Chapter 14

TRANSPORT AND COMMUNICATIONS

Infrastructure is both a cause and a consequence of economic growth. The role of infrastructure in integrating countries into the global economy by providing transport and telecommunication services is well known. Infrastructure can also raise the quality of human capital, which is a key factor in achieving high and sustainable levels of growth. Improvements in the quality and quantity of infrastructure have a disproportionately positive impact on the poor, and thus play a vital role in reducing income inequality. A well performing Transport and communication structure is vital for a countrys development. Investment in a countrys infrastructure directly affects economic growth as producers find the best markets for their goods, reducing transportation time and cost, and generating employment opportunities. Pakistan, with 161 million people, has a reasonably developed transport infrastructure. The country generates a total domestic transport load of around 239 billion passenger kilometers and 153 billion tonne kilometers annually. The growth in demand for transportation services is considerably higher than the growth in GDP. Road transport is the backbone of Pakistan's transport system. The 9,574 km long National Highway and Motorway network - which is 3.65 percent of the total road network carries 80 percent of Pakistan's total traffic. Over the past ten years, road traffic both passenger and freight - has grown significantly faster than the national economy. Currently, it is accounting for 91 percent of national passenger traffic and 96 percent of freight. However, neglect of other modes of transportation in favor of improvement of the road infrastructure has been a prevalent problem in the countrys transportation sector. Recent initiatives and developments in sectors such as shipping, railways, and aviation are a welcomed step towards mending this bias. Port traffic in Pakistan has been growing at 8 percent annually in recent years. Two major ports, Karachi Port and Port Qasim, handle 95 percent of all international trade. Gwadar Port, which was inaugurated in March 2007 and is being operated by Singapore Port Authority, is aiming to develop into a central energy port in the region. In addition, 14 dry ports cater to high value external trade. Pakistan Railways (PR) has a broad gauge system (with a small network of meter gauge in the South East). The network consists of the main North South corridor, connecting the Karachi ports to the primary production and population centers in Pakistan. The track is in good condition with an axle-load of 23 tons and maximum permitted speeds of 100/110 Kilometers per hour. There are 36 operational airports. Karachi is Pakistan's main airport but significant levels of both domestic and international cargo are also handled at Islamabad and Lahore. Pakistan International Airlines (PIA), the major public sector airline, though facing the competition from a few private airlines, carries approximately 70 percent of domestic passengers and almost all domestic freight traffic. The transport and communications sector accounts for about 10.0 percent of the countrys GDP, and 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 country (6% of all employment) and receives 12 to 15 percent of funds from the annual Federal Public Sector Development Program (PSDP). Apart from being a significantly large source of budgetary expenditure, the transportation sector imposes huge demand on Pakistans energy supply, absorbing approximately 35% of total energy annually. Infrastructure development has been a priority area for Pakistan as evident from a number of projects completed or in progress. In the long term, the transport system is likely to experience tremendous improvement with the implementation of the National Trade Corridor (NTC) program. The telecommunication sector of Pakistan witnessed a robust growth over the last few years with its share in total GDP increasing every year. Teledensity of the country has crossed 57% which has placed Pakistans telecom sector among those of the rising East Asian economies. I. TRANSPORT Pakistans transportation network, albeit not as modern and efficient as that of developed countries, is considerably more efficient than it was a decade ago. Users of the network have a wider range of modes to choose from. Pakistan Railway is still the only enterprise providing rail service in the country, but the Airline industry has greatly benefited from the competition provided by private sector players such as Air Blue, Shaheen Air and Aero Asia. The road network has been expanding constantly. New motorways and expressways made throughout the country have significantly reduced the time it takes for goods and people to reach their destinations. The successes of service providers such as Daewoo have provided consumers with benefits of choice and affordability. New initiatives like the establishment of Gwadar Port and the construction and upgradation of new airports around the country and a further expansion of the highway network hold promises of a brighter future. While visible progress has been made in the transportation sector, key issues and challenges 224 remain. A comprehensive and holistic National Transportation Policy that covers all modes of transportation for both Urban and Rural transport is yet to be implemented. Urban traffic congestion, lack of quality public transport, environmental pollution and other negative spill-overs from the transportation sector, along with safety (especially road safety) are all matters that need to be addressed if Pakistans transportation is expected to perform efficiently and provide the benefits of a modern, well functioning and fully equipped transportation network. i. Road Transport Pakistans transport system is primarily dependent on road transport, which makes up 90 percent of national passenger traffic and around 96 percent of freight movement. Over the past several years, road traffic both passenger and freight has grown much faster than the countrys overall economic growth. The National Highway and Motorway network, which stretches an impressive 10,849 km, contributes 4.2 percent of the total road network and carries 90 percent of Pakistans total traffic. Road density (Total length of road/ Total area), is a common indicator for the development of a countrys road system and concurrently used as an index for prosperity, economic activity and development. It is unfortunately low in Pakistan, especially when compared to other developed and developing countries. This fact is revealed in Fig14.1. Pakistan, with a population of 161 million people, has a reasonably developed transport system, but still intends to double its current road density of 0.32-km/sq. km to 0.64-km/sq. km gradually over the next 10 years. a) Road Network Pakistan is gifted with a naturally geo-strategic location. It is at the peripheral of South Asia on one side, and Central Asia on the other. In the south, the Arabian Sea forms a gateway to the vast Eurasian hinterland. It is here that cultures of Central, West and South Asia crisscross. This ideal location makes Pakistan one of the most attractive

Transport and Communications and shortest routes for transit to the Central Asian Republics (CARs). Indian trade to that region, in an economical/convenient manner, is also dependent on the availability of passage through Pakistan. The rapid development of Asian economies in the recent past has also necessitated the establishment/effectiveness of operations regarding the transcontinental transport links, warranting the development of land transport corridors to facilitate trade flows.

Fig-14.1 Road Density Comparisons

Road Length / Sq. Km of Area 3.5 3 2.5 2 1.5 1 0.5 0 Japan France Hungary UK Italy India USA Spain Malaysia Pakistan Brazil Indonesia China Argentina

Source: National Highw ay Authority

This fact has been recognized by the United Nations Economic & Social Commission for Asia & Pacific (UNESCAP) by designating different routes passing through various Asian countries as the Asian Highway Network (AHN). A number of inter-provincial national highways of Pakistan are a component of AHN. Pakistans road network is vital for the movement of people and goods and plays an important role in integrating the country, facilitating economic growth and reducing poverty. The total road network is about 260,000 km of which around 60% is paved. Road density is 0.32 km/km2 which is low and compares unfavorably with other South Asian countries (Bangladesh-1.7 km/km2, Sri Lanka-1.5 km/km2 and India-1.0 km/km2). The Government intends to generate/ mobilize all possible resources to double road density to 0.64 km/km2. Total roads, which were 229,595 KM in 1996-97, increased to 264,853 KM by 2007-08 an increase of 15.4 percent. During the out-going fiscal year, the length of the high typed road network increased by 3.2 percent but the length of the low type road network declined by 2.8 percent. Extent of high type roads have increased by 41.5

percent since 1996-97. A sizable and continuous improvement of the high type road network can be observed from 2001 to 2007, where the network grew at an average rate of above 3 percent. The continuous improvement and rehabilitation of the existing roads reflects the governments enhanced focus on infrastructure. As a result of an emphasis on high type roads, many low typed roads were converted to high typed roads during this period. There are many ways by which availability of improved and wide spread modern road networks can facilitate economic activity. For example, they could help alleviate poverty by providing access to far flung rural areas, create more jobs by supporting economic activity along the network and provide numerous small-scale investment opportunities. In addition, introduction of Khushal Pakistan Programme, has helped to rehabilitate and modernise rural road network along with implementation of wide ranging development activities through various district governments under the devolution programme. The annual growth of roads in Pakistan between 1996-97 and 2007-08 is given in Table-14.1 and Fig-14.2 225

Pakistan Economic Survey 2007-08

Table 14.1: Length of Roads Fiscal Year High Type Length %Change 1996-97 126,117 6.5 1997-98 133,462 5.8 1998-99 137,352 2.9 1999-2000 138,200 0.6 2000-01 144,652 4.7 2001-02 148,877 2.9 2002-03 153,225 2.9 2003-04 158,543 3.5 2004-05 162,841 2.7 2005-06 167,530 2.9 2006-07 172,891 3.2 2007-08 178,423 3.2 * Estimated # : The percentage change in low type roads can be type roads. (Kilometres) Low Type # Total Length %Change Length % Change 103,478 3.6 229,595 5.2 107,423 3.8 240,885 4.9 110,132 2.5 247,484 2.7 110,140 0 248,340 0.3 105,320 -4.4 249,972 0.7 102,784 -2.4 251,661 0.7 98,943 -3.7 252,168 0.2 97,527 -1.4 256,070 1.5 95,373 -2.2 258,214 0.8 91,491 -4.1 259,021 0.3 88,930 -5.6 261,821 0.1 86,430 -2.8 264,853 1.2 Source: Ministry of Communications negative as many of these roads are being converted to high

Fig-14.2: Length of Roads

50 70 90 110 130 150 170 190 00 00 00 00 00 00 00 00 0 0 0 0 0 0 0 0

Kilometers

1999-2000

1996-97

1997-98

1998-99

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

High Type Road

Low Type Road

b) National Highway Authority (NHA) The responsibility for development, operation, maintenance and preservation of the national highway network has been assigned to the National Highway Authority. Its objective is to secure the delivery of an efficient, reliable, safe and environment-friendly national highway network with a view to improving the quality of life in Pakistan. The Authority plays a major role in all-weather reliability, reduced transportation costs and increased access to markets for local produce and products, access to new employment centres, 226

employment of local workers on various projects, better access to health care and other social services, as well as strengthening of local economies. The NHA is currently the custodian of nearly all of Pakistan's major inter-provincial road links called the national highways, including the motorways and strategic roads. This network represents the main transport corridors linking ports to population centers and providing linkages to Afghanistan, the Central Asian Republics, China, Iran and India. These roads comprise of only around 4 percent of Pakistan's total road network but carry 80 percent

2007-08

Transport and Communications of the countrys commercial traffic. Consequently, the network is under pressure and its importance from a development perspective cannot be over emphasized. The province wise breakup of NHA network is given in Table.14.2.
Table:14.2 Province Province Punjab Sindh NWFP Balochistan NA/AJK Total Wise Break-up Km % Share 2659 23.16 1604 13.96 1651 14.38 4629 40.30 942 08.20 11485 100% Source: NHA

management through installation of Electronic Toll and Traffic Management Systems (ETTMS) under a phased program. Under the Annual Maintenance Plan 2007-08, NHA incurred an expenditure of Rs 5951 million for operation & maintenance of 9098 km of its network. The breakdown of this expenditure is given below:
Description Rehabilitation Structural Overlay Functional Overlay Routine Maintenance Highway Safety Total Km 114 287 514 8183 N/A 9098 Rs in Millions 1417 1638 1676 810 410 5951

The total NHA network of 11,485 km primarily consists of low capacity roads. About 75 percent are 2-lane (6.1m single carriageway), 20 percent are 4-lane divided highways (7.3m dual carriageways) and only 5 percent 6-lane highways (11m dual carriageways). Approximately 25 percent (or 2500 km) of the NHA network is in need of rehabilitation. This results in very low number of travel trips, slow speeds and an un-safe driving environment. Commercial traffic running speeds are between 35-45 kph, and average trip speeds are around 25kph; 1/3rd of the average trip speeds in developed countries. The present highway network is under strain because of rising traffic flow and a slow pace of increase in capacity. Consolidation, preservation and improvement of the existing highways are needed on an urgent basis. A Gradual extension of the network is also equally important to develop remote areas and to better connect major economic and social centers of Pakistan. The details of some selected major projects for the next five years are shown in Table.14.3. Operation & Maintenance: The NHA is giving special emphasis to the preservation of the existing highway infrastructure and on highway safety. Its endeavors to operate and maintain the network in a safe condition at an optimum cost while ensuring user satisfaction is limited by immense traffic and insufficient resources to meet the growing needs of the sector. Since O&M activities are dependent on toll, special attention is being accorded to enhance the efficiency of tolling systems and revenue

Providing adequate capacity is one of the key aims of the NHA presently. Pakistans primary traffic movements are concentrated along the KarachiLahore-Islamabad-Peshawar links which serves domestic needs. This also links Punjab and the northern parts of the country with ports and commercial hubs in the south. The main artery along this corridor is the 1819 km long N-5 which serves 80% of Pakistans urban population and carries over 65% of intercity traffic. The other main corridor is the Indus Highway (N-55). N-5 is an access-free, 4-lane divided facility with a capacity of 66,000 Passenger Car Units (PCUs). The current traffic volumes range from 7,000 to 40,000 vehicles per day which is 35% to 93% of existing capacity. Presently, 50% length of N-5 is in poor condition. Karachi - Lahore (1260 km) travel time is 48 hours and Karachi - Peshawar (1700 km) is 72 hours. Moreover, the average commercial operating speed is only 23 to 26 kph. The Governments goal of sustaining 7-8% economic growth would double traffic demand by 2017 but the N-5 will not be able to support this projected transport demand. The NHAs portfolio cost is Rs 705.48 billion with a throw-forward of Rs 570.84 billion. The ratio of throw-forward to annual allocation is 31, meaning that at current funding level of Rs 29 billion; approximately three years are needed to complete the ongoing portfolio. Due to limited fiscal space and an increase in yearly allocation being rather unlikely, NHA is looking towards new and innovative methods of financing. A new 227

Pakistan Economic Survey 2007-08 business plan is currently under finalization for approval by the Government. Initiatives and Future Outlook: The Government of Pakistan has planned 50 mega projects for provision of better quality highways, expressways & motorways throughout the country during the next few years. Some of the planned initiatives include: construction of major new motorways, modernization of trucking fleet with newer, more efficient, and environment friendly vehicles; promotion of industrial clusters along highways/ motorways, establishment of warehouses by the private sector along the network. NHA is also implementing a major National Highway Improvement Program (NHIP) in phases at a cost of Rs 20.25 billion. Out of a total length of 836 km to be reconstructed / rehabilitated, work on 380 km has been completed. Out of the balance, 268 km shall be completed by Dec 2008 & the remaining 188 km by Jun 2009. Program includes reconstruction and upgradation of Lahore Gujranwala Section from 4 to 6 lanes. A complete list of on-going and future projects is given in the tables below. The National Highway Authority plays a vital role in the efficiency and productivity of Pakistans transportation sector. In order for the country to reap the benefits of a truly efficient road network, efforts must be made to maintain the existing network in optimal condition. An increase in the network is required to facilitate the increase in traffic and movement of goods in the future. Innovative methods of financing, private sector participation, and environmental aspects must be taken into consideration while adding to the existing network.
Length (KM) 335 120 258 97 51 34 100 184 100 385 200 270 136 46 165 100 120 Source: NHA

Table:14.3 Selected Major Planned Projects for the Next Five Years S.No. Project 1. Improvement/Widening of KKH (Khunjerab-Raikot Section) 2. Realignment of KKH (Raikot-Sazin Section) 3. Improvement/Widening of KKH (Sazin-Manshera Section) 4. Manshera-Abbottabad-Hasanabdal Expressway 5. Peshawar-Torkhum 6. Peshawar Northern Bypass 7. Underpass at Wah Gate No.1, Taxila-Hasanabdal Section 8. Wazirabad-Pindi Bhattian Expressway (E-3) 9. Hiran Minar Interchange (M-2) with link road 10. Faisalabad-Khanewal Expressway (E-4) 11. Khanewal-Lodhran Expressway 12. Lodhran-Sukkur Expressway 13. Ratodera-Sehwan (N-55), ACW 14. Karachi-Hub-Dureji-Dadu Motorway (M-7) 15. Karachi-Hyderabad Motorway (M-9) 16. Jand-Kohat Notional Highway (N-80) 17. Noshki-Dalbadin Section (N-40), Balochistan 18. Gujranwala-Dina Expressway 19. Chakdara-Dir, Kalkatak-Chitral (N-45) 20. 4 Bridges over River Indus in Punjab & Sindh

ii. Pakistan Railways An efficient transportation system plays a vital role in the economic development of a country. The government vision for economic growth and poverty reduction requires massive investment and development of infrastructure for sustainable economic growth. Pakistan Railways has a definite edge over roads for long haul and mass scale 228

traffic movement both for passengers and freight in addition to providing a safe, economical, and environment friendly mode of transport. Throughout world history, rail traffic has played an important part in the development and economic prosperity of nations. Railways are a valuable source of employment while generating large

Transport and Communications amounts of revenue to the benefit of the economy. An effective railway system facilitates commerce and trade, reduces transportation costs (monetary and non-monetary), and promotes rural development and national integration while reducing the burden on commuters. Pakistan Railways was the primary mode of transportation in the country till the seventies. However, owing primarily to a diversion of already scarce resources towards the expansion of the road network, the performance and condition of Pakistan Railway declined and its share of inland traffic reduced from 41 percent to 10 percent for passenger and 73 percent to 4 percent for freight traffic. During the last seven years (2000-2007), Pakistan Railways has shown improving trend in both passenger and freight traffic, registering an average increase of 5.2 percent and 5.8 percent per annum, respectively. A reduction in passenger traffic has been seen for this year with a negative growth rate of -12.5 percent whereas freight traffic has grown by 18 percent over the same period last year. The positive growth trend for the past seven consecutive years can be attributed to the wide range of improvements made by the Pakistan Railways through completion of a number of development projects and better policies aimed at modernization of PR. The fall in growth rates for passenger traffic this year can be attributed to the chaos, political strife, and rioting that the year 2007-08 has seen. Many parts of the railway track have been destroyed with immense damage being caused to the property of Pakistan Railways. The service remained closed for a substantial amount of time following the violence witnessed in the country in December 2007 after the assassination of one of its political leaders. Some estimates put the loss suffered by Pakistan Railways at the expense of this years disturbance at Rs 10 billion. Pakistan Railways has introduced 9 new train services in order to facilitate passengers as well as freight customers. (See Table.14.5). PR has also improved the quality of its services, timeliness and cleanliness. This trend is reported in Table.14.4.
Freight (Million Ton KM) %Change Rail 5.6 4,607 6.1 4,447 6.4 3,967 6.3 3,753 5.7 4,520 0.2 4,573 1.2 4,820 3.7 5,336 1.8 5,532 0.6 5,916 5,453

Table 14.4 Trend of Passengers Traffic and Freight Traffic (Road vs Rail) Passenger Traffic (Million passenger Km) Fiscal Year Road %Change Rail %Change Road 1996-97 163,751 5.9 19,114 1.1 84,345 1997-98 173,857 6.2 18,774 -1.8 89,527 1998-99 185,236 6.5 18,980 1.1 95,246 1999-00 196,692 6.2 18,495 -2.6 101,261 2000-01 208,370 5.9 19,590 5.9 107,085 2001-02 209,381 0.5 20,783 6.1 108,818 2002-03 215,872 3.1 22,306 7.3 110,172 2003-04 222,779 3.2 23,045 3.3 114,244 2004-05 232,191 4.2 24,238 5.2 116,327 2005-06 238,077 2.5 25,621 5.7 117,035 2006-07 26,446 3.2 Jul-Mar 2006-07 2007-08* * Estimated 191,057 -20,921 18,296

%Change -9.3 -3.5 -10.8 -5.4 20.4 1.2 5.4 10.7 3.6 6.9 -7.8

--

88,032 3,786 -12.5 ----4,488 18.5 Source: Ministry of Railways & Ministry of Communications

In order to continue improvements and to consolidate reforms, Pakistan Railways has prepared a business plan for 2005-11. The plan places emphasis on encouraging private sector participation in order to increase its competitiveness, responsiveness and efficiency. Pakistan Railway is planning to take a series of interlinked initiatives, which will enable it to

compete efficiently in the fast growing transport sector in Pakistan. Pakistan has awarded a contract to an international consortium to carry out a feasibility study for establishing a rail link with China. A rail link could further boost trade relations between the two countries by facilitating the already growing trade with China and operations of Gwadar Sea Port. 229

Pakistan Economic Survey 2007-08

Table: 14.5 New Trains S.No Trains i) Thar Express ii) Margala Express iii) Marvi Express iv) Sindh Express v) Buraq Express vi) Peshawar Express vii) Pakistan Express viii) ix) Jinnah Express Sir Syed Express

Section Karachi-Zero Point Lahore-Rawalpindi Mirpurkhas-Khokhropar Lahore-Karachi Rawalpindi-Karachi Peshawar-Rawalpindi Rawalpindi-Karachi (Via Hafizabad, Faisalabad And Multan) Karachi-Rawalpindi. Rawalpindi-Karachi

Date of Commencement 18-02-2006 22-05-2006 07-06-2006 24-07-2006 14-08-2006 15-12-2006 16-12-2006 08-01-2007 08-03-2007 Source: M/O Railways

The PDSP allocations for the Railway sector were increased from Rs 3. billion during 2000-01 to Rs 11.642 billion in 2007-08. Major development schemes include track renewal of 240 KM of rails and 220 KMs of sleepers planned for main line from Karachi- Khanpur. Additionally, 20 units of locomotives in CKD condition received from China will be manufactured at the Pakistan Locomotive Factory in Risalpur. This will complete the scheme for Procurement. Manufacture of 69 DE locomotives. The scheme for recomissioning of 55 DE locomotives will be completed in the year 2007-08 as well. 655 CKD wagons received from China will be manufactured at Pakistan Railway Workshop in Moghalpura thus completing the scheme for Procurement/Manufacture of 1300 high capacity wagons. Rehabilitation of 400 old coaches is underway with 130 coaches expected to be rehabilitated in this fiscal year. Another on-going development project is the next phase in the doubling of tracks from Khanewal- Lahore (246 KM). In addition to these development projects, the following feasibility studies have also been sanctioned to explore future prospects and initiatives: High Speed Double Track between Lahore and Rawalpindi. Rail link from Havelian to Pak-China Border. Doubling of track and realignment between Shahdara-Rawalpindi.

Doubling and Realignment of track between Golra Sharif-Peshawar.

The earning of Pakistan Railways since 1998-99 are given in Table.14.6.

Table-14.6 : Earnings of Pakistan Railways (Rs. Million) Year Earnings % Change 1998-99 9,310 -1999-2000 9,889 6.2 2000-01 11,938 20.7 2001-02 13,046 9.3 2002-03 14,812 13.5 2003-04 14,636 -1.2 2004-05 18,027 23.2 2005-06 18,184 0.9 2006-07 19,194 5.5 July-Mar 2007-08 13,954 Source: Ministry of Railways

iii)

Civil Aviation Authority (CAA)

Civil aviation plays an important role in the development of a countrys economy by providing fast and efficient access between different parts of the country as well as different destinations around the world. Private participation on this front has been encouraged through concessions and incentives for development of airports and airlines to increase the availability of air transport services both domestically and internationally. It is important to construct and maintain airports in the country to facilitate economic activity in an increasingly globalized world. The construction of the new Islamabad international airport (NIIA) is expected to play a major role in the national

230

Transport and Communications aviation sector. The airport will be developed by the Civil Aviation Authority (CAA) on a selffinance basis with an estimated cost of Rs. 30 billion on 3200 acres of land, and is expected to be completed by December 2010. The project has been designed with all the essential facilities to handle an annual traffic of 9 million passengers as well as 100,000 metric tons of cargo. To supplement the growth and development of Balochistan, the CAA is going to construct the New Gwadar International Airport (NGIA) through the Public Sector Development Programme (PSDP), at a total estimated cost of Rs. 3.6 billion. The airport will be developed as a major hub for all aviation activities in the region, and it is expected to be completed by November 2010. The upgrading of Multan and Peshawar International Airports have also been initiated with estimated costs of Rs. 2.6 billion and Rs. 0.6 billion respectively. a) Pakistan International Airlines (PIA) The restrictions imposed by the EU were lifted near the end of 2007 as PIA was able to satisfactorily address the issues highlighted by the Air Safety Committee. A route rationalization plan was implemented whereby services to some nonperforming sectors were discontinued while capacity on other routes were realigned with available traffic. These and various cost reducing measures taken by the management did not result in profits for the airline, but was effective in reducing the magnitude of the losses suffered. Despite these financial difficulties, the airline remained on track on its fleet modernization plan and by December 2007, the average age of PIA;s fleet was reduced to 13 years. The total international passenger traffic to and from Pakistan increased by 5.7 percent over the last year, but due to EU restrictions on PIA flights and the damage to its image, PIAs international passengers declined by 4.2 percent. Thus against an international market share of 48 percent in 2006, PIAs market share dropped to 43.5 percent. In the domestic market, despite an overall traffic decline of 6.4percent, PIA was able to retain its market share at 69.4 percent. On a system-wide basis, PIAs market share was 51.2 percent against 54.9 percent last year. In terms of capacity utilization, the System Passenger Seat Factor (excluding Haj) was 69 percent against 70 percent last year while with the Haj inclusion, the System Seat Factor was 67.4 percent against 68.5 percent last year. Though the airline faced shortfall in ASKs (Available Seat kilometres) by 8 percent in 2007 as against 2006, it registered an increase of Rs 1.1 billion in passenger revenue as compared to 2006. PIAs cargo traffic in terms of RFTKs (Revenue Freight Tonne Kilometers) was significantly down by 17.9% over last year Pakistan International Airlines revenue passengers carried for the year 2007 was 5.415 million as compared to 5.732 million passengers in the same period of last year, showing a decline of 5.5 percent. The airlines revenue was Rs. 70,480.73 million in 2007 as against Rs. 70,587.15 million generated in the corresponding period of 2006, registering a marginal decrease of 0.2 percent. During 2007, cargo traffic was 350.76 million 231

The year 2007 turned out to be an exceptionally difficult year for PIA. The Airline experienced a series of financial, operational and marketing problems during the past year that severely hampered its performance. In the early part of the year, an operating restriction was placed on PIA flights by the European Union. Apart from providing a negative image for the Corporation, this translated to a loss in market share as well as growth in business which made the situation exceptionally difficult. An unprecedented increase in oil prices adversely impacted PIAs bottom line and neutralized recovery efforts. Attempts were made to contain the impact of a rising fuel bill by reducing the utilization of older and fuel inefficient planes. The airline was also mired by increases in pay to certain categories of personnel and a depreciation of the Rupee against the Dollar. Ever increasing competition and entry of new operators in certain key markets reduced the level of traffic for PIA. Yields were increased despite the added competition but revenues remained static for the year. The financial position of the company remains under strain as financial costs increased by almost 50 percent, negating a reduction in operating expenses of Rs 2.6 billion.

Pakistan Economic Survey 2007-08 Revenue Freight Tonne Kilometre (RFTKS) as against 427.01 RFTKS in the same period last year thus registering a decline of 17.9 percent. The unprecedented hike in oil prices over the course of the year adversely impacted PIAs bottom line and neutralized the efforts for recovery. PIA, however, made efforts for containing the fuel bill by reducing utilization of older fuel-inefficient fleet. The total number of aircrafts in PIAs fleet to stood at 42. iv) Ports & Shipping a) Karachi Port Trust (KPT) The steady and continuous progress made by KPT has helped boost the national economy over the years with international trade ever-increasing in a globalized world. The KPT had an annual cargo handling size of 30.8 million tons during 2006-07, showing a slight decrease of 4.4 percent over last years record cargo handling of 32.3 million tons. However, there has been a rise in activity during the first seven months of the current fiscal year, showing remarkable increase in all types of cargo handling including bulk, Break bulk and containers. Figures show that during the first seven months of the current fiscal year, already 20.5 million tonnes of cargo has been handled. Statistics of cargo handled during the last ten years are given in Table 14.7

Table 14.7 : Cargo Handled at Karachi Port (000 Ton) Year Imports %Change Exports 1996-97 18,362 -1.9 5,113 1997-98 17,114 -6.8 5,570 1998-99 18,318 7 5,735 1999-2000 17,149 -0.9 5,613 2000-01 20,064 10.5 5,918 2001-02 20,330 1.3 6,362 2002-03 19,609 -3.5 6,273 2003-04 21,732 10.8 6,081 2004-05 22,100 1.7 6,515 2005-06 25,573 15.7 6,697 2006-07 23,329 -8.77 7,517 (July-Jan) 2007-08 15,090 5,455

%Change 5.2 8.9 3 -2.1 5.4 7.5 -1.4 -3.1 7.1 2.8 12.24 -

Total 23,457 22,684 24,053 23,762 25,98 26,692 25,852 27,813 28,615 32,270 30,846 20,545

% Change -0.4 -3.4 6 -1.2 9.3 2.7 -3.1 7.6 2.9 12.8 -4.41 Source: KPT

The existing port facilities appear to be inadequate to handle the growing cargo at the port. In order to address these constraints, the KPT has launched a number of projects that are at different stages of execution. A number of these projects have been formulated for phased implementation on a BOT basis, covering various activities in port operations. The KPT has commissioned the project titled Karachi Interval Container Terminal (KICT). The project is already operational at the west wharf and it has annual capacity of 350,000 twenty equal units (TEU). An additional $ 65 million was invested to enhance its capacity upto 525,000 TEU. The 3rd phase of the project was launched on March 7, 2005, with an investment of US$ 55 million to extend the capacity up to 700,000 TEU. In addition, KPT has awarded a contract for a second container terminal on BOT basis with 232

estimated cost of US$ 75 million. To ease transportation problem between the port and the factory, the KPT has pledged to contribute over Rs.2.8 billion for reconstruction of roads. As the new generation of container ships come on board, KPT is taking initiatives to be able to cater to the even higher capacity fifth and sixth generation ships. This involves the development of 10 deep draught berths with the total cost of US $ 1,087 million. Furthermore, a Cargo Village and Industrial Park in the Western backwaters of Karachi Port has also been proposed. Finally, to provide connectivity between the Pakistan Deep Water Container Port and the Cargo Village, KPT is planning to construct a Cable Stayed Bridge across the channel, which will also connect Clifton with Manora and Hawksbay.

Transport and Communications b) Port Qasim Port Qasim is the first industrial and commercial port of Pakistan operating under landlord concept. Today it caters for around 40% of shipping requirements of the national economy. During the last financial year 2006-07, PQA handled a record volume of 24.3 million tonnes cargo showing an impressive growth of around 13% over corresponding period. However, from July to March of the current financial year, 2007-08, PQA handled 19.76 million tonnes of cargo depicting a growth rate of 10% over the same period last year. Cargo volume also surpassed the budget targets by 3% during the same period under review. There has been a vast improvement in cargo handling over last five years. Average annual growth has been around 13.5% over the last five years which calls for development of new berths/terminals for capacity enhancement. The current handling capacity of the port, with ten berths, is 34 million tonnes per annum. To meet the ever growing requirement of capacity enhancement, PQA has chalked out an ambitious development plan. As against 3 private sector projects, 9 private sector projects which include Liquid Cargo Terminal, 2nd Container Terminal. Grain & Fertilizer Terminal, Coal & Cement/clinker Terminal, Gasport LNG Floating terminal, Granada LNG Terminal, 2nd IOCB, 2ND Oil Jetty and Mashal project by Sui Southern Gas Company are being implemented by the private sector with the completion of these terminals expected by 2010. With the projects in the pipelines, the PQA aims to increase its handling capacity to 85 million tonnes per annum, an increase of 150%. PQA is committed to the objectives laid out under the National Trade Corridor, i.e. capacity enhancement, deeper draught berths, competitive tariffs and uninterrupted flow of cargo. PQA plans to deepen its navigation channel at a cost of US$ 100 million. The Port Authority is also pursuing the development of industrial zones. Plans are in the pipelines to spend more than Rs. 13 billion on infrastructure facilities in various industrial zones. Currently 104 projects are already operational while 179 are in construction phase. The completion of these will not only accelerate industrialisation in the country, but will also be a valuable source of employment generation. During the last 3 years a marked improvement has also been witnessed in revenue growth. The revenue generation over the last five years was increased from Rs. 2 billion to Rs.3.4 billion. The PQA is currently pursuing a large number of projects for capacity enhancement and industrialization, attracting foreign direct investment (FDI) and simultaneously undertaking major infrastructure development to enhance its efficiency. The port has already attracted US $ 1.5 billion of FDI. c) Pakistan National Shipping Corporation (PNSC) PNSC fleet comprises of 14 vessels with a total capacity of 536,821 dwt. The fleet consists of 10 multi-purpose cargo vessels, 3 Aframax crude oil tankers and one Panamax bulk carrier vessel which were acquired through PNSCs own resources. The three Aframax oil tankers are participating in national and regional crude oil trade. PNSC has carried crude oil cargoes for India, Bangladesh and Sri Lanka. During fist six months of the current fiscal year, the PNSC has lifted 5.87 million tonne of liquid cargo and 1.3 million tonne of dry cargo. The Corporation is continuing with its efforts to add more vessels. The share of lifting cargo has increased from 10.55% in 2001 to 17.47% in 2007. PNSC is expected to increase its fleet in 2007-08 by acquiring 3 new ships. A loan agreement has been signed with a foreign bank for this very purpose for an amount of US$ 135 million. For the first six months of the current fiscal year, the PNSC group has generated Rs 7,471 million in revenue, a 11 percent increase from the revenue earned during the same period last year. For FY 2007-08, PNSC has posted a before tax profit of 1,957 Rs million, an increase of Rs 100 million from profits in the same period last year. The Corporation also witnessed a healthy increase of 9.1 percent in earnings per share. 233

Pakistan Economic Survey 2007-08 d) Gwadar Port Gwadar, a district of Balochistan enjoys a strategic position on the coastline with immense trade potential for not only Pakistan, but also for the region in general. The purpose of developing a port at Gwadar is to stimulate economic growth in the western and northern parts of Pakistan, utilizing the available coastline resources of the country and also providing and outlet for land-locked Central Asian Countries and Afghanistan through transit trade and offering trans-shipment facilities. With a fully equipped and well-functioning port at Gwadar, Pakistan will be able to promote trade and transport with Gulf States, China, Europe, Africa and Central Asian Countries; unlock the development potential of hinterland; divert the influx of human resources from upcountry to Gwadar instead of Karachi; provide a socioeconomic uplift of Gwadar, the province of Balochistan and the country in general; establish shipping related industries; reduce the congestion and dependency on existing ports; and serve as a regional hub for major trade and commercial activities. Work on Gwadar Port started in 2002 with major construction having been completed in early 2007 and the official inauguration on 20th March 2007. The total cost of Phase I of the Gwadar Deep Water Port Project was Rs. 17.3 billion with generous support from the Chinese Government, who not only provided financial support but also technical expertise. To facilitate the growth and development of Gwadar Port, the Government of Pakistan has granted special waivers and tax exemptions on construction equipment, machinery, corporate income and provisional and local taxes. A deep sea port like Gwadar is already attracting global attention, and once it is fully developed with all supporting facilities required to handle transshipment and trade, Gwadar will become one of the important gateways to the region. In order to achieve the objectives of the Gwadar Deep Water Project and enhance the economic development of Pakistan, the operations and management of the port was handed over to the Port of Singapore Authority (PSA) under a 40 year agreement. PSA 234 is a global leader in port operations, and is already operating 19 ports in 11 different countries. They have the plans and capacity to turn Gwadar into a regional hub through their strong links in the Maritime world and their contacts with various shipping lines. e) Future Outlook National Trade Corridor In 2005, the Government of Pakistan launched major initiatives around the National Trade Corridor Improvement Program (NTCIP) to reduce the cost of trade and transport logistics and bring the quality of services offered to international standards. The aim being a reduction in the cost of doing business and ultimately enhance industrialization and the competitiveness of the Pakistani economy The word corridor is a vestige of the initial Peshawar-Karachi (North-South) focus of this initiative, but at present NTCIP has evolved into a national program to improve the overall cost and efficiency of all links in the chain (infrastructure and services) that support trade logistics. The NTCIP also aims to meet increased demand through both improved infrastructure and more efficient services, while keeping costs under control. It is a medium term program that eventually links to the Governments Vision 2030. With a reform agenda supplemented by a strong investment program, NTCIP has become, essentially, the medium term development framework for the transport sector. Policies have been developed to meet NTCIPs challenges: (a) modernize and streamline trade and transport logistics practices and customs; (b)improve port efficiency, reduce the costs for port users and enhance port management accountability; (c) create a commercial and accountable environment in Pakistan Railways and increase private sector participation in operation of rail services; (d) modernize the trucking industry and reduce the cost of externalities for the country; (e)sustain delivery of an efficient, safe and reliable National Highways system; and (f) promote and ensure safe, secure, economical and efficient civil aviation operations and boost air trade.

Transport and Communications Tele-densities of Regional Countries (%)

Pakistan
60

Sri Lanka India Bangladesh Nepal

57 51

50

45 37

40

30 23 20 17 10 12 7 4 2 9 6 2 12 5 3

29 26 20 13 9 4 15 7

24 19 10

committee under the NTCIP task force led by the Infrastructure Projects Development Facility; (x) finalizing the overall transport policy document for Pakistan with ADB and World Bank collaborating on its development and a road map being laid down by the Planning Commission for its finalization; (xii) Port Qasim Authority preparing its first Business Plan which is now in the system for approval; (xiii) the discussion of the first draft of the revised Afghanistan- Pakistan Transit Trade Agreement; (xiv) the procurement of Pakistan Automated Customs Community System. Telecom Sector Telecom sector continued to show stellar growth in last few years. Tele-density in the country has jumped from a mere 6% to 57% (Mar- 08) in few years. Pakistan was far behind in terms of telecom penetration few years back compare to its peer countries like India and Sri Lank however; its teledensity crossed both of these countries in last two years. Prudent policies of the government and concrete steps by the regulator have placed Pakistan telecom sector among rising economies like Malaysia and Singapore. Pakistan telecom sector has emerged as the fastest growing sector in the world where the infrastructure and subscriber growth patterns are unmatched all across the region. On average, more than 2 million subscribers are being added on cellular mobile networks per month which is an exemplary growth in the region. Currently, the total subscription base of cellular mobile companies is about 80 million while the WLL subscribers are 2.2 million. WLL is a latest technology introduced in Pakistan especially to cover the digital divide between rural and urban areas. Telecom Sector Overview Fixed Tele-density has slightly declined from 3.1% in 2006-07 to 2.9% in 2007-08 (Mar-08). Major reason behind this decline is the churn of subscribers from fixed line to wireless based services like WLL and mobile services. WLL sector is performing well and its tele-density has reached to 1.48% in 2007-08 (Mar-08). Total subscribers of WLL in Pakistan crossed 2.3 million in March 2008 which has boosted tele-density in the country. 235

2003-04

2006-07

2002-03

Teledensity includes fixed, WLL and mobile Bangladesh 2007-08 (Estimated) As of Dec 2007 execpt Pakistan Mar 08 Source: Websites of Telecom Regulatory Authorities

Since the launch of the NTCIP, some early gains of the program have already been achieved: (i) reduction of port entry charges by 15 percent at Karachi and Port Qasim; (ii) reduction of port transit times from nine to four days and reductions of customs clearance times from four to less than one day for containers; (iii) increase in daily freight express trains on the main north-south corridor from 1 to 5, reducing up-country container travel times by 10-20 percent; (iv) reduction of import tariffs on new trucks; (v) the approval of the first Trucking Policy (covering the overall road freight industry) followed by an organized effort to start preparation and implementation of this policy; (vi) the approval of the new civil aviation policy after a long series of consultations (including the Government seeking public comments for the first time in the history of civil aviation in Pakistan); (vii) the approval of the trade facilitation policy for Pakistan;(viii) Pakistan Railways preparing the very first draft Network Statement which is a key step towards movement on track access; (ix) main-streaming of Public Private Partnership in the NTCIP effort by the setting up of a specific sub-

2007-08

2004-05

2005-06

Pakistan E Economic Sur rvey 2007-08 8 Sub bscriber Wise share in mo e obile market t (2005-06) ( (Mar-08)
Warid 14% Telen nor 10% % Pak ktel 3% % Instaphone e 1% Warid 17.4% Mobilink % 38.5%

Teleno or 20.2% % Mobilink 50% Insta aphone 0.4% 0 Paktel 2.6%

Ufone 22%

Ufone 20.8%

Mobile Cellular M Pakistan has become one of the fastest growi ing mobile m markets amo ong the eme erging teleco om markets. This year the sector grew by 80 0% average growt rate in last 4 years is mo th ore whereas a than 100% Today tot subscriber base stands at %. tal r s 82.5 mill lion (Mar 2008) wherea it was 34 as 4.5 million in 2006 and 12.7 million in 2005. This n n tremendou growth is attributed to many intern us o nal and exter rnal factors starting from deregulati m ion down to implementation of M Mobile Numb ber Portability The gove y. ernment and regulator a d are trying the best to facilitate the sector and a eir f are making e every effort to provide m t mobile access to every corn of the cou ner untry. Cellula Subscriber ar rs
90 80 70 60 50 40 30 20 10 0 82.5 62.3 34.5 5 12.7 2.4 200203 5 200304 200405 200506 200607 'Mar 08

towns a villages h and have mobile n networks by o or one all oper rators. Long D Distance and Internation d nal The L Long Distan nce and Int ternational (LDI) segmen has evolv nt ved after the deregulatio of e on Pakista telecom se an ector in 2004. PTA award 14 ded license for Long Distance and Interna es g ational service till 2007. O of these 14 LDI lice es Out ensees only M Multinet has no started its s ot services. 3 ou of 6 ut cellular operators ha also acqu r ave uired LDI lice enses. The LD operators are performing aggressive in DI ely the loc market by offering aff cal y fordable tarif for ffs large n number of co ountries. PTC also reduc its CL ced tariffs at the end o 2006 and now interna of ational direct d dialing facilit is availabl on every P ty le PTCL connec ction and call booking is no more required. l Similar internation dialing fa rly nal acility from m mobile number has also rev volutionized th LDI segme he ent. The se ector witness sed bloomin health wh ng herein telecom consumers enjoyed inter m rnational diali as ing low as Rs. 1/- min s nute (to specific countrie by es Wateen Due to th aggressive competition it is n). his e n becomi ing increasin ngly difficu for ineff ult ficient operato to sustai their fina ors in ancial health and h growin pressures from the m ng market. Comp panies have s started lookin for forei ng ign investme to ent survive in the mark e.g. World e ket dcall has sold 65% d of its s shares to Oma telecom, a 30% shar of an also res Burraq have been acquired by Qatar Tele q y ecom. These changes in th market als show incre he so easing inertest of Mid-Eas based telec t st com companies in the tele ecom market of Pakistan.

Out of the total popula e ation of Pakist almost 90 tan, 0% of popula ation is cover with mob networks in red bile addition t availability of fixed and WLL servic to y d ces to this p percentage. All operators are increasi A ing their netw works to numb of cities/ towns/ villag ber ges. Upto December 2007 more than 7,011 citi 7 n ies/ 236

Million

Transport and Communications Fixed Local Loop Services Fixed-line telephony in Pakistan is one of the difficult areas where the incumbent operator, PTCL, holds monopoly with share of more than 98% of the total Fixed-line subscribers. Fixed Local Loop (FLL) growth remained about half percent during the previous year, slow growth is due to the cumbersome activity of laying cables. However, new operators are gaining momentum in fixed-line telephony though their services remained localized in main cities by targeting businesses in the first place. FLL subscribers reported 4.6 million and tele-density is 2.9% at the end of March 2008.
Fixed Line Connections (2004-2007)
6.0 5.0 4.0 Million 3.0 2.0 1.0 0.0 2002 2003 2004 2005 2006 2007 'Mar - 08 3.7 4.0 4.5

26% share of Telecard. In addition, the WLL operators are also providing Payphone facilities to the general public. There are a total of 225,980 wireless PCOs in Pakistan.
WLL Subscribers
1,702,098 2,356,081 'Mar - 08 2,500,000 2,000,000 1,500,000 264,828 1,000,000 500,000 0 2003-04 2004-05 2005-06 17,391 1,025,328 2006-07

5.2

5.24

4.8

4.6

Value Added Services Value added Services have been deregulated since 1990 in Pakistan and private operators are providing these services to consumers. In 2005 PTA introduced Class Value Added Service (CVAS ) regime where most of the CVAS licenses have been merged into one single license. Some of the services have been exempted by the Authority from obtaining license and the process of simple registration has been established for convenience of operators and telecommunication services users. Since the introduction of CVAS licensing regime in October 2005, PTA has issued 224 CVAS licenses and 4 Class Value Added Registrations (161-Voice Class Value Added Services licenses, 67-Data Class Value added services Licenses). Out of 161 Voice TYPE CVAS licenses, 153 Licenses have been issued to CPP operators Payphones All over the world, payphones are regarded as the poor mans telephony. They provide easy access to people who can not afford to have telephone access at home. It is also a source of self employment in developing countries. Card payphone service in Pakistan was deregulated in 1990s. 237

Wireless Local Loop Wireless Local Loop services were introduced in Pakistan after deregulation of local loop sector in 2004. The Authority auctioned frequency for commercial operations of WLL services. A total of 17 companies won WLL licenses, out of which six operators obtained WLL license in all 14 telecom regions after winning the frequency. Out of these 17 WLL companies 7 (PTCL, Worldcall, Telecard, Great Bear, Burraq, Wateen and Mytel) are fully operational. The recent development is the introduction of WiMax technology by WLL operators, which will make available high quality broadband data/ Internet services. Total WLL subscribers have reached 2.3 million and the tele-density is 1.48. The sector has witnessed 65% growth in subscribers during 200607. PTCL is currently leading the WLL market as well with maximum share of 53% followed by

Pakistan Economic Survey 2007-08

Payphones in Pakistan
500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
471,410 387,490 353,194 279,320 184,920 127,910

Internet Services Internet service is becoming an integral part of life in Pakistan particularly in urban areas where large portion of populace using it for different purposes. Most Airlines including PIA and Air Blue have started e-ticketing through Internet to provide better and efficient services to its customers. Internet is also being used for educational and entertainment purposes and its use is increasing very fast. Major reason for rapid growth of the service is low cost of the service which make service affordable to poor strata of the population. Almost 70 companies are providing Internet service all across the country. According to estimates by the Internet Service Providers Association of Pakistan (ISPAK), currently there are about 3.5 million internet subscribers all across in Pakistan where total users crossed 17 million marks. Currently around 3,008 cities are connected to internet cities.
Internet Subscribers (Millions)
3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2001 2002 2003 2004 2005 2006 2007 0.8 1.0 1.6 2.4 2.0 2.1 3.5

2004-05*

2005-06*

*Including Payphones of FLL, WLL and Mobile companies

During the last one and a half year a number of new companies have applied for Voice Class Value Added services license. Now, these companies are joining hands with mobile Companies to establish Mobile PCOs rather than fixed line PCO. Mobilink, Telenor and CMPak (Paktel) have started providing Mobile PCOs after obtaining the permission from PTA. Similarly, some old players of CPP industry themselves got licenses for WLL and now they are offering services on their WLL networks. Total payphones reached to 471,410 at the end of December 2007. Currently, more than 121,358 Fixedline, 262,116 WLL and 57,939 Mobile PCOs are working all across the country. Broadband Services Pakistan's broadband market has been slow despite the fact that services have been available since almost five years. Currently there are a total of almost 12,689 Broadband subscribers which provide dismal picture when compared with other similar economies. Telecom regulator is trying hard to improve broadband penetration in Pakistan; however, factors like lack of education, IT equipments are main hurdles in the way of its growth. To make the service affordable for common man, PTA has already reduced Bandwidth charges tremendously.

2006-07*

2002-03

2003-04

Dec-07

Telecom Economy Foreign Direct Investment (FDI) Government has created a conducive and investor friendly environment in the telecom sector by awarding licenses in a fair and transparent manner. Award of cellular mobile licenses increased Foreign Direct Investment considerably.

238

Transport and Communications During 2007-08 (July-March), an FDI inflow of US$ 811.6 million has come in the telecom sector which is almost one third of the total FDI in the country during the period. This trend has continued and during Jul 07-Dec 07, US$ 653.4 million FDI inflows came in the telecom sector and it is expected that during 2007-08 this will be increase further. Contribution to Government Revenues Telecom sector is a major contributor in generating revenues for the Government. During 2006-07 total revenue collected by the Government in the form of taxes, duties and regulatory charges was more than Rs. 100.5 billion. The government collected total of Rs. 36.6 billion against GST/CED, it is expected that this collection would grow exponentially in the coming years. The government also collects activation tax on new mobile connections @ Rs.500. During 2006-07 total amount collected in the form of activation tax was Rs. 17.6 billion. Similarly PTA also deposited Rs. 7 billion to the national exchequer [Table 14.8].
FDI in Telecom Sector
2000 1500 US$ Million 1000 500 0 2005-06 2006-07 Jul-Dec 07 1905.1 1,824.20

653.4

Employment The telecommunications sector liberalization in Pakistan has created huge employment opportunities (direct and indirect) in the country. It is estimated that over one million job opportunities have been created since the liberalization of the sector in 2003.

Table-14.8: Telecom Contribution to Exchequer (2007) (Rs. in Billions ) Period GST Activation Tax PTA Deposits Others Total 2001-02 8.9 0.12 0.04 0.99 10.05 2002-03 11.5 1.91 0.47 15.75 29.63 2003-04 12.1 4.02 0.69 21.59 38.40 2004-05 20.5 7.53 17.72 21.38 67.13 2005-06 26.8 11.40 17.38 21.55 77.10 2006-07 36.28 17.58 9.72 36.95 100.55 Source: Central Board of Revenue and Pakistan Telecommunication Authority. Others include custom duties, WH Tax and other taxes.

Regulatory Steps for Promoting Telecom in Pakistan Rural Telephony PTA Launched a project of Tele-centres (Rabta Ghar) across Pakistan to provide basic telecom facilities to the people who cannot afford such telecom facilities at their own. PTA planned to set up 400 Tele-centres (Rabta Ghars) free of cost. The first phase of Rabta Ghar scheme has been launched during the year where 353 Rabta Ghar are being established. Each Rabta Ghar is being equipped with a PC, one Wireless PCO, One Internet enabled Wireless set, Printer, scanner, copier and fax (4 in 1 machine). In addition to that

each Rabta Ghar owner is being provided with a comprehensive training from the GID. Technical Solution to Counter Illegal Telecom Traffic PTA had taken several regulatory measures to counter the grey (Illegal) traffic in the country which is causing huge losses to the national exchequer and to the operators in Pakistan who have invested heavily in telecommunications infrastructure. PTA has estimated that approximately US$ 50 million (Rs 3 billion approx) loss accrued per annum to national exchequer due to international traffic leakage. To 239

Pakistan Economic Survey 2007-08 control this leakage, PTA has acquired technical solution to detect/block all illegal traffic bypassing legitimate gateway exchanges in Pakistan. To overcome this menace, Pakistan Telecommunication Authority (PTA) has signed an agreement with Inbox Business Technologies to acquire and deploy Technical Solution [See Table14.9]. The Technical Solution has been developed by NARUS, Inc, a US based company which is also the leader in carrier-class security for the world's largest Internet Protocol (IP) networks. It is a production proven solution which is currently being used by various telecom operators across the globe. The list includes AT&T, Telecom Egypt, Saudi Telecom and Brazil Telecom, to name a few.

Table-14.9: Direct and Indirect Employment in Telecom Sector of Pakistan Sector 2003-04 2004-05 2005-06 2006-07 Cellular Mobile 130,770 242,026 516,760 743,025 Direct 6,000 9,000 10,000 12,000 Indirect 44,296 84,087 188,754 273,779 Induced 80,474 148,939 318,006 457,246 12,898 Local Loop 1,318 2,303 2,917 2,500 WLL 99,231 106,942 112,943 117,666 LDI 345 462 623 746 Broadabnd 231,150 349,150 441,493 484,363 Payphones 3,254 4,485 4,996 5,500 Equipment vendors/suppliers TOTAL 466,068 705,368 1,079,732 1,366,698 Source: Telecom Engineering Consulting House and PTA estimates

PTA check on Unauthorized Sale of SIMS Pakistan Telecommunication Authority (PTA) has started checking the unauthorized sale of new SIMs for the last few years to ensure that new mobile connections are issued after proper scrutiny of documents. PTA had earlier directed that franchisees must acquire the copy of the Computerized National Identity Card (CNIC) of the customer while issuing mobile telephone numbers. Various teams of PTA Zonal offices at Karachi, Lahore, Muzaffarabad, Peshawar, Quetta and Rawalpindi carried out surprise checks and recommended sealing the franchisees found selling cell phone SIMs without appropriate procedures and records. PTA has taken number of steps to deal with this issue and has directed cellular mobile companies to ensure that new SIMs are sold only through its franchisees or their authorized sale points. PTA and cellular service providers have simultaneously embarked on an awareness raising campaign employing the media to encourage the general public to get their connections transferred in their names if they have not done so already. 240

Quality of Service Survey of Mobile Companies Services of the operators are continuously monitored in order to ensure quality as per the license conditions. Previously, PTA conducted four manual comprehensive Quality of Service (QoS) surveys of Mobile Operators. Fifth QoS survey of mobile operators was conducted by PTA Zonal Offices located at Peshawar, Rawalpindi, Lahore, Karachi and Quetta from September to November 2007, using recently procured state of the art monitoring equipment. The services of five GSM operators i.e. Ufone, Mobilink, Telenor, Warid, and CMPak were checked in selected major and small cities. Service parameters including Network Accessibility, Service Accessibility, Access Delay, Voice Quality and SMS were checked with the automated monitoring tool. 3 G Licensing The Mobile Cellular Policy 2004 provides framework for the award of 3rd Generation (3G) Mobile Licensing/spectrum auction. Similarly, Cabinet Committee on Regulatory Bodies decided that three 3G mobile licenses/spectrum shall be auctioned amongst existing mobile operators in Pakistan. PTA therefore was required to award 3G

Transport and Communications licenses after vacation of the 3G bands by FAB. Consequently Frequency Allocation Board was tasked to vacate frequency spectrum identified for the 3G auction and the Authority prepared Information Memorandum for 3G spectrum auction/licensing The draft IM was circulated to all stake holders including mobile operators for their opinion and input. The industry strongly recommended delay in the licensing of 3G services. The industry is of the view that the mobile data market in Pakistan is insignificant, the base price is very high and the local market is not ready for it. The Authority therefore considering operators (who are the main stake holders) viewpoint, has forwarded industrys concern and its own viewpoint to the government of Pakistan. The industries is worried about the cost of the spectrum and are interested that instead of auction the spectrum should be given to all of the operators at reasonable price. FAB is still working on the vacation of the band and as soon the same is cleared, PTA would issue IM and initiate process for 3G spectrum auctions. III. Electronic Media a) Pakistan Electronic Media Regulatory Authority (PEMRA) PEMRA was setup under an Ordinance in March 2002 to oversee and regulate private broadcast media affairs in the country. For more than five decades since independence, people have had very limited access to information, education and entertainment. The environment was never as conducive for the private media to flourish. It was for the first time that electronic media was opened up to the private sector in 2002. Complete freedom and facilitation served as a catalyst for the unprecedented growth of electronic media in a short span. Today there are nearly 50 private TV channels transmitting information, entertainment and education to all nooks and corners of the country against none, five to six years ago. This has also opened new vistas for investment and employment. Within a few years, Pakistan has developed a modern media network encompassing all mediums such as Satellite TV, Mobile TV, IPTV, FM Radio Stations, MMDS, and Cable networks etc etc. free and widespread access to media has kept large portions of the nation up to-date with national and international developments, and disseminated information and education at an unprecedented level. PEMRA has issued IPTV licences to two mainstream companies making Pakistan the sixth country in the region to adopt such technology. This service is due to be rolled out in the fiscal year 2008-09. Telenor and Mobilink have also attained Mobile Tv licenses from PEMRA. During the last three years, PEMRA has issued 33 new licenses for Satellite TV stations with the total reaching 36 by December 2007. 24 new satellite TV licences have been issued in the year 2007-08. The introduction of Landing Rights has brought foreign channels under the regulatory province of PEMRA. To date, 33 foreign channels have been granted Landing Right permissions, including 8 new channels in the fiscal year 2007-08. PEMRA has maintained its efforts to reach the milestone of having at least one FM radio station in each district of the country. 51 new FM radio licences have been issued so far through an open and transparent bidding process. Total number of FM radio licenses issued to date is now 106, with 14 for Universities teaching Mass Communications. Of these 82 FM stations are already on air. 6 FM licenses have also been granted for the AJK, a first for the area. Radio licenses have been awarded to 3 new stations during July 2007- March 2008. State of the art broadband wireless point-tomultipoint technology is also being encouraged by PEMRA, with a total of 6 MMDS licenses having been issued throughout the country. Cable TV remained the fastest growing sector in the national electronic media area. To date, PEMRA has issued 1874 licenses to cable operators.

241

Pakistan Economic Survey 2007-08 b) Pakistan Television Corporation Limited (PTV) This year, PTV played a significant role in covering and conducting the Elections of 2008 for the National Assembly as well as the Provincial Assemblies. In this regard, PTV had made extra ordinary arrangements by providing a live telecast all over the world, with a marathon transmission that lasted 72 hours. PTV was also efficient in providing the latest positions of the Election 2008 results for the public as soon as they received the information from their correspondents that were placed across the different constituencies of the country. PTV also imported four Drive Away Digital Satellites News Gathering (DSNG) units that are installed in the vans and also handed to the respective centres for live coverage of news, current affairs and sports. Besides this, PTV procured a number of electronic equipment for their TV centres as well as Satellite Video phones and BGAN equipment for efficient news reporting. PTV is now operating five channels in the country, namely: PTV Home; PTV News; PTV Bolan; PTV National; and PTV Global (for UK, USA). For this, it installed Satellite Earth Stations for all five channels, digitalization of two studios at all five TV centres and the provision of one main OB Van each for the five TV centres. c) Pakistan Broadcasting Corporation (PBC) Radio is the fastest, mobile and cheapest electronic media which is capable of reaching the masses far and near. With its varied and wide ranging programmes, PBC is catering to all segments of society. PBC has 31 Broadcasting Houses, 33 medium wave transmitters, 8 short wave transmitters and 21 FM transmitters which transmitted programmes for listeners at home and abroad. Programmes in 21 national and regional languages are broadcast on the medium wave in Home Service and 16 foreign languages in the External Service for foreigners and in national language in the World Service for Pakistanis living abroad. The network of Radio Pakistan covers 98 percent of the population and 80 percent of the total area of the country. 242 Presently 8 FM Stations are broadcasting FM 101 Service. In addition to FM-101 and 93, other FM stations have also been established in 12 important cities of Pakistan which besides National circuit programs radiate regional services emphasizing on community issues and matters related to local populations. PBC News is the biggest source of dissemination of news in the country. Its General News room in Islamabad and attached units are presently putting on air 136 news bulletins daily. PBC is now accessible to audiences around the world through Internet and Asia SAT-3. PBC took an active role in fostering motivation and awareness about the local elections held this year among the general population. Equitable and equal opportunities were provided to all political parties to air their point of view. An amount of Rs. 483,953 million has been allocated in the PSDP of current fiscal year, for the implementation of 10 on-going/ new development projects. An additional amount to the tune of Rs 50 million has been sanctioned by the Planning Commission for establishment of 15 FM Radio Stations. Out of the allocated amount, a sum of Rs 120.988 million was released in November, 2007 for the first quarter, and has been fully utilized. A sum of Rs 76.2 million was released in April 2008 for the second quarter. The following development projects are under way: Completion of 100 KW MW Transmitting Station and Broadcasting house at Turbat. Balancing & Modernization of Equipment Phase-V Commissioning of 100KW SW Transmitter installed at HPT-COMPLEX, Rawat. 8 FM transmitters for the radio coverage of G.T Road between Rawalpindi and Lahore. 10 FM transmitters for coverage of M-1 and M2 motorways. Establishment of 47 FM radio stations

Transport and Communications Establishment of satellite up-linking stations at PBC Islamabad, Lahore, Karachi, Peshawar, and Quetta. & Trace System (EMTTS); Electronic Money Transfer; Computerized Military Pension Payment System; Computerization of Postal Life Insurance; and Computerization of the office of the Chief Controller Stamps (CCS). Pakistan Post is also involved in international postal services and has mail links with all countries except Israel. The mail exchange with these countries takes places under the Universal Union Rules & Regulations. Accounts with foreign postal administrations are settled under these regulations. The net earnings of the Pakistan Post Office in foreign exchange services during July-March 2008 stood at Rs. 81.6 million. Foreign remittances in the form of money orders totalled Rs. 8.22 million during the same period. Furthermore, keeping in view the difficulties faced by the general public for depositing their utility bills, Pakistan Post has started collecting PTCL, Electricity and Gas bills throughout the country while WASA bills are collected in Hyderabad, Faisalabad, Karachi, Lahore, Multan, Quetta and Sialkot. It earned a healthy Rs. 483.47 million from these utility bills collection in the shape of commission for the period of July-March 2008.

Pakistan Post Office Pakistan Post Office is a dedicated state enterprise that provides a wide range of postal services and products. For a vast country like Pakistan, an efficient postal system is essential for cohesiveness of a large population. Its commitment is for serving every one, every day and every where. It provides postal facilities through a network of over 12, 343 post offices strategically placed across the country. In compliance with Government welfare policies, the Pakistan Post Office is providing a variety of services on behalf of both Federal and Provincial Governments and autonomous/corporate entities. Pakistan Post has also taken various measures to streamline the post office system on more modern lines. One major area of improvement is the introduction of information technology, where a number of projects have already been completed and a few more in the pipeline. These projects include: Counter Automation; Express Mail Track

243

TABLE 13.1 TRANSPORT

Railways Freight Tonne (Kilometres Million) 5,709 5,962 6,180 5,938 6,711 5,077 4,607 4,447 4,330 3,612 4,520 4,573 4,820 4,796 5,014 4,971 5,453 4,488 Length of Roads Locomotives (Nos.) 753 752 703 676 678 622 633 611 596 597 610 577 577 592 557 544 544 520 Freight Wagons (Nos.) 34,851 30,369 29,451 29,228 30,117 26,755 25,213 24,275 24,456 23,906 23,893 23,460 23,722 21,812 21,556 20,809 19,638 20,161 Total 170,823 182,709 189,321 196,817 207,645 218,345 229,595 240,885 247,484 248,340 249,972 251,661 252,168 256,070 258,214 259,021 261,821 264,853 Kilometers High Type 86,839 95,374 99,083 104,001 111,307 118,428 126,117 133,462 137,352 138,200 144,652 148,877 153,225 158,543 162,841 167,530 172,891 178,423

Fiscal Year

Route (Kilometres) 8,775 8,775 8,775 8,775 8,775 8,775 8,775 8,775 7,791 7,791 7,791 7,791 7,791 7,791 7,791 7,791 7,791 7,791

1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 (Jul-Mar) 2007-08 P P: Provisional

Number of Passengers carried *(Million) 84.90 73.30 59.00 61.72 67.70 73.65 68.80 64.90 64.90 68.00 68.80 69.00 72.40 75.70 78.18 81.43 83.89 59.74

Freight carried (Million Tonnes) 7.72 7.56 7.77 8.04 8.11 6.85 6.36 5.98 5.45 4.77 5.89 5.90 6.18 6.14 6.41 6.03 6.42 5.20

Low Type 83,984 87,335 90,238 92,816 96,338 99,917 103,478 107,423 110,132 110,140 105,320 102,784 98,943 97,527 95,373 91,491 88,930 86,430 (Contd.)

TABLE 13.1 TRANSPORT

(Contd.) Shipping No. of Dead Vessels Weight Tonnes 28 494,956 28 494,956 29 518,953 27 595,836 15 264,410 17 290,353 15 261,817 15 261,836 15 261,836 15 261,836 14 243,802 14 243,749 13 229,579 14 469,931 14 570,466 15 636,182 15 636,182 Gross Earnings (Million Rs) Pakistan Pakistan Railways National Shipping Corp. 6696 3,865.0 8236 4,063.0 9031 3,137.0 9134 3,302.0 9224 4,311.0 8365 6,962.0 9394 7,761.5 9805 4,597.0 9310 3,707.0 9572 3,483.0 11938 5,458.7 13346 4,555.5 14810 5,405.0 14635 6,881.9 18027 7,860.0 18184 7,924.6 19195 ..

Fiscal Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 (Jul-Mar) 2007-08 .. Not available * Till Jan-08 # Estimated

Cargo Handled at Karachi Port (000 tonnes) Total Imports Exports 18,709 14,714 3,995 20,453 15,267 5,186 22,170 17,256 4,914 22,569 17,610 4,959 23,098 17,526 5,572 23,581 18,719 4,862 23,475 18,362 5,113 22,684 17,114 5,570 24,053 18,318 5,735 23,761 18,149 5,612 25,981 20,063 5,918 26,692 20,330 6,362 25,852 19,609 6,273 27,813 21,732 6,081 28,615 22,100 6,515 32,270 25,573 6,697 30,846 23,329 7,517 20,545 * 15,090 * 5,455 *

14 636,182 13954 # 7,471.0 Source: (i): Ministry of Railways (ii): National Transport Research Center (iii): Karachi Port Trust (iv): Pakistan National Shipping Corporation

TABLE 13.2 PAKISTAN INTERNATIONAL AIRLINES CORPORATION

Fiscal Year Route Kilometres Revenue Kilometres Flown (000) 60,255 66,570 69,377 69,024 72,544 74,288 78,796 73,663 70,697 75,483 76,212 40,158 62,974 63,863 58,146 80,699 87,273 80,302 Revenue Hours Flown 116,616 127,423 132,775 131,122 134,683 138,014 143,686 136,104 129,379 135,136 134,066 65,615 110,136 108,942 96,765 131,262 141,666 141,479 132,416 Revenue Passengers Carried (000) 5,033 5,584 5,780 5,645 5,517 5,399 5,883 5,531 5,086 4,914 5,297 2,729 4,290 4,391 4,796 5,132 5,828 5,732 5,415 Revenue Passengers Kilometres (mln) 8,998 9,925 10,102 10,108 10,382 10,592 11,661 11,147 10,722 10,653 12,056 6,305 10,843 11,276 12,769 13,634 15,260 15,124 13,680 Available Seat Kilometres(mln) 13,401 15,066 15,733 15,159 15,848 16,573 17,528 16,952 16,752 17,839 18,692 9,885 15,778 16,264 18,299 20,348 21,991 22,092 20,313.3 Passenger Load Factor % 67.1 65.9 64.2 66.7 65.5 63.9 66.5 65.8 64.0 59.7 64.5 63.8 68.7 69.3 69.8 67.0 69.4 68.5 67.4 (Contd.)

1990-91 255,336 1991-92 258,558 1992-93 270,536 1993-94 303,321 1994-95 353,221 1995-96 310,205 1996-97 336,230 1997-98 325,744 1998-99 335,348 1999* 332,417 2000* 317,213 2001* 324,815 2001-02 291,428 2002-03 311,152 2003-04 294,082 2004-05 354,664 2005-06 343,525 2006-07 446,570 (Jul-Mar) 2007-08 683,574 80,759 *: PIA's Financial Year is based on Calender Year.

TABLE 13.2 PAKISTAN INTERNATIONAL AIRLINES CORPORATION

Fiscal Year Revenue Tonne Kilometres (Mln) 1,228 1,304 1,333 1,365 1,408 1,402 1,495 1,425 1,313 1,307 1,452 769 1,325 1,389 1,456 1,657 1,818 1,801 Available Tonne Kilometres (Mln) 2,045 2,265 2,352 2,347 2,452 2,526 2,649 2,435 2,403 2,560 2,631 1,438 2,270 2,401 2,528 3,033 3,302 3,369 Revenue Load Factor (%) 60.0 57.6 56.7 58.2 57.4 55.5 56.4 58.5 54.6 51.0 55.2 53.5 58.4 57.8 55.0 54.6 55.1 53.5 Operating Revenue (Million Rupees) 16,849 20,441 21,970 23,631 25,417 27,505 32,732 .. .. 35,492 39,228 21,966 42,844 45,442 51,041 61,308 67,574 70,587 Operating Expenses (Million Ruppes) 16,966 18,861 21,347 22,713 24,199 27,150 32,809 .. .. 36,395 42,033 23,296 39,377 39,125 47,197 62,360 73,074 79,164 PIA Fleet No.of Planes 44 45 45 47 47 47 47 47 45 51 46 45 44 43 42 42 42 39

1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999 * 2000 * 2001 * 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 (Jul-Mar) 2007-08 1,593 3,126 .. Not available *: PIA's Financial Year is based on Calender Year.

51.0 70,480 76,416 42 Source: Pakistan International Airlines Corporation

TABLE 13.3 NUMBER OF MOTOR VEHICLES REGISTERED

Calendar Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Motor Cars Jeeps & Station Wagons 682,636 731,960 819,350 868,159 902,654 923,577 966,747 1,068,116 1,085,969 1,162,876 1,182,307 1,201,738 1,282,371 1,292,888 1,301,406 1,321,590 1,375,419 1,444,190 Motor Cabs/ Taxis 32,304 33,235 41,245 47,897 52,444 53,400 54,501 83,182 83,687 83,844 83,892 93,940 83,954 84,277 84,311 85,619 89,105 93,560 Motor Cycle (2 Wheels) 1,250,749 1,381,136 1,497,017 1,573,370 1,679,259 1,754,737 1,842,531 1,995,421 2,068,730 2,175,488 2,260,772 2,346,056 2,407,466 2,444,567 2,681,066 2,722,645 2,833,540 2,975,217 Motor Cycle Others Total (3 Wheels) 50,862 507,025 2,712,837 52,439 528,878 2,923,913 56,267 558,926 3,179,184 59,510 589,281 3,351,292 62,183 615,497 3,537,866 63,370 642,174 3,669,948 69,756 666,549 3,838,157 76,224 700,315 4,173,945 81,777 724,309 4,303,296 95,345 746,718 4,559,490 99,376 772,279 4,701,596 103,407 797,840 4,843,702 115,919 825,552 5,048,549 122,448 846,017 5,132,037 124,076 860,480 5,395,731 126,004 873,825 5,479,417 131,134 909,416 5,702,598 137,691 954,887 5,987,729 Source: Federal Bureau of Statistics

Buses 84,016 89,094 94,988 98,681 107,440 113,516 114,415 119,365 125,929 150,108 154,401 158,694 162,672 162,957 163,242 165,775 172,530 181,157

Trucks 105,245 107,171 111,391 114,394 118,389 119,174 123,658 131,322 132,895 145,111 148,569 157,027 170,615 178,883 181,150 183,962 191,454 201,027

TABLE 13.4 MOTOR VEHICLES ON ROAD (000 Number)

Mcy/ Scooter 971.80 1,165.50 1,287.30 1,482.00 1,481.90 1,576.00 1,691.40 1,833.70 2,010.00 2,218.90 2,481.10 2,656.20 2,882.50 3,063.00 3,791.00 4,463.80 4,800.00 Motor Car 429.10 465.80 493.70 516.80 538.40 564.50 593.00 731.30 815.70 928.00 1,040.00 1,110.00 1,193.10 1,264.70 1,999.20 1,682.20 1,813.00 Jeep 31.60 35.60 38.00 41.30 43.50 45.50 47.80 16.70 17.00 18.30 43.40 44.40 47.80 51.80 65.70 85.40 92.00 Stn. Wagon 43.60 48.80 52.70 56.00 59.00 62.00 65.00 60.60 73.90 93.80 122.70 126.40 132.40 140.50 140.80 169.10 182.00 Tractor 275.30 353.00 376.60 399.80 424.80 439.80 463.60 489.80 528.40 579.40 630.50 663.20 722.70 778.10 822.30 877.80 927.00 Buses 45.00 51.70 56.40 60.90 64.50 68.20 72.50 84.40 92.80 86.60 96.60 98.30 100.40 102.40 103.60 108.40 121.00 M.Cab Taxi 33.50 40.00 44.50 47.90 51.40 54.10 57.30 68.50 69.80 79.80 96.40 104.10 112.60 120.30 122.10 119.10 126.00 Motor Rck 42.40 46.70 50.50 53.40 58.70 65.60 74.60 56.70 59.90 72.40 80.80 80.90 81.00 81.30 77.80 79.00 67.00 (Contd.)

Year 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 (Jul-Mar) 2007-08 * * Estimated

TABLE 13.4 MOTOR VEHICLES ON ROAD (000 Number)

Year 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 (Jul-Mar) 2007-08 * * : Estimated D.Van 61.40 69.80 74.00 78.20 81.30 84.30 87.60 51.70 55.50 72.40 116.90 120.30 121.30 121.90 143.30 148.90 152.00 Trucks 75.80 84.20 92.00 98.30 104.20 110.30 117.10 121.00 127.40 132.30 145.20 146.70 149.20 151.80 151.80 173.30 185.00 Pickup 30.20 39.50 44.10 47.10 50.50 50.20 56.10 56.40 61.60 68.40 78.30 80.60 84.40 87.60 93.50 104.50 112.00 Ambulance 1.70 2.00 2.30 2.70 3.30 3.70 4.30 1.50 1.70 1.70 4.10 4.30 4.40 4.50 4.50 4.60 5.00 Tankers Oil 4.00 4.30 4.70 5.10 5.60 6.10 6.80 6.80 7.00 7.20 7.60 7.60 7.60 7.70 7.70 7.80 Others Water 0.60 0.70 0.70 0.80 0.90 1.10 1.30 0.70 0.70 0.80 0.90 0.90 0.90 0.90 0.90 0.90 49.50 52.70 73.60 60.70 63.70 66.50 69.70 74.70 78.80 89.00 71.50 71.40 71.30 69.40 60.20 38.50 Total 2,095.50 2,460.00 2,690.40 2,951.60 3,000.20 3,195.80 3,405.30 3,651.70 3,997.20 4,471.00 5,016.80 5,315.00 5,711.20 6,048.30 7,084.50 8,063.60

8.00 1.00 89.00 8,680.00 Source: National Transport Research Center

TABLE 13.5 PRODUCTION AND IMPORTS OF MOTOR VEHICLES

Fiscal Year/ Type of Vehicles PRODUCTION (Nos.) Trucks Buses L.C.Vs 4x4 Vehicles Tractors Motor Cycle/Scooters/ Rickshaw Cars IMPORTS (Nos.) Cars Jeeps Motor Rickshaw Station Wagon Buses Including Trolly Buses Lorries/Trucks Including Ambulance special Lorries, Trucks & Vans Motor Cycle Scooter Motorised Cycles Passengers M. Cars (n.S) Road Tractors for Trailers Tractor Agricultural Tractor Caterpiller Tractor Heavy Duty for const. Tractor Roads Tractor (NES) Car's Chassis with Engine Bus etc. Chassis Spl. Truck etc. Chassis Rickshaw, Chassis with Engine Pickup Delivery Van Chassis Un-Mounted Motor Vehicles No Bicycle Motor Vehicles for Goods Passenger Vehicles Public No Tractor Chassis with Engine .. not available

1992-93 2,222 1,177 11,478 1,324 17,127 95,793 26,945 100,188 1,484 2,773 746 2,247 4,743 535 119,970 308 426 212 10 .. .. 115 .. 78 11 102 .. .. 17,931 22,343 457 468 134 17 ..

1993-94 1,394 427 5,128 816 14,907 63,958 19,514 38,216 343 548 251 893 2,673 461 86,349 3 26 88 27 952 3 14 .. 115 1 24 26 .. 6,099 2,823 .. 928 57 15 ..

1994-95 703 312 5,154 1,310 17,144 60,960 20,955 31,743 1,535 250 326 267 882 219 62,100 40 234 224 4 10,084 2 2 .. 80 .. 48 .. .. 5,751 1,940 127 9,916 43 8 480

1995-96 1996-97 3,030 438 6,834 2,274 16,208 121,809 31,079 35,100 959 .. 265 344 1,948 102 115,235 .. 1,305 919 193 6,805 1 .. .. 323 .. .. .. 5,506 1,831 1 8,303 151 27 .. 2,916 862 9,817 792 10,417 117,188 33,462 31,817 542 .. 173 396 2,101 198 135,220 .. 990 338 340 2,020 6 14 8 179 28 12 .. .. 5,511 4,851 194 3,618 22 22 ..

1997-98 1,850 425 4,886 651 14,144 96,991 33,683 36,851 1 900 143 498 1,034 99 90,435 7 925 318 38 1,086 .. 28 .. 113 2 .. .. .. 6,314 5,218 9 7,844 18 4 ..

1998-99 1,131 1,220 8,079 622 26,885 93,167 38,682 46,363 165 97 603 443 152 79,738 8 44 162 37 3,281 1 .. .. 436 .. .. .. .. 3,734 3,149 .. 29,218 146 61 ..

1999-00 977 1,508 6,656 380 35,038 94,881 32,461 34,988 48 8 71 917 500 109 85,592 145 3 161 7 2,469 .. 5 3 1 10 277 .. .. 3,672 3,379 .. 22,211 160 183 ..

2000-01 952 1,337 6,965 459 32,533 117,858 39,573 62,187 338 20 115 588 545 138 15,771 99 36 55

13 25,964 15 4 57 4 17 2,703 1,573 62 14,505 .. 62 .. (Contd.)

TABLE 13.5 PRODUCTION AND IMPORTS OF MOTOR VEHICLES

July - March Fiscal Year/ Type of Vehicles 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2006-07 2007-08 P PRODUCTION (Nos.) Trucks 1,141 1,950 2,022 3,204 4,518 4,410 3,266 3,317 Buses 1,099 1,340 1,380 1,762 627 993 627 828 L.C.Vs 8,491 12,174 14,089 23,613 29,581 24,489 13,436 15,652 Tractors 24,331 76,501 36,103 43,746 49,439 54,610 39,568 37,514 Motor Cycle 133,334 176,591 327,446 476,333 752,603 839,224 609,528 780,591 Cars 40,601 62,893 99,263 126,817 163,114 173,271 128,145 123,107 IMPORTS (Nos.) Cars 40,079 60,554 88,130 66,338 36,563 202,785 * 153,739 333,887 Jeeps 666 6,010 11,435 5,409 2,108 1,938 * 1,387 201 Motor Rickshaw 101 3 3 15 1,727 1,407 3,870 Station Wagon 165 440 154 37 284 2,857 * 2,802 348 Buses Including Trolly Buses 700 1,230 2,429 411 2,104 652 449 185 Lorries/Trucks Including Ambulance 728 14,036 2,883 2,616 13,463 16,610 13,171 7,499 special Lorries, Trucks & Vans 157 54 95 1,544 551 573 443 312 Motor Cycle 111,711 143,952 127,861 189,721 167,626 164,078 * 116,132 184,868 Scooter .. .. .. .. .. .. .. .. Motorised Cycles 509 675 4,143 9,472 12,467 7,173 11,517 161 194 243 244 1,587 1,174 897 579 Passengers M. Cars (n.S) Road Tractors for Trailers 18 122 124 117 498 997 631 1,453 Tractor Agricultural 220 14,000 11,420 6,543 20,769 30,588 22,956 14,628 Tractor Caterpiller 44 1 30 91 12 1 1 1 Tractor Heavy Duty for const. 4 120 219 563 632 845 501 630 Tractor Roads 15,174 1,115 2,104 1,646 2,284 904 713 1,074 Tractor (NES) 115 496 736 2,167 3,378 * 7,213 4,204 13,816 Car's Chassis with Engine 1 .. .. .. .. 6 6 .. Bus etc. Chassis 60 46 164 18 7 24 10 142 Spl. Truck etc. Chassis .. .. .. .. 38 48 16 339 Rickshaw, Chassis with .. Engine 36 10 2 144 315 * 421 * 421 187 Pickup 3,600 5,162 6,857 5,394 23,303 21,898 14,734 16,703 Delivery Van 2,120 471 26 178 2,586 1,583 1,035 7,035 Chassis Un-Mounted 168 .. .. .. .. .. .. .. Motor Vehicles No Bicycle 20,240 37,836 39,894 61,187 52,022 28,509 23,757 23,630 Motor Vehicles for Goods 2 234 511 269 3,844 297 292 20 Passenger Vehicles Public No 6 473 721 1,519 5,228 2,123 1,405 763 Tractor Chassis with Engine .. not available P: Provisional * : Data has been revised according to new codification and introduction, shifting and deleting of new HS code for 2005-06 onwards

TABLE 13.6 POST AND TELECOMMUNICATIONS

Fiscal Year No of Post Offices Urban Rural Total 1,867 11,546 13,413 1,909 11,471 13,380 1,983 11,213 13,196 1,970 11,315 13,285 2,026 11,294 13,320 2,092 11,327 13,419 2,024 11,192 13,216 2,044 11,250 13,294 2,103 10,751 12,854 2,103 10,751 12,854 2,302 9,932 12,234 1,983 10,284 12,267 1,808 10,446 12,254 2,267 9,840 12,107 1,831 10,499 12,330 1,845 10,494 12,339 1,849 10,494 12,343 No of TeleTelephones Internet No.of Internet graph Offices (000 Nos.) Connections Cities Urban Rural Total (Million) connected 195 302 497 1188 .. 299 210 509 1461 .. 320 210 530 1548 .. 327 85 412 1801 .. 330 86 416 2126 .. 319 104 423 2376 .. 340 93 433 2558 .. 356 92 448 2756 0.01 308 93 401 2861 0.20 293 91 384 3124 0.50 293 91 384 3340 0.80 258 104 362 3656 1.00 239 87 326 4940 1.60 1,350 215 73 288 4460 2.00 1,898 215 77 292 5191 2.10 2,210 .. .. .. 5128 2.40 2,389 4806 3.50 2,419 .. .. .. .. .. .. 5,200 4,675 Source: No of PCO * 3,861 4,676 5,618 6,422 4,600 9,410 10,040 10,071 10,107 10,400 66,968 97,751 139,493 180,901 217,597 353,194 387,490 Mobile Phones .. .. .. .. .. 68,038 135,027 196,096 265,614 306,463 742,606 1,698,536 2,404,400 5,022,908 12,771,203 34,506,557 63,160,874

1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Jul-Mar 2006-07 1,845 10,494 12,339 2007-08 1,849 10,494 12,343 .. Not Available * Included Cardpay Phones Note : Telegraph offices closed in 2006

2.50 2,444 353,194 55,600,211 3.50 3,008 387,490 82,150,000 (i): Pakistan Post Office (ii): Pakistan Telecommunications Company Ltd (iii): Pakistan Telecommunication Authority