The Asian Development Bank (ADB) has promised assistance on development of National Trade Corridor (NTC) for improving logistic facilities to boost regional trade.
The NTC will link upper northern parts of the country with ports in the South to reduce travel time and fuel cost by improving existing road network, N-5, N-55 and introducing new motorways, M-4, M-5, M-6, M-7, M-8, M-9 by 2012.
A high-level delegation from ADB, led by Mirinda visited Planning Commission and met Dr M Akram Sheikh, Minister of State/Deputy Chairman, Planning Commission and discussed the Bank's possible assistance to Pakistan and other issues related to country's development agenda.
The government would need about 7 billion dollar for NTC and road network development projects, completion within seven years.
It will have multi-faceted benefits, reduce the losses and significantly contribute to the national exchequer.
It is worth mentioning that the government is proposing allocations of about Rs 225 billion for Public Sector Development Program (PSDP) with top priority to water and power and infrastructure sectors development.
The government is also prioritising transport and communication sector in the upcoming PSDP allocations.
Top priority would be development of National Trade Corridor that is of great significance for the economic and social development, it is learnt.
NTC plans to focus on overhauling the logistic system. The delegation was told that the important areas, which need improvement include ports and shipping, trade facilitation, highways modernisation, trucking modernisation, railways restructuring and air-transport modernisation.
It is estimated that the transport cost of trade goods would be reduced through restructuring and modernisation of railway, under the National Trade Corridor programme, which will contribute in terms of saving of 2 to 2.5 billion dollar per year. The administrative measures, reducing documentation would result in saving of 1.2 billion dollar per annum.
Besides, the modernisation of existing trucking fleet was also planned, which would reduce fuel import bill by 25 percent and road maintenance cost by one billion dollars.
To develop the corridor, the government is now seeking financial assistance from ADB for its development.
The visiting delegation was given a presentation on National Trade Corridor and was briefed about the future vision on trade and transport sector.
Akram Sheikh also highlighted the potential areas of co-operation and referred to the strategic location of Pakistan for regional trade, stating that the neighbouring countries could take significant advantage of it by initiating trade links with Pakistan.
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