The inadequate and inefficient National Trade Corridor transport system in Pakistan is a big hurdle in smooth promotion of business activities and government should make more investment in improving and modernizing National Trade Corridor to reduce cost of doing business and to link Pakistan’s major ports in the South with its major cities and trade corridors to the North.

This was stressed by Mian Shaukat Masud, President, Islamabad Chamber of Commerce & Industry (ICCI) in a statement. He said the poor transport system generates high economic losses for trade and industry imposing a cost to the economy of about 4 to 6 percent of the GDP, constraining economic growth, reducing export competitiveness and hindering social development.

He showed concerned that due to government’s lethargic and lackluster attitude towards transport sector investment, World Bank has again postponed key loan regarding National Trade Corridor worth 834 million dollars for a year, which will further delay the efforts to improve the transport infrastructure in the country.

He said although the transport sector is functional in Pakistan but its efficiency is very low with long waiting and traveling times, high costs and low reliability resulting in higher charges for businessmen. These factors hamper Pakistan to capture a due share in the regional and global markets and constrain its ability to integrate into global supply chains which require just-in-time delivery.

Mian Shaukat said improving National Trade Corridor transport infrastructure will go a long way in promoting economic activities as it will greatly reduce the cost of doing business in Pakistan by reducing the cost of trade and transport logistics, bring services’ quality to international standards and will ultimately enhance export competitiveness as well as accelerate industrialization in the country.

He called upon the government to devise a comprehensive multi-sector reform program aimed at streamlining procedures, improving services and physical infrastructure comprising railways, roads, ports and air transport systems to develop a business friendly transport and communication infrastructure in the country.