COVID-19’s Impact on Pakistan’s Transport Sector: Report

The most significant impact of the COVID-19 for road and rail transport in Pakistan was on border-crossing time as trade facilitation indicator (TFI) averaged 55.7 hours, far above the 28.3 hours in 2019, states the Asian Development Bank (ADB).

The bank, in its report, “CAREC Corridor Performance Measurement and Monitoring Annual Report 2020, the Coronavirus Disease and its Impact,” has recommended for concluding Afghanistan–Pakistan Transit Trade Agreement negotiation to resolve the remaining issues on transit trade — a cornerstone for other transit trade that could attract other CAREC members.

Border-crossing fees and total transport costs saw little change. From 2019 to 2020, the former changed from $283 to $280, while the latter stayed at $704. Speed without delay (SWOD) changed from 10.6 km/h in 2019 to 8.0 km/h in 2020, and speed with delay (SWD) changed from 28.2 km/h to 28.1 km/h.

Torkham and Chaman continued to remain time-consuming border crossing points (BCPs), worsened by the pandemic.

The average time to cross the border at Torkham increased from 60.1 hours in 2019 to 70.7 hours in 2020, whereas, in Chaman, the time increased from 35.7 hours in 2019 to 50.0 hours in 2020.

Pakistan continued intensive efforts to increase transit and trade efficiency, adopting modern trade facilitation measures. Work on a national single window and authorized economic operators continued. The customs management system called WeBoc was upgraded to perform multimodal transit to effect TIR operations.

The National Logistics Policy was sent to the federal cabinet for review at the beginning of 2021. When the COVID-19 began to raise alarms worldwide, the government ordered a moratorium on all cross-border activities beginning early March 2020, resulting in a stoppage of all border activities at Torkham and Chaman BCPs.

This resulted in a large number of containers bound for Afghanistan being stuck at the seaport, inland customs offices, and the two BCPs. By 14 March 2020, Pakistan Customs reported that 1,587 containers and 526 containers remained in Quetta and Peshawar, respectively, after they were released from the Karachi seaport. By 22 April 2020, it was estimated that in Karachi, at least 6,000 TEUs got stranded in the seaport bound for Afghanistan.

The average border-crossing time in Q2 2020 for Pakistan surged to 81 hours on average, which was double that of Q2 2019 and Q1 2020. This was driven by the increased border-crossing time at Torkham and Chaman in Q2 2020.

Throughout 2020, the border-crossings remained challenging due to the additional sanitary controls and health checks, on top of the existing time-consuming procedures.

The Bank gave several recommendations including,

1. Approve the National Freight Logistics Policy (NFLP)

The NFLP consists of 10 objectives, 13 policy actions, and 125 specific recommendations. The endorsement of the policy by the Cabinet will resolve many long-standing issues that constrain the freight and logistics sector, such as port congestion, underdeveloped multimodal transport, and high cost of transportation. Yet as of Q1 2021, the Cabinet has not formally endorsed the policy since it was completed in March 2020.

2. Enhance traffic control via “smart parks and tags.”

Pakistan authorities have taken action to terminate illegal private parking lots near the border and implemented radio frequency identification (RFID)-enabled tags to coordinate movements of vehicles so that border-crossing at major BCPs such as Torkham could be more efficient. Strong actions are needed as the shortage of tags during COVID-19 resulted in additional delays. Private operators of parking spaces could be encouraged under public-private partnership so that the vehicles do indeed move in a coordinated and organized manner, using smart technologies such as RFID.

3. Promote Ghulam Khan as an international border-crossing point

Torkham is consistently one of the most time-consuming BCP due to high traffic, and presently the situation is aggravated by the ongoing construction works under the CAREC Regional Improvement of Border Services (RIBS) project. Pakistan has already designated Ghulam Khan as the third international BCP, a laudable move that needs to be supported with infrastructure upgrades and installment of equipment and trained personnel. This would attract traffic and relieve the congestion at Torkham.

4. Incentivize freight trains from Karachi to Peshawar

Currently, all Afghan transit trade is transported on trucks. New freight train services were launched in 2019, from Karachi to Lahore. If the freight train service could extend to Peshawar as the terminus, this would allow a cost-effective solution to facilitate transit trade and reduce shipment costs, which are now high due to the sole reliance on trucking.

Pakistan exports tropical fruits to Tajikistan, with Afghanistan serving as a transit country. Due to security conditions within Afghanistan and the ongoing negotiation to conclude the stalled Afghanistan–Pakistan Transit Trade Agreement (APTTA) 2010, multiple changes of trucks are required.

The Turkmenistan–Afghanistan–Pakistan–India pipeline was progressing, although it was hampered by security concerns over Taliban-held areas in the north-western region of the country. This project would balance the supply of energy from surplus in Turkmenistan to deficit areas in India and Pakistan.

The report further noted that the country participates in the continuous dialogue on the Afghanistan–Pakistan Transit Trade Agreement (APTTA) 2010, a bilateral agreement between Afghanistan and Pakistan, which resumed negotiations in 2019.

The latest discussions also included the exploration of setting up border markets, an invitation to Afghanistan to participate in the China–Pakistan Economic Corridor (CPEC), as well anti-corruption measures along the transit routes.

On a positive note, neighboring countries, Pakistan and Uzbekistan have discussed actively with Afghanistan on a railway linking Mazar-i-Sharif to Peshawar, creating a railway corridor along with the three countries, it added.

Source: Pro Pakistani

3G/4G Users in Pakistan Reach 106.68 Million

The number of 3G and 4G users in Pakistan reached 106.68 million by the end of November 2021 as compared to 105.73 million by the end of October 2021, registering an increase of 0.95 million, according to the PTA data.

The number of cellular subscribers in Pakistan increased by 0.8 million to 188 million by the end of November 2021 as compared to 187.20 million by the end of October 2021. Teledensity for cellular mobile increased from 85.33 percent by the end of October to 85.65 percent by the end of November. The total teledensity increased from 86.47 percent by the end of October to 86.79 percent by the end of November.

Monthly Next Generation Mobile Service (NGMS) penetration stood at 48.60 percent by the end of November against 48.19 percent by the end of October 2021. Jazz’s total count for 3G users stood at 6.915 million by the end of November as compared to 7.049 million by the end of October 2021, registering a decrease of 0.134 million. The number of Jazz 4G users jumped from 34.275 million by the end of October to 34.527 million by the end of November.

Zong 3G subscribers decreased from 3.844 million by the end of October to 3.758 million by the end of November, while the number of 4G users jumped from 25.413 million by the end of October to 25.950 million by the end of November.

The number of 3G users of Telenor decreased from 4.356 million by the end of October to 4.217 million by the end of November. The number of 4G users jumped from 19.128 million by the end of October to 19.444 million by the end of November.

Ufone’s 3G users decreased from 4.063 million by the end of October to 3.960 million by the end of November. The number of its 4G users increased from 6.437 million by the end of October to 6.722 million by the end of November.

Source: Pro Pakistani

Pakistan to Present 6th Review to IMF Board Next Month

The government of Pakistan will present the sixth review of the authorities’ reform program supported by the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) on 12 January 2022.

According to a spokesperson for the Ministry of Finance, Pakistan will soon present its progress and related policies and reforms pivotal to the completion of the sixth review to the global lender.

The review is subject to approval by the IMF’s Executive Board, following the implementation of prior actions, notably on fiscal and institutional reforms.

The development comes despite the government having deferred a cabinet motion of the State Bank of Pakistan Amendment Bill, 2021, in order to meet the pre-conditions set by the International Monetary Fund (IMF).

The development comes despite the government having deferred a cabinet motion of the State Bank of Pakistan Amendment Bill, 2021, in order to meet the pre-conditions set by the International Monetary Fund (IMF).

The government is also seriously considering bringing amendments to the Finance Bill through an ordinance, according to Finance Parliamentary Secretary, Zain Qureshi

He stated that the government is now in a fix after the cabinet’s initial deliberation on the mini-budget where resistance to the SBP Amendment Bill came from a few ministers, leaving no option but to introduce an amendment in the Finance Bill through an ordinance.

Source: Pro Pakistani

Pakistan’s First On-Demand Delivery Service Raises Investment

Pakistan’s first on-demand delivery marketplace, Batoor, has raised an undisclosed amount in pre-seed funding from Astore Partners.

Based in the small village of Shahmansor, Swabi, Batoor was launched in January 2019 by Sanad Khan with only a meager sum of Rs. 500. The humble beginnings of the company started with Sanad Khan designing his own pamphlets, making copies, and distributing them door-to-door. Working as the CEO, marketing manager, delivery guy, and call center representative, Sanad Khan led Batoor as a one-man army.

As of 2021, Batoor now has more than a dozen employed locals, generated Rs. 4 million in revenue, and has completed more than 20,000 orders.

In a LinkedIn post, Sanad Khan wrote, “As Batoor grows, our aim is to bring even more convenience and prosperity to what is often an overlooked region”.

With the latest investment, the young founder plans on expanding the company’s business further across Swabi and Nowshera, building a larger team, and continuing the delivery of tailored and improved services in the area.

Sanad Khan further stated, “Our vision and mission is to make people’s lives easier and convenient, whilst saving them time and money.”

Regarding the partnership, Astore Partners commented, “We are very pleased to announce our partnership with Batoor. An amazing story so far and we [k]now Batoor and Sanad khan will go from strength to strength!”

Batoor is an on-demand delivery marketplace that delivers produce and other essentials straight from the local market to the customer. The B2B2C provides quick and affordable delivery services to both consumers and businesses.

The company currently operates in Mardan and Swabi, providing delivery services for food, grocery, parcels, medicines, and much more.

Source: Pro Pakistani

Rupee Finally Breaks Its Record-Breaking Streak Against the US Dollar After US Good News

The Pakistani Rupee (PKR) posted minimal gains against the US Dollar (USD), appreciating three paisas to stand at Rs. 178.12 against the greenback in the interbank market today. It hit an intra-day low of Rs. 178.65 against the USD during today’s open market session.

The PKR appreciated by 0.02 percent against the USD and closed at Rs. 178.12 today after it lost 10 paisas and closed at an all-time low of 178.15 in the interbank market on Wednesday, 22 December.

Although the local unit managed to halt the exchange spillover as various economic indicators consolidated in the past 24 hours supported by the US news that it is resuming aid to Afghanistan. However, the weight of expectations suggests that pressure will persist for the next few months due to little movement in commodity prices. Moreover, if the current account deficit remains between the $1.5-2 billion bracket during the period in question, the exchange rate could go through more hoops of fire.

Twisting the knife even further, it has been estimated by prominent authorities that Pakistan’s circular debt could plummet to levels as steep as Rs. 50 billion.

Globally, Reuters reported on Wednesday that oil prices surged following a larger-than-expected fall in US inventories, despite concerns over the spread of the Omicron variant’s impact on economic activity.

In light of the PKR’s interbank performance during the trading hours earlier today, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, stated, “Yesterday, [the] PKR settled at its weakest level after hitting yet another new low of 178.20. On June 30, [the] PKR closed at 157.5437. In CFY, it has tumbled 13.1%. This week despite OMICRON oil prices [which] surged by $5, & if measures are not taken to curb imports, [the] trade gap will bother.”

The PKR continued its declining trend against most of the other major currencies. It posted big losses of Rs. 1.57 against the Australian Dollar (AUD), Rs. 1.79 against the Pound Sterling (GBP), and 90 paisas against the Canadian Dollar (CAD).

It also posted losses of Rs. 1.09 against the Euro (EUR) in today’s interbank currency market.

Conversely, the rupee managed to halt any big movements against both the UAE Dirham (AED) and the Saudi Riyal (SAR) in today’s interbank currency market.

Source: Pro Pakistani

Jazz Tops PTA Complaint Charts Yet Again

Data from the Pakistan Telecommunication Authority (PTA) has revealed that Jazz leads the chart with 6,407 complaints, followed by Telenor as the second-most complaint about telecommunications operators with 5,149 complaints.

Zong was third with 2,701 complaints, and Ufone had 1,043 complaints about its services, according to the data.

The PTA received 15,863 complaints from telecom consumers against different telecom operators, including (cellular operators, PTCL, LDIs, WLL operators, and ISPs) in November 2021. The PTA said that it was able to resolve 96 percent (15,270) of the complaints.

Cellular mobile subscribers constitute a major part of the overall telecom subscriber base. Therefore, the maximum number of complaints belongs to this segment. The total number of complaints against CMOs by November stood at 15,311. However, Jazz is the largest cellular operator overall with respect to the ratio of subscribers, and hence the number of complaints was higher.

The PTA also received 229 complaints against basic telephony, of which 218 were addressed in November 2021. Furthermore, 310 complaints were received against ISPs, where 300 were addressed.

Source: Pro Pakistani