"On the ground, of course, the reality is different and first-time visitors to Pakistan are almost always surprised by the country's visible prosperity. There is far less poverty on show in Pakistan than in India, fewer beggars, and much less desperation. In many ways the infrastructure of Pakistan is much more advanced: there are better roads and airports, and more reliable electricity. Middle-class Pakistani houses are often bigger and better appointed than their equivalents in India. Moreover, the Pakistani economy is undergoing a construction and consumer boom similar to India's, with growth rates of 7%, and what is currently the fastest-rising stock market in Asia. You can see the effects everywhere: in new shopping centers and restaurant complexes, in the hoardings for the latest laptops and iPods, in the cranes and building sites, in the endless stores selling mobile phones: in 2003 the country had fewer than three million cellphone users; today there are almost 50 million."
More recently, Alistair Scrutton filed a Reuters report about Pakistan's infrastructure, particularly its 367 Km long M2 motorway that connects Lahore with Islamabad:
"Indeed, for sheer spotlessness, efficiency and emptiness there is nothing like the M2 in the rest of South Asia.
It puts paid to what's on offer in Pakistan's traditional foe and emerging economic giant India, where village culture stubbornly refuses to cede to even the most modern motorways, making them battlegrounds of rickshaws, lorries and cows.
There are many things in Pakistan that don't get into the news. Daily life, for one. Pakistani hospitality to strangers, foreigners like myself included, is another. The M2 is another sign that all is not what it appears in Pakistan, that much lies hidden behind the bad news.
On a recent M2 trip, my driver whizzed along but kept his speedometer firmly placed on the speed limit. Here in this South Asian Alice's Wonderland, the special highway police are considered incorruptible. The motorway is so empty one wonders if it really cuts through one of the region's most populated regions.
"130, OK, but 131 is a fine," said the driver, Noshad Khan. "The police have cameras," he added, almost proudly. His hand waved around in the car, clenched in the form of a gun.
On one of my first trips to Pakistan. I arrived at the border having just negotiated a one-lane country road in India with cows, rickshaws and donkey-driven carts.
I toted my luggage over to the Pakistan side, and within a short time my Pakistani taxi purred along the tarmac. The driver proudly showed off his English and played U.S. rock on FM radio. The announcer even had an American accent. Pakistan, for a moment, receded, and my M2 trip began."
Here are another western tourist's impressions of M2 from nomadic-one.com:
A strange relief to get to drive 3 lane asphalt in such serene quietness! It was unreal, we had to pinch our arm if this was really happening. Is this Pakistan? We decided to spend the night at the 3rd big service area with restaurant, gas station, police and clean toilets. It was strange to see there was no trace of locals selling stuff on the curbs – something which is really normal in Pakistan. Probably these place are off limits to the small business men.
Going to India – something we have long looked out for. We’ve heard a lot about India from other travellers – good and bad experiences. One thing’s for sure – India must have a LOT of people, each and every traveller from India has mentioned this explicitly. With Pakistan and Nepal (1998) as context we’re curious and somewhat anxious how we will experience India. We’re not crowd maniacs and both appreciate a ‘bit of air’ between people. Anyhow India happened quicker than we expected – we left Islamabad on the 25th, the next day we already sat in the garden of Ms Bandari’s Guesthouse. The superb M2 motorway with overnight parking and the road to the Indian border was uneventful. We drove the canal bank road through Lahore a long drive on a straight road. But look carefully to find this road separated by a canal – it’s sign posted rather miniscule by “Wagah border”.
"The road to Amritsar was like wading upstream in extreme suicidal traffic – the independence day ceremony must be something special. It must be totally worth risking your life for this. Naturally we had our usual ‘end of the day – near dark – took the wrong turn in mega dense traffic’ exercise. Just to make our arrival in Amritsar a little bit more special. We arrived in the dark - asking directions many times. This way we came a few 100 meters closer to Ms Bandari’s guesthouse each time we asked. We nearly seen the golden temple by truck. Ain’t that a relaxed truck ride in the dark! Cool!
And yes, even with GPS coordinates of the place it’s still a nice puzzle to solve after a border crossing day like this."
According to BMI research, Pakistan has experienced a high level of activity in its infrastructure sector in 2008. This has mostly been focused on the power sector and the road network. In addition, construction of housing has been a top priority. However, the global downturn is hitting Pakistan hard, and the BMI's 2009 Annual Infrastructure Report for Pakistan is forecasting the construction industry to contract by 6.31% y-o-y in 2009. The power sector has been the major focus in Pakistan's infrastructure sector in 2008. Years of underinvestment in electricity generating and distributing infrastructure came to a head in 2008, when there was not enough supply to meet demand, further exacerbated by lack of rainfall almost knocking out Pakistan's large hydropower sector. It is currently estimated that there is a 3,300MW shortfall in capacity at peak hours; as a result, load shedding has been a common practice. In an attempt to combat the shortages, a US$30bn investment plan has been announced, which has seen the development of a number of projects. Construction started in 2008 on the 969MW Neelum-Jhelum power plant, which is being built by a consortium comprising Chinese Gezhouba Group Company and China Machinery Export Corporation. Construction of the Diamer Basha Dam, which will have a capacity of 4,500MW once completed, is expected to start in 2009. Within the transport sector, the roads have benefited from the majority of attention in 2008. This has been the result of the National Highways Authority's plans to invest US$5.36bn into the sector. The plans benefited from a US$900mn multi-tranche loan from the Asian Development Bank. The main project being pursued is the National Trade Corridor, envisaged as a main thoroughfare connecting the north of the country to the ports in the south; it is estimated to cost US$6.58bn. Construction of housing has been a major feature in 2008. Residential construction is being carried out under the prime minister's 'mega housing scheme' which involves the construction of one million low cost houses per year. Pakistan's economy has been hit hard by the global economic downturn and BMI's is forecasting real GDP growth of 2.5% y-o-y in 2009, down from 6.8% in 2007. In November 2008, the country received a US$7.6bn 23-month standby loan from the International Monetary Fund to "support the country's economic stabilization program". The move might help boost investor confidence in the short term; however, it may put off investors looking at long-term infrastructure investments.
The 2008 World Bank assessment says that Pakistan is one of the most water stressed countries in the world, and water resources are depleting rapidly. With its water infrastructure in poor condition, the report argues that Pakistan has to invest around Rs60 billion (US$1 billion) per year in reservoirs and related infrastructure over the next five years. In the energy sector, the country will face severe power shortages of around 6,000 megawatts by 2010. Similarly, inefficiencies in the transport sector cost the economy between 4-5 percent of GDP each year.
To overcome these constraints, the Government of Pakistan is tripling its annual infrastructure investment from an average of Rs150 billion (US$2.5 billion) to Rs440 billion (US$7.3 billion). However, the bank report points out that mega projects in the past have experienced frequent delays and cost overruns, illustrating a lack of capacity in the industry to plan, program, and execute large projects.
Many infrastructure projects in Pakistan, including power plants and motorways, are being built and financed on build-operate-transfer or BOT basis. Built on the BOT basis, the M2 motorway has already paid for itself and now generates revenue for Pakistan government.
Here is a video with pictures of Pakistan's extensive roads network:
Here is a slide show of some of the infrastructure development projects underway in Pakistan:
Related Links:
Foreign Visitors to Pakistan Pleasantly Surprised
Digital Maps of Pakistan
Pakistan's daily carnage
Pakistan's Road Network
Life Goes On in Pakistan
Water Scarcity in Pakistan
Food, Clothing and Shelter in India, Pakistan
Urbanization in Pakistan Highest in South Asia
A Review of Global Road Accident Fatalities
Pakistan Leads South Asia in Clean Energy
Karachi Fashion Week
Is Pakistan Too Big to Fail?
Karachi Fashion Week Goes Bolder
More Pictures From Karachi Fashion Week 2009
Pakistan's Foreign Visitors Pleasantly Surprised
Start-ups Drive a Boom in Pakistan
Pakistan Conducting Research in Antarctica
Pakistan's Multi-billion Dollar IT Industry
Pakistan's Telecom Boom
Pakistan's Infrastructure Assessment by World Bank
ITU Internet Data
Eleven Days in Karachi
Pakistani Entrepreneurs in Silicon Valley
Musharraf's Economic Legacy
Infrastructure and Real Estate Development in Pakistan
Pakistan's International Rankings
Assessing Pakistan Army Capabilities
Pakistan is not Falling
Jinnah's Pakistan Booms Amidst Doom and Gloom
15 comments:
Here's an excerpt from Pakistan's consumer electronics market report:
Pakistan’s consumer electronics market, defined as the addressable market for computing devices, mobile handsets and AV products, is projected to be worth around US$1.6bn in 2010. Underlying demand will grow at a CAGR of about 7%, but spending will be restrained by a sizable grey market of smuggled or illegally assembled products.
The market’s considerable potential is currently depressed by a large grey market, poor IP protection, an unstable economic and security situation and weak distribution channels. Growth will be driven, however, by improved ICT infrastructure, and more credit availability. Reform of often high national and provincial taxes and tariffs on products ranging from computers to prepaid mobile cards would also boost the market.
Computer Computers accounted for around 18% of Pakistan’s consumer electronics spending in 2009. BMI forecasts Pakistan’s domestic market computer sales (including notebooks and accessories) of US$283mn in 2010, up from US$264mn in 2009. Computer hardware CAGR for the 2010- 2014 period will be around 7%. The abolition in September 2009 of a minimum sales tax on imported computers should boost the market.
AV AV devices accounted for around 40% of Pakistan’s consumer electronics spending in 2008. Pakistan’s domestic AV device market is projected at US$632mn in 2010. The market is expected to grow at a CAGR of 11% between 2010-2014, to a value of US$946mn in 2014. TV sets remain the core product in this category, but the growing availability of smuggled colour televisions is a market inhibitor.
Mobile Handsets Pakistan’s market handset sales are expected to grow at a CAGR of 1% to 18.8mn units in 2014, as mobile subscriber penetration reaches 91%. Revenue growth will be slower due to lower average selling prices (ASPs) of mobile handsets, with most handsets sold at a under US$40 price-point. Another issue is a declining growth rate of mobile subscriber penetration, which is now above 60%.
As per Economic Survey of Pakistan, roads have become the most important segment of transport sector in Pakistan. In 1947, reliance on roads was only 8%, however, currently, it accounts for 92% of national passenger traffic and 96% of freight. However, neglect of other modes of transportation (particularly Railways) in favor of improvement of the road infrastructure has been a prevalent problem in the country s transportation sector.
In the year 1996-97, Pakistan Railway had 10.45% share of passenger traffic and 5.17% of freight traffic, which has dropped to 9. 95% and 4. 72% respectively by the year 2006-07, according to Economic Survey of Pakistan.
Primarily on account of increasing preference for road transport by passengers as well as goods forwarders over rail transport and owing to a diversion of already scarce resources towards the expansion of the road network, the performance and condition of Pakistan Railways has declined and its share of inland traffic (if compared with the early 70s) has reduced from 41% to 10% for passenger and 73% to 4% for freight traffic.
The above qualitative and quantitative analysis reveals that Pakistan Railways has lost its significance and it is no more an attractive mode of transport. The railwaymen have to realise this fact and forget Railways has absolute benefits over road transport and that the Railways is the biggest mode of transport. It is a requirement today that rail transport is restricted to and enhanced on the corridors where long haul and mass scale traffic both for passengers and freights is available, and where there is sufficient revenue generation to bear the O&M (Operation & Maintenance) cost.
http://finance.kalpoint.com/economic-updates/exclusive-articles/railways-still-in-a-quagmire.html
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The government, in close collaboration with the World Bank, is preparing a detailed road map for revitalizing the cash starved Pakistan Railways that requires a multi-billion dollar injection over the medium to long term to ensure a complete turnaround, official documents available with The News disclosed on Sunday.
The government had constituted a Core Team, as specified by the Planning Commission, which was assigned to formulate a Pakistan Railways Issue Note (PRIN) based on a rapid governance analysis. According to the PRIN executive summary Pakistan Railways (PR) has been facing serious crisis since 2007-08 as its passenger traffic reduced by 16 percent and freight traffic (on a tonne-kilometer basis) by 70 percent. Revenues of PR has fallen by 6 percent while working expense increased by 80 percent with labor related costs and pensions being 120 percent of revenue in 2010-11.
Under the current organization structure and financial arrangement, the executive summary states, it would be very difficult for PR to even return to break-even on working expenses without radical surgery. In the absence of substantial reforms, PR will almost certainly suffer a continuing decline, slowly but steadily becoming almost irrelevant to the general economy of the country.
http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=10601&Cat=13
Daily Times report on Pakistan joining international railway org:
As part of its endeavor to expand rail network to Europe, Central Asian Republics (CARs) and Middle East, Pakistan is set to become member of Intergovernmental Organization for International Carriage by Rail (OTIF) soon, said Minister for Railways Haji Ghulam Ahmed Bilour on Sunday.
Talking to media, the minister said the federal cabinet had already given its consent for the membership.
Set up in 1985, OTIF was principally aimed to develop uniform law applicable to the international carriage of passengers and freight through traffic by rail.
Currently, 46 states are OTIF members. The European Union acceded to this uniform law, COTIF in July 2011.
The OTIF membership would help Pakistan to have contracts of carriage for the international carriage of passengers and goods, dangerous goods, use of vehicles, use of railway infrastructure and validation of technical standards and adoption of uniform technical prescriptions for railway material.
In this connection, a capacity building and awareness workshop was held here in which the top management of OTIF and ECO briefed the representatives of Ministries of Railways, Communication, Commerce, Finance and other stakeholders about the potentials of the membership and how to deal with the future matters.
Bilour said there was no bottleneck in getting the OTIF membership. He said now the Railways Ministry would move a summary to the Prime Minister for final approval and once the process is finalised, Pakistan would be in the position to expand its international rail operations to other regions.
The railways minister said the things were moving ahead smoothly and the membership process would be completed within two to three months.
He said as India was not yet a member of OTIF, Pakistan would also have a competitive edge to spread its trade route to the region that has vast potential for international trade.
The ECO countries route to Istanbul-Islamabad via Tehran is operating successfully, however some issues were identified while heading forward to other regions those would be resolved once the country becomes part of OTIF family, Bilour added.
He said currently eight trains were plying between Pakistan, Iran and Turkey having transit time of 11 days, but the service faced issues including lack of central monitoring mechanism to watch the running of trains, error in the preparation of railway receipts and mechanism to address the dispute between consignee, consignor and carrier. Bilour told media that the government was also working on new tracks including Peshawar–Jalalabad (140 km) and Chaman–Kandhar (107 km).
Bilour said the Railways Ministry was in touch with Islamic Development Bank involving the ECO Secretariat to rehabilitate Quetta-Taftan link to curtail transit time.
He said Pakistan having its border links with Afghanistan, Iran, China and India has the shortest link to Arabian Sea, as besides Karachi, Bin Qasim and Gawadar sea ports help increase maritime activity and bulk transportation to landlocked countries.The minister said the WTO regime, reconstruction of Afghanistan and rising trade links with CAR are compelling the needs to develop international corridors.
He said the government was now encouraging the private sector to invest in railways under public-private partnership mode in conformity with the assets especially shortage of locomotives, though efforts are also underway to restructure and corporatise the railways.
http://www.dailytimes.com.pk/default.asp?page=2011\12\12\story_12-12-2011_pg7_17
Here's an excerpt from "Back to Pakistan" by Leslie Noyes Mass talking about the extensive telecom coverage in remote Northern areas of Pakistan:
"The Eagles Nest is aptly named: it perches on top of a ridge amid rocky scree and jagged peaks. Behind us are 24000-feet snowcapped summits, soaring into the sky. Below, the valley where we have spent the past few days is recognizable by its row of cell phone towers and the Hunza River. I have been astonished that, remote as we are in Hunza, first-class cell phone and Internet connections are available 24/7. We are as close to civilization as the briefest click and as far away the loosest stone on that crumbling highway north or south."
http://books.google.com/books?id=_BtWtuLlDXoC&pg=PA44&lpg=PA44&dq=inquiry+based+learning+pakistan&source=bl&ots=6DRcWG5-r7&sig=7_vsfOS2Xet_zFFmqRmduY-hR24&hl=en&sa=X&ei=6rEHT93tEeqFiAKO_aWyCQ&sqi=2&ved=0CFEQ6AEwBQ#v=onepage&q=cell%20towers&f=false
The highway Mass is referring to is the world's highest called Karakoram Highway at an altitude of over 15000 feet. It's currently being repaired and expanded with Chinese help. Talking about it, she writes:
"I wonder what a wide, asphalt highway would do to this area--bring more tourists and trade and change forever the lives of the people in the distant villages hidden among the rocks, I imagine."
Here's a 2011 Dawn Op Ed on cement industry by Pakistan Cement Industry Association leader Tariq Saigol:
While the private sector performed magnificently whenever provided with an enabling environment, the response of the present government remains mired in confusion and inertia. Installed capacity was a paltry nine million tons in 1990, much of it being grossly inefficient as it was based on the outmoded wet process technology. As demand rose, the industry responded by launching a massive expansion programme. Over time, the installed capacity rose to nearly 44 million tons, a magnificent feat by any standards and a credit to the entrepreneurial spirit of the private sector.
However a number of adverse developments from 2007 onwards have brought the GDP growth to some two per cent. It is being reported by the media that the revised allocation after the latest cut, is a measly Rs180 billion. High inflation combined with slump in real estate and increase in the cost of production due to weakness of the dollar, resulting in a spike in coal prices, electricity and freight rates and accounting for 70 per cent of the cost, has adversely affected consumption while production cost soars, retarding construction activity in the private sector.
The current economic environment including low public spending has had disastrous consequences for the cement sector.
Local sales during the first half of the current fiscal year have witnessed an eight per cent year on year drop to around 10.1 million tons. Simultaneously, exports fell from 5.6 million tons to 4.6 million tons. The bad news does not end here. On top of low volumes, the average cement FOB prices fell to $48 per ton during the corresponding period— a level low enough to hardly break even.
Consequently cement sales through the sea route alone declined by about one third. Cement sales to India were also hard hit on account of non renewal of BIS certification (a quality control licence). Burdened with high energy and freight costs as well, the manufactures are desperate for some government support.
But no support is forthcoming. One would expect the government’s economic planners to appreciate the tremendous odds against which the industry is battling. If care of the cement industry is in short supply, then some thought may be given to the enormous exposure of the banks which have provided financing to the tune of $1.5 billion to the sector during 2003-2008.
http://www.dawn.com/2011/03/14/opportunities-missed.html
Here's a blogger' view Pakistan's cement industry:
Cement is one of the most important industries of Pakistan. Limestone and gypsum are the main raw materials for manufacturing of cement and they are present in abundance in Pakistan along with good supply of Natural gas. This great potential makes the country capable of producing cement not only for local use but also for export as well. Pakistan cement industry has exporting cement to the neighbouring countries like U.A.E, Afghanistan, India, Iraq and Russia.
At present there are 22 cement plants are operating in Pakistan with the production of approximately 9.403 million tonnes. Out of these 22 cement plants, 17 are private and 5 are publicr. 11 new plants are also in planning stage and the capacity of these plants is estimated around 12.988 million tonnes. The industry has achieved a growth of 32% with the domestic demand increasing by around 24.95% and the exports by nearly 111.86% according to the financial year end June 30, 2007 ratings. Recently the country has been able to export to some of the African countries as well.
Cement industry is divided into two main regions; the northern and the southern region. Northern region is producing 35.18 million tonnes and southern region is producing 8.89 million tonnes of cement per year.
Per capita consumption of cement is an indicator of rate with which any country is developing. Unfortunately per capita consumption of cement in Pakistan is less if we compare it with other developing countries. It is about 131 kg per person annually; whereas world average is about 270 kg. This less consumption is due to the negligence given to the construction sector. However in last few years consumption of cement showed some rise due to increased commercial activities, infrastructural development and increasing demand of constructing houses.
Local demand for the year 2007-2008 was 20 million tonnes. Pakistan has started exporting cement few years back and has earned repute as a premium quality cement producer in the global market in this short period. Pakistan exported around 7.716 million tonnes of cement in 2007-2008 and earned a foreign exchange of 459 million dollars. There is surely a great potential of growth in this industry in Pakistan.
http://pakistan360degrees.contentcreatorz.com/cement-industry-of-pakistan/
Here are highlights of a presentation on Pakistan's cement manufacturing sector:
Beginning with just 500,000 tons in 1947, Pakistan's cement production almost tripled from 16 million tons in 2000 to 44 million tons in 2010.
At 145 Kg per person, Pakistan's cement consumption is up from 75 Kg in 2003, but still about half of the world per capita consumption average of 270 Kg.
http://www.slideshare.net/msaadafridi/cement-industry-of-pakistan
Pakistan launches luxury train for business travelers, reports Telegraph newspaper:
The luxury service – complete with flatscreen TVs, wifi and lavatories that would put some British trains to shame – was launched today in an effort to turn around the dire fortunes of Pakistan's railways, and restore it to its former colonial glory.
More than that, the story of the railway's decline mirrors that of the country itself, and the Business Express, with its mix of public and private enterprise, is being championed as a new model that could revive Pakistan's moribund state sector.
Waiters in waistcoats and bow ties served afternoon tea as passengers boarded for the 800-mile, 18-hour journey.
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Pakistan inherited a rail network stretching more than 5000 miles at independence in 1947.
But years of corruption and mismanagement has seen the state-owned business taken to the brink of collapse.
Executives say its fleet of 146 locomotives is 500 short of what it needs.
The resulting delays and cancellations have seen a once popular railway marginalised; used by only those that cannot afford travelling by air or road.
This year, the business is expected to lose more than £200m.
Arif Azim, chairman of Pakistan Railways, said he wanted to turn back the clock to a time when the railways were both reliable and elegant.
"Our aim right now is to offer a service in the best traditions of the line – whether it was in the British time or after independence," he said.
Construction on the line began in 1858 when Sir Henry Edward Frere, the commissioner of Sind, realised Karachi would form an ideal port.
The first stretch opened in 1861, running 100 miles inland before connecting with steamers on the Indus.
John Brunton, the chief engineer, described in his memoir the challenges of buying off hostile princes and the day a rabid wolf ran through his camp outside Karachi.
"In India a record is kept of all fatalities arising from attacks of wild beasts, snakes etc – and on this occasion the return gave 12 men bitten, of whom 10 died, and a large number of cattle," he wrote.
"The brute was hunted down and killed by the natives, the day after our interview with him."
Pakistan has different troubles today.
A bomb blast closed the railway last year not far from the spot where those rabid wolves once roamed and the Business Express carries armed guards.
It may not be quite the Orient Express, but the daily sleeper with running water, a dinner service, and pillows for the bunks are a vast improvement on the squalid, broken-down carriages that usually make the stop-start journey.
The service is provided by a private company in a deal that gives it 14% of the £35 single ticket price.
Javed Salim Qureshi, chairman of Four Brothers, the private partner: "Pakistan has had a disaster on the railways. This is a new departure.
"I just hope it gets there on time."
A trial run a week earlier fell eight hours behind schedule even before leaving Lahore after a carriage derailed.
Some of the two hundred or so passengers aboard the maiden trip said they were impressed by the facilities but would reserve judgment until their arrival in Karachi.
Khurram Ali, a financial analyst, said he was surprised by the first-world standards.
"It's cheaper than flying and this new service seems really good," he said, as the lush farmland of Punjab flashed past the window at 70mph.
"But then again we all know how bad the delays have been so ask me again what I think tomorrow morning."
http://www.telegraph.co.uk/news/9059475/All-aboard-Pakistan-turns-back-the-clock-with-luxury-train-travel.html
PIA, Pakistan's national airline, is a victim of corruption and incompetence from political patronage. Here's a Reuters' report on it:
PIA (PIAa.KA), like Pakistan, always seems to be on the brink of disaster. But now that seems closer than ever for the national flag carrier, once a source of pride for the country.
The airline is haemorrhaging hundreds of millions of dollars a year while being pummelled by competition from sleek Gulf giants like Emirates EMIRA.UL, Etihad and Qatar Airways.
A quarter of its 40 aircraft are grounded because the airline can't find enough money to buy spare parts. Flights are regularly cancelled and engineers say they are having to cannibalise some planes to keep others flying.
"The situation has worsened to the extent of rendering this airline almost financially unviable," said the State Bank of Pakistan in a report on the state of the economy.
In many ways the airline mirrors the way Pakistan -- a strategic U.S. ally often described as a failing state -- is run.
The same inefficiency, nepotism and corruption that critics say have prevented the government from tackling a Taliban insurgency, crippling power cuts, ethnic violence and widespread poverty also threaten to bring down the airline.
PIA lost 19.29 billion rupees in the first nine months of 2011, almost double the losses in the same period in 2010.
The airline, like the Pakistani economy, has relied on bailouts to stay in the air, and is negotiating with the state for another rescue package.
"Just like PIA has the potential to do well, Pakistan's economy does too. But both haven't because of mismanagement. In the end that is the story -- mismanagement," Salman Shah, a former Pakistani finance minister, told Reuters.
PIA officials were not available for comment on the challenges facing the airline despite repeated requests.
HUGE WORKFORCE WEIGHS DOWN AIRLINE
Over the years, critics say, governments have manipulated state corporations like PIA for political and financial gain, giving jobs to so many supporters that the size of the workforce has become unsustainable in the face of mounting losses.
"We don't have people in the right places in typical Pakistani fashion. It's about who you know not what you can do," said a PIA pilot, who like other employees asked not to be identified for fear of being fired.
Today, PIA has a staggering employee to aircraft ratio of more than 450, more than twice as much as some competitors. In the first nine months of 2011, employee expenses drained 16 percent of turnover.
"Politically motivated inductions have been the major cause of the significant increase in human resource burden in this organisation," said the central bank.
"It cannot be corrected without taking drastic steps for rightsizing and increasing operational efficiency."
That is unlikely in a country where political expediency and interests often undermine efforts to make everything from governments to corporations successful.
Frustrations with those realities are palpable at PIA.
http://www.reuters.com/article/2012/02/14/uk-pakistan-airline-idUSLNE81D02820120214
Here are excerpts of a report by Daily Mail on Indian trade delegation's Pakistan visit:
....When Indian journalists and members of a business delegation flying from Lahore to Karachi on board a PIA flight asked the flight attendant for a vegetarian meal, they were told that there was only non-vegetarian fare in the packet.
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However, a smart attendant pointed out that while one of the sandwiches in the food packet was 'chicken', the other was 'cheese'. 'So you can have the cheese sandwich,' was his solution.
Of course, he overlooked the fact that two were part of the same dish and their proximity far too disturbing for the vegetarian mindset. Similarly, on the early morning PIA flight from Karachi to Islamabad the air hostesses were quite apologetic about not having any vegetarian breakfast on board.
While the world over, commercial airlines factor in dietary preferences, it appears PIA still has to move up the learning curve.
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Pakistan deserves credit for building an excellent 8-lane expressway from Islamabad to its cultural capital Lahore.
With a permissible speed limit of 120 km an hour, cars cruise through the 370 km distance in four hours.
There is a 15 km stretch through the salt range where vehicles have to slow down as there is danger of disturbing the rocks due to vibrations.
Speed cameras placed along the expressway ensure that motorists do no exceed the maximum speed limit.
Interestingly, there are prominently displayed signs on the highway which warn drivers that there is a 'speed camera ahead' which tends to maintain discipline.
This is in sharp contrast to the approach of Delhi police, who believe in hiding behind bushes with their speed cameras to catch motorists unaware as though the main objective of the exercise is to make money instead of ensuring the safety of motorists.
The signage on the highway is up to the best global standards and boards at overbridges carry intelligent advice for motorists ranging from 'check your gauges frequently'; 'Retire the worn out tyres'; 'Drive slow in fog and rain.' A Lahore-based industrialist told Mail Today that he prefers to go to Islamabad by the motor way instead of catching the flight.
Read more: http://www.dailymail.co.uk/indiahome/indianews/article-2102861/Splendid-roadway-makes-sub-standard-airline-Pakistan.html
Here's a Reuters' report on Singapore company buying stake in Karachi's container terminal operator:
Singapore's International Container Terminal Services Inc (ICTS) said on Tuesday its subsidiary plans to acquire up to 55 percent of a Pakistan container cargo terminal operator.
ICTS's unit ICTSI Mauritius Ltd is intending to buy 35-55 percent of Pakistan International Container Terminal Ltd , whose terminal is located at the Karachi port, it said in a statement.
The company did not say how much it will pay for the acquisition, but noted that the Pakistan firm handled a total of 669,806 twenty-foot equivalent container units for the year ended June 30, 11 percent higher than the year before.
http://www.reuters.com/article/2012/03/06/icts-idUSL4E8E63HR20120306
NHA to implement 82 highway schemes at Rs 569bn, reports Daily Times:
National Highway Authority (NHA) is implementing 82 highway schemes at the cost of Rs 569 billion, while 14 new projects are in pipeline costing Rs 95 billion.
The participants of 11th Senior National Management Course visited NHA head office here on Wednesday where
NHA’s member (planning) Sabir Hasan while briefing about the functioning of the NHA to visiting faculty members of the 11th Senior National Management Course said 98 Toll Plazas have been approved on NHA, out of which 84 were operational.
NHA is striving hard for availability of National Trade Corridor (NTC), in the country. Practical advancement is being made for achieving North South economic corridor, providing linkages with Gwadar and up gradation of Karakoram Highway in particulars.
Under NTC programme highways, Motorways, Expressways are being constructed from ports to borders with the view to provide linkages for the Transit Trade. NTC will reduce 50 percent travelling time, decrease 10 percent transportation cost and reduce 70 percent road fatalities.
Rs 300 billion will be spent during the next 5 to 7 years for this gigantic programme. Toll Collection System is being established on modern lines, he added.
He said pragmatic steps have been taken to save asset of highways from bad effects of overloading. To this effect weigh stations have been set up at specific locations to check the overloaded vehicles. In order to ensure construction of durable roads state of the art and advanced technologies are being employed. NHA is attaching great importance to make journey safe and sound on its network, he added.
http://www.dailytimes.com.pk/default.asp?page=2012\05\08\story_8-5-2012_pg5_5
Here's a Nation report on Karakoram Highway progress:
HUNZA - Prime Minister Raja Pervaiz Ashraf on Friday launched two landmark multi-million dollar strategic projects at the Karakorum Highway (KKH), aimed at restoring the historic road linkage with China that was severed due to the artificial Attabad Lake created as a result of landslides.The Prime Minister performed the ground-breaking of realignment of a 17-km long section of the Karakoram Highway (KKH). He also inaugurated the 510.42 million dollars upgradation of a 335 km long section of the road from Raikot to Khunjerab that has now been widened and meets international standards of construction.Prime Minister, who earlier had an aerial view of the Attabad lake, the upgraded road and the proposed road alignment site, said that the new roads were part of an effort of the government to provide the people of remote areas a fast and easy linkage with the rest of the country. He said that the road would not only ease travel, but also help provide all facilities of life. He said it would further deepen the strong ties between Pakistan and China. Raja said that road links were known to bring progress and prosperity to the areas they touch and hoped that a new era of development would usher in.He said that road links were a priority of the government and recalled his meeting with Chinese leaders during his recent visit to China where the KKH's upgradation and re-alignment were discussed. He appreciated and thanked the Chinese government for keeping its promise of despatching the required heavy machinery for completion of the project....
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/national/29-Sep-2012/raja-launches-projects-to-restore-karakorum-highway
Here's a BR report on WB and ADB financing infrastructure projects in Pakistan:
ISLAMABAD: Pakistan has signed eight new projects worth $2.24 billion with the World Bank while six projects of $69 million have been signed with Multi Donor Trust Fund (MDTF) during the last fiscal year.
Documents obtained by this correspondent showed that the Project of Tertiary Education worth $300 million, Social Safety Net TA Additional Financing of $150 million, Tarbela (Fourth Extension) worth $840 million, Punjab Irrigated Agriculture Productivity Project $250 million, Natural Gas Efficiency Project $200 million, Punjab Education Sector program worth $350 million, Sindh Skill Development of $21 million and Highway Rehabilitation Additional Financing project worth $130 million were signed between Pakistan and the World Bank during 2011-12.
The projects of Khyber-Pakhtunkhwa Emergency Road Recovery Project worth $8 million, Khyber-Pakhtunkhwa Fata Economic Revitalisation Project $20 million, KP Fata Governance Support Project of $6 million, Fata Rural Livelihood and Community Infrastructure worth $12 million, Fata Urban Centre Project of $7 million and the project of Revitalizing Health Services in Khyber-Pakhtunkhwa worth $16 million are the projects signed by Pakistan with MDTF.
Documents also showed that the Asian Development Bank’s (ADB) active portfolio in Pakistan comprised $3.3 billion in loans for 23 ongoing projects: $143 million in grants and $9.37 million in technical assistance as of June 30 this year. In terms of lending modality, the Multi tranche financing Facility accounted for 49 percent of the portfolio and project leans at 41 percent while disbursement achieved during FY 2011-2012 amounted to $429.4 million.
One of the key pillars of reform in the power sector of Pakistan is to enhance power generation, replacement of inefficient plants and improve the transmission and distribution system. In this regard, ADB has committed a financing facility of $2.9 billion over medium-term.
Documents also showed that the ADB organised 55 capacity-building initiatives for 2011-12 for Pakistan in areas of irrigation, energy, transport, environmental safeguards, gender statistics, poverty reduction, regulatory practices, financial inclusion approaches, sustainable and millennium development goals, taxation, public sector management, planning, budgeting and evaluation, foreign direct investment, procurement, project processing and regional integration.
http://www.brecorder.com/top-news/1-front-top-news/84391-pakistan-wb-sign-eight-new-projects-worth-224bn-.html
Here's KMC's release regarding 4 planned flyovers on Shahrah-e-Pakistan:
Karachi: Sept02: KMC Administrator Muhammad Hussain Syed has said that the construction work of flyovers at Shahrah-e-Pakistan and S.M Taufeeq Road will be started this week and will be completed within the estimated time which is 6 months. He said this during an inspection visit at the construction place of four flyovers at Shahrah-e-Pakistan where he was accompanied by Director General Technical Services Altaf G. Memon, Sr. Director Mass Transit Rasheed Mughal, Sr. Director Transport & Communication Muhammad Ather, Project Directors Syed Muhammad Taha, Abdul Rehman Shaikh, Noor-ul-Haq Shaikh and other high officials. He said that planning for construction of four flyovers at Shahrah-e-Pakistan was already made and offices of concerned contractors have been setup whereas traffic diversion plan was also made final. He said that construction work of four flyovers will be started at the same time with least effect on traffic and no inconvenience for people whereas service road will be widened after removing encroachments. Administrator Karachi Muhammad Hussain Syed was informed by Project Director Syed Muhammad Taha that construction of flyover at Water pump will cost 383.37 million rupees and flyover at Aisha Manzil will cost 378.20 million rupees and the length of flyover at Water pump will be 140 meter long with 3 lanes for each side of traffic which will consist of 11.80 meter width whereas the length of flyover at Aisha Manzil will be 590 meter long for both sides. Project Director of S.M Taufeeq Road Dakhana, Abdul Rehman Shaikh informed that the construction of flyovers at this road will cost 385.5 million rupees and the length of the flyover will be 497 meter long whereas two tracks with 11.80 meter length will be made whereas 5 spans, 78 piles and girders will be made. Administrator Karachi on this occasion directed engineers and contractors to take special care of quality and time during construction of flyovers. He said that the construction of these flyovers will maintain traffic flow on this road and provide transportation facilities to the citizens.
http://kmc.gov.pk.sv2.premiumwebserver.com/News/NewsDetail.aspx?id=898
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