2. Presentation On
Transportation &
Telecommunication Sector of
Pakistan

3. Introduction
Transport & communication Sector plays Important
role
Common modes of transport are
Rail, Road, Marine(Sea) and Air transport
Survey Report of 2012-13 shows that it accounts for 10%
of GDP & provides 2.3 million jobs i.e 6% of total
employment

4. Road Transport

5. Road Transport
The most Important sector of Infrastructure
Rapid Eco. Development & well being depends on
Road networks.
Road network (96% inland freight & 92% passenger
traffic).
Easy access to remote areas (63% of Population).
Total Road network of Pakistan 263,415 km.
(9,324 km National Highways & 2,280 km Motorways)

7. National Highway Authority
NHA is playing an important role
Current network of NHA 12131 k.m.
(33 national highways, motorways, strategic roads)
NHA existing portfolio 79 projects (Rs.557 billion)
Govt of Pakistan (Rs. 50.7 billion) NHA’s
development projects in PSDP 2012-13.

8. National Highway Authority
On Going Projects:
1. Faisalabad –Khanewal – Multan Motorway (M-4)
2. Sehwan-Ratodero Additional Carriageway (N-55)
3. Sukkur-Shikarpur-Jacobabad (N-65)
4. Qila Saifullah – Zhob (N-50)
5. Peshawar Northern Bypass (E-2)
6. Khushalgarh Bridge (N-80)
7. Qazi – Amri Bridge across River Indus

9. National Highway Authority
Completed Projects:
1. 6 Interchanges on Inner Ring Road Multan
2. 4-lane Underpass at Wah Gate, Texila
3. Multan – Muzaffargarh (N-70, ADB Assisted)
4. Larkana-Naudero-Lakhi Road
5. Sakrand-Benazirabad Dual Carriageway
6. Hyderabad – Badin Road to Mir Wah Sanjar Chang Road
7. Ghazi and Chuch Interchanges on Motorway (M-1)
8. Pleri-Gabd Section of Makran Coastal Highway
9. Hub-Uthal Section of National Highway (N-25)
10.Metro bus

10. Metro bus at Lahore
Govt. of Punjab started Mass transit system in Feb.
2013
Punjab metro bus Authority authorized its
construction with technical help of Turkish firm.
Project Cost ( 30 Billion)
Metro Bus System facilitates passengers from
Gajjumata to Shahdara on 27 stations.
64 articulated buses operate in 27 k.m
1500 jobs created & 120,000 passengers are facilitated
everyday.

11. Road Transport
Problems
Inconsistent govt. policies
Improper maintenance
Lack of roads in rural area
Violation of rules
High corruption in road funds

12. Road Transport
Solutions
Make law for continuance of projects
Proper check and balance
Roads for rural and agriculture area
Charge High fines

13. Rail Transport
 Pakistan Railway’s network comprises of
(7791, 515, 1901, 17543)
 Worst crisis.
(Passenger Traffic 230(92), Freight 96(1)
 Since 2011-12 (June) No. of locomotive available (10,8
and 92)/month.
 As a result, Revenues (25%), Expenses (33%).
 2011-12, Emp. Related Cost & Pensions (198%) of Rev’s.
 As evident from table, Pak Railway’s earnings in last
5 years

14. Rail Transport in Pakistan

15. Railways At Present
Main factors for Increase in Operational
Expenditures:
Over aged Infra, Rolling stock, fuel prices
$ Exchange rate escalations, subsidized rail fares
Sharp in Salaries & Pensions 2010-11 & in 2011-12
(at cost of Oper. & Maint. requirements)
Commitment of Finance Division
GOP has allocated Rs. 23 Billion in PSDP (2012-13)

16. Railways At Present
New Initiatives under Public Private Partnership (PPP)
 Under PPP, Pak. Railway has started trains b/w LHR & KCH
(Feb 3rd 2012)

17. Public Private Partnership
 Provision of high level passenger services at Comp.
Prices ( Rev for Pak. railway)
 Responsibility of Pak. Railway & Private Partners
 To generate max revenues & to fin. Losses (18 more
trains by Ministry of Railways)

18. Achievements during the fiscal year 2012-13
Track:
 During 2012-13, rehabilitation of 60 km
 Doubling of tracks (68 km)
Rolling Stock:
 Contract agreement with Chinese Supplier Firm 202 coaches
 152 received balance 50
 Moreover manufacturing of coaching is in progress at
Railway Carriage Factory Islamabad (2012-13)

19. Achievements during the fiscal year 2012-13
Rehabilitation & Repairs of Locomotives:
At present, more than 300 locomotives are out of service
Following initiatives are under way for their rehabilitation:
 Funding through Banking Consortium through PRACS ( 6.1 Billion)
 Agreement of Rehab. of held up locomotives (27) through PSDP &
Electromotive Division USA ( 2 locomotives /month 2014)
 Special Repair of Locomotives through PSDP (Rs.5005 million for 150
locomotives)
(20 Loco. By 2012-13 & rest in 2 years)

20. Problems
 Union activities
 Overstaffing
 Corruption
 Shortage of funds

21. Suggestions
 Privatize
 Complete projects
 Eradicate corruption
 Proper use of funds

22. Water Transport
Geographic Location of Pakistan
Ignorance of Inland Water Transportation
Most Economical form of transportation
Introduction of Canal System:

24. At Present
Major Ports:
 Karachi Port
 Port Qasim
 Gawadar Port
Other Ports:
 Ormara
 Jiwani
 Pasni

25. Port Of Karachi:
At the “Top Of The Food Chain”
Location
% share in total national cargo handlings
Geographic Position
Administration ( K.P.T)

27. Port of Karachi
Facilities provided at Port:
2 Wharves
No. of multipurpose berths
Container Terminals & Oil piers
Operation of KPT
Deadweight tones (DWT)

28. Port of Karachi
 Cargo handled in Current Fiscal Year
 Cargo handled in last 5 Years

29. Port Muhammad Bin Qasim (Port Qasim)
Port Qasim Authority
% share in total national cargo handlings
Cargo handled in Financial Year 2012-13 (18.569)
Volume of Import Cargo 2012-13 & 2011-12
(13.458 , 13.301 )
Volume of Export Cargo 2012-13 & 2011-12
(5.111 , 4.454 )

30. Port Qasim
Cargo handled by PQA:
 Containerized Cargo (7.677 )
 Liquid Cargo (8.343)
 Miscellaneous Types (2.550 )
 TEU (0.538)

32. Gawadar Port
Location
Construction of Gwadar Port
Phase 1
Phase 2
Agreement with Port of Singapore
PSA highest bidder

33. Gawadar Port
 Cancellation of PSA’s Contract
 Agreement with China
 Inauguration & Commencement of Operations
 Import Decision of GOP
 Cargo handled till now

35. Pakistan National Shipping Corporation
Establishment
At Present
Total DWT capacity of Fleet

36. PNSC
Revenue till 31st Mar-2013
An in Rev than Previous year
Expenses incurred
Net Profit till 31st Mar 2013
Sale of Vessel

37. PNSC
Commercial & Financial Performance during July-Mar
2012-13 is given in following table ( Un-Audited)

38. PNSC
Transport for Oil Sector
Future Plan of PNSC
Present Plan
Contract with PSO
Addition to current fleet
Acquisition of Vessels

39. Potential of Inland Water Transportation:
Length of Channels
Surveys & Studies on Inland Water Transportation
Non-usage of inland water transportation
Current Inland water transportation potential
Survey of Indus River
Preparation of track charts

41. Potential of Inland Water Transportation
 Cost of 24-ft road /K.m
 Cost of Entire Indus Project
 Maintenance Cost of Roads
 Maintenance Cost of Waterways
 Only need is Political will

42. Problems
Nationalization Policy
18th Constitutional Amendments
Lack of Loan facilities
Decrease in Exports
Navigational Locks on Indus River
Underdeveloped Infrastructure
Dominance of Foreign Freight Co’s

43. Solutions
Privatization
Uniform Maritime Policy
Increase in Exports
Shipping sector
Inland Water Transportation
Cruise Ships Services
Foreign Exchange Savings

44. Air Transport

45. Air Transport
Major Airports of Pakistan:
 Islamabad International Airport
 Allama Iqbal International Airport
 Jinnah International Airport
 Peshawar & Sialkot International Airport
Major Airlines in Pakistan:
 Pakistan International Airlines
 Shaheen Air
 Air Blue

47. Air Transport
Pakistan International Airlines (PIA):
 5 year Strategic Business Plan
 Introduction of New Aircrafts
 Result
 Focus of Present Management
 Award from Saudi Civil Aviation Authority
(98000,96%)
 International Ranking

48. Air Transport
Initiatives taken by PIA:
Marketing Plan
Fori Ticket Service
Facilities to non-IATA travel agents
Success

50. Pakistan International Airlines
Revenues earned in 2011-12
(112.1, 117.4, 4.7%)
Availability of Seats in 2011-12
Decline in Expenses (2011-12)
(125.7 , 132.9 )
Routes covered (448,120 , 460,719 )

52. Pakistan International Airlines
Operational Performance of PIA:

53. PIA Cargo Service
Commencement of Operations
Freight op network
Boost to Exports
Cargo Services

54. Problems
 Financial Position
 Corruption
 Flight Delays & Cancellations
 Maintenance & Repair
 International Bans
 Nepotism & Employees Union
 Civil Aviation Authority

55. Suggestions/Solutions
Privatization
Bail out Packages
Acquisition of New Aircrafts
Effective Management
Special Incentives

56. Cellular mobile sector
 Better growth during the last two years
 Since 2009, single digit growth due to
Slow economic growth and availability of only 2g services
 Rural market provide opportunities

57. Cellular subscription
 121 million mobile subscribers at the end of March 2013
 118.32 million subscribers last
 Out of 121 million, 119.2 million are pre-paid
 And 1.8 million post- paid

58. Cellular Market Share
 Mobilink (largest player) is losing its share
 More than 50% share in 2004 has declined to 29.8% at
the end of feb 2013
 CMPak has been able to achieve 15.4% of market share
 Warid continuously losing its market share since 2009
 Has lowest market share 10.4%
 Telenor has 25.2% while ufone has 19.3% market share

59. Network
 Mobile network covering over 92 percent of the land
area of Pakistan
 companies have expanded their networks
 cellular industry has shown a growth of 8.4% in cell
sites during 2012

60. Basic services
 Local loop subscribers were 6.16 million at the end of
March 2013
 Local Loop industry has grown by 1.5% during the last
year
 FLL subscribers were 3.03 million
 WLL subscribers were 3.13 million
 Growth in subscribers is a result of strong performance
of PTCL, Wateen and World Call mainly in the WLL
sector

61. Broadband
 Broadband in Pakistan is an example of
technologically advanced and consumer friendly
market
 GOP extended full support to telecom sector especially
broadband
 Spending Rs. 22 billion on rural telecom development
 Government has plan to allocate Rs. 17 billion in next
year budget for broadband services

62. Subscriber Mix
 Broadband subscribers crossed the two million mark
in just a few years
 This year the broadband industry added the highest
number of subscribers
 average annual growth rate remained above 100%
 Pakistan's broadband market has tremendous
potential for growth and investment
 Currently, Broadband subscribers stood at 2.54 million
at the end of March, 2013.

63. Telecom investment
 Telecom sector of Pakistan has attracted substantial
investments
 More than US$ 12 billion have been invested in the
telecom infrastructure and new technologies
 Currently, over 92 percent of our population has access
to telecom services
 which has been possible due to expansion of telecom
infrastructure all over the country

64. Telecom investment
 net inflows of FDI in telecom remained negative
during the year on account of capital outflow by some
companies
 Overall slow economic growth has also contributed in
the low investment in telecom
 it is expected that the cellular mobile sector will attract
significant investment in the next two years, With the
expected launch of 3G/4G services in the country

65. Telecom contribution to national
Income
 Telecom sector has been contributing to the national
income in terms of taxes, regulatory fee, activation tax
and other charges
 During 2012, the sector has contributed a record
amount Rs. 133 billion
 Major share of this growth has been through Federal
Excise Duty (FED) and other taxes

66. Telecom contribution to national
Income
 Telecom sector has been overburdened with heavy
taxes
 contributing almost 30 percent of their revenues under
FED and withholding tax.
 General Sales Tax (GST) on telecom services is
deducted under FED @19.5%

67. PEMRA
 a statutory body established in March 2002
 to facilitate and regulate growth of Electronic Media in
the private sector
 is primarily mandated for licensing and regulating the
establishment and operation of all broadcast media in
Pakistan

68. PEMRA
 During the last ten years the country has witnessed a
massive spurt in the number of TV channels and FM
radio stations
 Raise the standards of public awareness and literacy

69. Economic contribution
 the Electronic media has shown some resilience
 There has been a cumulative investment of
approximately U.S. $ 3.0 billion in the electronic media
industry in Pakistan
 has generated direct employment for more-than
200,000 people of diversified skills and qualifications
 U.S. $ 4.0 billion cumulative investment is expected
 increasing job opportunities for skilled media
personnel and journalists

70. Pakistan Television Corporation
 extending its signal to remote and economically
backward areas
 PTV is operating 6 multiple terrestrial channels
 PTV home, PTV News, PTV Bolan, PTV National, PTV
Global and PTV Sports
 a TV Channel has been established in Azad Jammu
and Kashmir with one TV Centre
 with four Rebroadcast Centers at Kotli, Rawala Kot,
Bagh and Bhimber.

71. Pakistan Television Corporation
 an English television channel was required
 PTV has launched English News Channel in January
2013
 the only English News Channel in Pakistan telecasting
the information about Pakistan domestically as well as
internationally

72. Pakistan broadcasting corporation
 Pakistan Broadcasting Corporation (PBC) is the largest
state-owned media organization of the country
 operates with 64 AM/FM Radio Stations/Channels,
spreading all over the country
 with its daily broadcasts of about 940 hours
programmers’ and 124 news bulletins of 746 minutes
in 29 languages

73. PBC MAJOR SERVICES
 News bulletins are placed on air daily
 Saraiki News Bulletin has launched on 8th February
2012
 Four local bulletins were also launched from
Abbottabad.
 PBC monitors news talk shows and comments of 14
radio and 10 satellite TV channels
 SABS is broadcasting programmes in five Languages
Mitali (Bangla), Hindi, Nepali, Sinhali and Tamil

74. PBC EXTERNAL SERVICES
 Broadcasts programmed for 8 hours daily
 in 11 foreign languages covering countries;
Afghanistan, Iran, China, India, Bangladesh, Nepal
and Sir Lanka

75. MODERNIZATION PROJECTS
 for establishment of an earth satellite station at
National Broadcasting House Islamabad
 first-ever Digital Satellite News Gathering (DSNG)
 Website of PBC has been upgraded and incorporated
many new features

76. MODERNIZATION PROJECTS
 The website is connected with the social media
websites like Facebook, You Tube and Twitter
 2.5 KW FM transmitter installed at PBC Murree has
been and upgraded with 5 KW FM transmitters
 establishment of two FM-98 stations at Islamabad and
Karachi.

77. Problems & Suggestions
 Termination of mobile services
 Taxes
 No Documentation
 Misuse of powers