1. Presentation On Transportation & Telecommunication Sector of Pakistan

2. Introduction Transport & communication Sector plays Important role Common modes of transport are Rail, Road, Marine(Sea) and Air transport Survey Report of 2012-13 shows that it accounts for 10% of GDP & provides 2.3 million jobs i.e 6% of total employment 3. Road Transport 4. Road Transport The most Important sector of Infrastructure Rapid Eco. Development & well being depends on Road networks. Road network (96% inland freight & 92% passenger traffic). Easy access to remote areas (63% of Population). Total Road network of Pakistan 263,415 km. (9,324 km National Highways & 2,280 km Motorways) 5. National Highway Authority NHA is playing an important role Current network of NHA 12131 k.m. (33 national highways, motorways, strategic roads) NHA existing portfolio 79 projects (Rs.557 billion) Govt of Pakistan (Rs. 50.7 billion) NHAs development projects in PSDP 2012-13. 6. National Highway Authority On Going Projects: 1. Faisalabad Khanewal Multan Motorway (M-4) 2. Sehwan-Ratodero Additional Carriageway (N-55) 3. Sukkur-Shikarpur-Jacobabad (N-65) 4. Qila Saifullah Zhob (N-50) 5. Peshawar Northern Bypass (E-2) 6. Khushalgarh Bridge (N-80) 7. Qazi Amri Bridge across River Indus 7. National Highway Authority Completed Projects: 1. 6 Interchanges on Inner Ring Road Multan 2. 4-lane Underpass at Wah Gate, Texila 3. Multan Muzaffargarh (N-70, ADB Assisted) 4. Larkana-Naudero-Lakhi Road 5. Sakrand-Benazirabad Dual Carriageway 6. Hyderabad Badin Road to Mir Wah Sanjar Chang Road 7. Ghazi and Chuch Interchanges on Motorway (M-1) 8. Pleri-Gabd Section of Makran Coastal Highway 9. Hub-Uthal Section of National Highway (N-25) 10.Metro bus 8. Metro bus at Lahore Govt. of Punjab started Mass transit system in Feb. 2013 Punjab metro bus Authority authorized its construction with technical help of Turkish firm. Project Cost ( 30 Billion) Metro Bus System facilitates passengers from Gajjumata to Shahdara on 27 stations. 64 articulated buses operate in 27 k.m 1500 jobs created & 120,000 passengers are facilitated everyday. 9. Road Transport Problems Inconsistent govt. policies Improper maintenance Lack of roads in rural area Violation of rules High corruption in road funds 10. Road Transport Solutions Make law for continuance of projects Proper check and balance Roads for rural and agriculture area Charge High fines 11. Rail Transport Pakistan Railways network comprises of (7791, 515, 1901, 17543) Worst crisis. (Passenger Traffic 230(92), Freight 96(1) Since 2011-12 (June) No. of locomotive available (10,8 and 92)/month. As a result, Revenues (25%), Expenses (33%). 2011-12, Emp. Related Cost & Pensions (198%) of Revs. As evident from table, Pak Railways earnings in last 5 years 12. Rail Transport in Pakistan 13. Railways At Present Main factors for Increase in Operational Expenditures: Over aged Infra, Rolling stock, fuel prices $ Exchange rate escalations, subsidized rail fares Sharp in Salaries & Pensions 2010-11 & in 2011-12 (at cost of Oper. & Maint. requirements) Commitment of Finance Division GOP has allocated Rs. 23 Billion in PSDP (2012-13) 14. Railways At Present New Initiatives under Public Private Partnership (PPP) Under PPP, Pak. Railway has started trains b/w LHR & KCH (Feb 3rd 2012) 15. Public Private Partnership Provision of high level passenger services at Comp. Prices ( Rev for Pak. railway) Responsibility of Pak. Railway & Private Partners To generate max revenues & to fin. Losses (18 more trains by Ministry of Railways) 16. Achievements during the fiscal year 2012-13 Track: During 2012-13, rehabilitation of 60 km Doubling of tracks (68 km) Rolling Stock: Contract agreement with Chinese Supplier Firm 202 coaches 152 received balance 50 Moreover manufacturing of coaching is in progress at Railway Carriage Factory Islamabad (2012-13) 17. Achievements during the fiscal year 2012-13 Rehabilitation & Repairs of Locomotives: At present, more than 300 locomotives are out of service Following initiatives are under way for their rehabilitation: Funding through Banking Consortium through PRACS ( 6.1 Billion) Agreement of Rehab. of held up locomotives (27) through PSDP & Electromotive Division USA ( 2 locomotives /month 2014) Special Repair of Locomotives through PSDP (Rs.5005 million for 150 locomotives) (20 Loco. By 2012-13 & rest in 2 years) 18. Problems Union activities Overstaffing Corruption Shortage of funds 19. Suggestions Privatize Complete projects Eradicate corruption Proper use of funds 20. Water Transport Geographic Location of Pakistan Ignorance of Inland Water Transportation Most Economical form of transportation Introduction of Canal System: 21. At Present Major Ports: Karachi Port Port Qasim Gawadar Port Other Ports: Ormara Jiwani Pasni 22. Port Of Karachi: At the Top Of The Food Chain Location % share in total national cargo handlings Geographic Position Administration ( K.P.T) 23. Port of Karachi Facilities provided at Port: 2 Wharves No. of multipurpose berths Container Terminals & Oil piers Operation of KPT Deadweight tones (DWT) 24. Port of Karachi Cargo handled in Current Fiscal Year Cargo handled in last 5 Years 25. Port Muhammad Bin Qasim (Port Qasim) Port Qasim Authority % share in total national cargo handlings Cargo handled in Financial Year 2012-13 (18.569) Volume of Import Cargo 2012-13 & 2011-12 (13.458 , 13.301 ) Volume of Export Cargo 2012-13 & 2011-12 (5.111 , 4.454 ) 26. Port Qasim Cargo handled by PQA: Containerized Cargo (7.677 ) Liquid Cargo (8.343) Miscellaneous Types (2.550 ) TEU (0.538) 27. Gawadar Port Location Construction of Gwadar Port Phase 1 Phase 2 Agreement with Port of Singapore PSA highest bidder 28. Gawadar Port Cancellation of PSAs Contract Agreement with China Inauguration & Commencement of Operations Import Decision of GOP Cargo handled till now 29. Pakistan National Shipping Corporation Establishment At Present Total DWT capacity of Fleet 30. PNSC Revenue till 31st Mar-2013 An in Rev than Previous year Expenses incurred Net Profit till 31st Mar 2013 Sale of Vessel 31. PNSC Commercial & Financial Performance during July-Mar 2012-13 is given in following table ( Un-Audited) 32. PNSC Transport for Oil Sector Future Plan of PNSC Present Plan Contract with PSO Addition to current fleet Acquisition of Vessels 33. Potential of Inland Water Transportation: Length of Channels Surveys & Studies on Inland Water Transportation Non-usage of inland water transportation Current Inland water transportation potential Survey of Indus River Preparation of track charts 34. Potential of Inland Water Transportation Cost of 24-ft road /K.m Cost of Entire Indus Project Maintenance Cost of Roads Maintenance Cost of Waterways Only need is Political will 35. Problems Nationalization Policy 18th Constitutional Amendments Lack of Loan facilities Decrease in Exports Navigational Locks on Indus River Underdeveloped Infrastructure Dominance of Foreign Freight Cos 36. Solutions Privatization Uniform Maritime Policy Increase in Exports Shipping sector Inland Water Transportation Cruise Ships Services Foreign Exchange Savings 37. Air Transport 38. Air Transport Major Airports of Pakistan: Islamabad International Airport Allama Iqbal International Airport Jinnah International Airport Peshawar & Sialkot International Airport Major Airlines in Pakistan: Pakistan International Airlines Shaheen Air Air Blue 39. Air Transport Pakistan International Airlines (PIA): 5 year Strategic Business Plan Introduction of New Aircrafts Result Focus of Present Management Award from Saudi Civil Aviation Authority (98000,96%) International Ranking 40. Air Transport Initiatives taken by PIA: Marketing Plan Fori Ticket Service Facilities to non-IATA travel agents Success 41. Pakistan International Airlines Revenues earned in 2011-12 (112.1, 117.4, 4.7%) Availability of Seats in 2011-12 Decline in Expenses (2011-12) (125.7 , 132.9 ) Routes covered (448,120 , 460,719 ) 42. Pakistan International Airlines Operational Performance of PIA: 43. PIA Cargo Service Commencement of Operations Freight op network Boost to Exports Cargo Services 44. Problems Financial Position Corruption Flight Delays & Cancellations Maintenance & Repair International Bans Nepotism & Employees Union Civil Aviation Authority 45. Suggestions/Solutions Privatization Bail out Packages Acquisition of New Aircrafts Effective Management Special Incentives 46. Cellular mobile sector Better growth during the last two years Since 2009, single digit growth due to Slow economic growth and availability of only 2g services Rural market provide opportunities 47. Cellular subscription 121 million mobile subscribers at the end of March 2013 118.32 million subscribers last Out of 121 million, 119.2 million are pre-paid And 1.8 million post- paid 48. Cellular Market Share Mobilink (largest player) is losing its share More than 50% share in 2004 has declined to 29.8% at the end of feb 2013 CMPak has been able to achieve 15.4% of market share Warid continuously losing its market share since 2009 Has lowest market share 10.4% Telenor has 25.2% while ufone has 19.3% market share 49. Network Mobile network covering over 92 percent of the land area of Pakistan companies have expanded their networks cellular industry has shown a growth of 8.4% in cell sites during 2012 50. Basic services Local loop subscribers were 6.16 million at the end of March 2013 Local Loop industry has grown by 1.5% during the last year FLL subscribers were 3.03 million WLL subscribers were 3.13 million Growth in subscribers is a result of strong performance of PTCL, Wateen and World Call mainly in the WLL sector 51. Broadband Broadband in Pakistan is an example of technologically advanced and consumer friendly market GOP extended full support to telecom sector especially broadband Spending Rs. 22 billion on rural telecom development Government has plan to allocate Rs. 17 billion in next year budget for broadband services 52. Subscriber Mix Broadband subscribers crossed the two million mark in just a few years This year the broadband industry added the highest number of subscribers average annual growth rate remained above 100% Pakistan's broadband market has tremendous potential for growth and investment Currently, Broadband subscribers stood at 2.54 million at the end of March, 2013. 53. Telecom investment Telecom sector of Pakistan has attracted substantial investments More than US$ 12 billion have been invested in the telecom infrastructure and new technologies Currently, over 92 percent of our population has access to telecom services which has been possible due to expansion of telecom infrastructure all over the country 54. Telecom investment net inflows of FDI in telecom remained negative during the year on account of capital outflow by some companies Overall slow economic growth has also contributed in the low investment in telecom it is expected that the cellular mobile sector will attract significant investment in the next two years, With the expected launch of 3G/4G services in the country 55. Telecom contribution to national Income Telecom sector has been contributing to the national income in terms of taxes, regulatory fee, activation tax and other charges During 2012, the sector has contributed a record amount Rs. 133 billion Major share of this growth has been through Federal Excise Duty (FED) and other taxes 56. Telecom contribution to national Income Telecom sector has been overburdened with heavy taxes contributing almost 30 percent of their revenues under FED and withholding tax. General Sales Tax (GST) on telecom services is deducted under FED @19.5% 57. PEMRA a statutory body established in March 2002 to facilitate and regulate growth of Electronic Media in the private sector is primarily mandated for licensing and regulating the establishment and operation of all broadcast media in Pakistan 58. PEMRA During the last ten years the country has witnessed a massive spurt in the number of TV channels and FM radio stations Raise the standards of public awareness and literacy 59. Economic contribution the Electronic media has shown some resilience There has been a cumulative investment of approximately U.S. $ 3.0 billion in the electronic media industry in Pakistan has generated direct employment for more-than 200,000 people of diversified skills and qualifications U.S. $ 4.0 billion cumulative investment is expected increasing job opportunities for skilled media personnel and journalists 60. Pakistan Television Corporation extending its signal to remote and economically backward areas PTV is operating 6 multiple terrestrial channels PTV home, PTV News, PTV Bolan, PTV National, PTV Global and PTV Sports a TV Channel has been established in Azad Jammu and Kashmir with one TV Centre with four Rebroadcast Centers at Kotli, Rawala Kot, Bagh and Bhimber. 61. Pakistan Television Corporation an English television channel was required PTV has launched English News Channel in January 2013 the only English News Channel in Pakistan telecasting the information about Pakistan domestically as well as internationally 62. Pakistan broadcasting corporation Pakistan Broadcasting Corporation (PBC) is the largest state-owned media organization of the country operates with 64 AM/FM Radio Stations/Channels, spreading all over the country with its daily broadcasts of about 940 hours programmers and 124 news bulletins of 746 minutes in 29 languages 63. PBC MAJOR SERVICES News bulletins are placed on air daily Saraiki News Bulletin has launched on 8th February 2012 Four local bulletins were also launched from Abbottabad. PBC monitors news talk shows and comments of 14 radio and 10 satellite TV channels SABS is broadcasting programmes in five Languages Mitali (Bangla), Hindi, Nepali, Sinhali and Tamil 64. PBC EXTERNAL SERVICES Broadcasts programmed for 8 hours daily in 11 foreign languages covering countries; Afghanistan, Iran, China, India, Bangladesh, Nepal and Sir Lanka 65. MODERNIZATION PROJECTS for establishment of an earth satellite station at National Broadcasting House Islamabad first-ever Digital Satellite News Gathering (DSNG) Website of PBC has been upgraded and incorporated many new features 66. MODERNIZATION PROJECTS The website is connected with the social media websites like Facebook, You Tube and Twitter 2.5 KW FM transmitter installed at PBC Murree has been and upgraded with 5 KW FM transmitters establishment of two FM-98 stations at Islamabad and Karachi. 67. Problems & Suggestions Termination of mobile services Taxes No Documentation Misuse of powers