 percent of the total road network and carries 90 percent of Pakistan’s total Pakistan’s transportation network, albeit not as traffic. modern and efficient as that of developed countries, is considerably more efficient than it Road density (Total length of road/ Total area), is a was a decade ago. Users of the network have a common indicator for the development of a wider range of modes to choose from. Pakistan country’s road system and concurrently used as an Railway is still the only enterprise providing rail index for prosperity, economic activity and service in the country, but the Airline industry has development. It is unfortunately low in Pakistan, greatly benefited from the competition provided by especially when compared to other developed and private sector players such as Air Blue, Shaheen developing countries. This fact is revealed in Fig- Air and Aero Asia. The road network has been 14.1. Pakistan, with a population of 161 million expanding constantly. New motorways and people, has a reasonably developed transport expressways made throughout the country have system, but still intends to double its current road significantly reduced the time it takes for goods density of 0.32-km/sq. km to 0.64-km/sq. km and people to reach their destinations. The gradually over the next 10 years. successes of service providers such as Daewoo have provided consumers with benefits of choice a) Road Network and affordability. New initiatives like the Pakistan is gifted with a naturally geo-strategic establishment of Gwadar Port and the construction location. It is at the peripheral of South Asia on and upgradation of new airports around the country one side, and Central Asia on the other. In the and a further expansion of the highway network south, the Arabian Sea forms a gateway to the vast hold promises of a brighter future. Eurasian hinterland. It is here that cultures of Central, West and South Asia crisscross. This ideal While visible progress has been made in the location makes Pakistan one of the most attractive transportation sector, key issues and challenges 224 Transport and Communications and shortest routes for transit to the Central Asian economies in the recent past has also necessitated Republics (CARs). Indian trade to that region, in the establishment/effectiveness of operations an economical/convenient manner, is also regarding the transcontinental transport links, dependent on the availability of passage through warranting the development of land transport Pakistan. The rapid development of Asian corridors to facilitate trade flows. Fig-14.1 Road Density Comparisons 3.5 3 2.5 2 1.5 1 0.5 0 RoadLength / Sq. Kmof Area Japan France Hungary UK Italy India USA Spain Malaysia Pakistan Brazil Indonesia China Argentina Source: National Highway Authority This fact has been recognized by the United percent since 1996-97. A sizable and continuous Nations Economic & Social Commission for Asia improvement of the high type road network can be & Pacific (UNESCAP) by designating different observed from 2001 to 2007, where the network routes passing through various Asian countries as grew at an average rate of above 3 percent. The the Asian Highway Network (AHN). A number of continuous improvement and rehabilitation of the inter-provincial national highways of Pakistan are existing roads reflects the government’s enhanced a component of AHN. focus on infrastructure. As a result of an emphasis on high type roads, many low typed roads were Pakistan’s road network is vital for the movement converted to high typed roads during this period. of people and goods and plays an important role in There are many ways by which availability of integrating the country, facilitating economic improved and wide spread modern road networks growth and reducing poverty. The total road can facilitate economic activity. For example, they network is about 260,000 km of which around 60% could help alleviate poverty by providing access to is paved. Road density is 0.32 km/km2 which is far flung rural areas, create more jobs by low and compares unfavorably with other South supporting economic activity along the network Asian countries (Bangladesh-1.7 km/km2, Sri and provide numerous small-scale investment Lanka-1.5 km/km2 and India-1.0 km/km2). The opportunities. In addition, introduction of Khushal Government intends to generate/ mobilize all Pakistan Programme, has helped to rehabilitate and possible resources to double road density to 0.64 modernise rural road network along with km/km2. Total roads, which were 229,595 KM in implementation of wide ranging development 1996-97, increased to 264,853 KM by 2007-08 ― activities through various district governments an increase of 15.4 percent. During the out-going under the devolution programme. The annual fiscal year, the length of the high typed road growth of roads in Pakistan between 1996-97 and network increased by 3.2 percent but the length of 2007-08 is given in Table-14.1 and Fig-14.2 the low type road network declined by 2.8 percent.
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