Summary of Pakistan's existing Transport Policy

Key Issues Addressed

Undertaking of projects regardless of the benefit/cost ratio and overlooking the socio-economic decisional rules in the scheduling of schemes and program priorities. Inflated unit costs and substandard maintenance of facilities. Widespread commission charges and kickbacks in the executive departments. Overstaffed organizations and undue extraction of fringe benefits and payments through additional pressures exercised by trade unions and officers associations. Isolation of real wage rises from productivity improvements. Non-professional and unaccountable management causing operational inefficiencies and continuing sub-normal performance.

Recommended Policies

Investment, Financing, and Pricing: Identify and design projects on the basis of need, market analysis, traffic projections, intensity of the problems encountered, and requirement of organizational mission.  Assess alternative proposals in terms of input, output and socio-economic spin off and linkages. Rank projects to be executed/included in expenditure program in order of their economic and financial viability. Synchronize capital outlay with availability of fund for scheduling the portfolio of selected projects. Monitor progress and ensure construction as per specifications, schedule of completion and cost estimates and budgetary allocations. Evaluate completed projects and get feedback on different dimensions of the project. Encourage financing by private sector transport operators. Provide for access to borrowing from the commercial banks and business finance corporations for the purchase of vehicles and the expansion and modernization of workshops. Recover total cost through pricing policy (whether through direct or indirect means). Provide direct subsidy to the target group. Encourage freedom of transport enterprises to fix the price of its own product/services. Operation, Regulation, and Management: Preserve and improve existing infrastructure. Improve efficiency of transport system - better service; increase marketing effort; modernization of operating procedures; and increase capacity. Encourage modernization and competition in transport facilities. Encourage Private sector to introduce: heavy duty high powered trucks with specialized trailers; high capacity railway wagons; and, specialized port facilities and equipment to handle containers and bulk commodities. Enforce regulations. Create overall Ministry of Transport to assess inter-modal priorities. Incorporate sufficient skilled personnel in transport ministries. Remove deficiency in management and expertise in transport operations. Improve financial health of all public service entities. Simplify customs' clearance procedures. Draft of Proposed Transport Policy. Last year Chartered Institute of Transport Pakistan was given a mandate by Ministry of Communications to draft an integrated Transport Policy for Pakistan. The draft policy was forwarded to Ministry of Communication in September, 1998. Here is a copy for that draft. You can downloaffile by right clicking here and saving as "Save Target As"  (file size 100KB)