TRANSPORTATION INDUSTRY - DRIVING THE ECONOMY FORWARD:

Located at the crossroads of South Asia, Pakistan has gained worldwide recognition as a regional gateway to international trade markets. The country has been facilitating the transportation of all types of goods across its territory.

The revenue generation from the transportation sector of Pakistan is estimated at USD 17 billion annually, contributing 10.2% to the country’s GDP. The Foreign Direct Investment in this segment has been approx USD 500 million in the past five years.

Rapid economic development over the past five years has necessitated that the existing transportation andlogistics services be brought in line with the country’s growing needs.

Under Public Sector Development Program (PSDP), the Government has allocated US$ 2.21 billion to upgrade the transportation infrastructure for the development of both domestic and regional trade routes.

Road Transportation:

Road transportation is the most important means for the movement of goods within Pakistan and onwards to its neighbouring countries. Everything, from food supplies to industrial plants and equipment, is transported via roads. It is noteworthy to mention that trucks and light commercial vehicles constitute 96% of the total domestic freight traffic.

The National Highway and Motorway Network (NHMN) is an extensively interconnected system of intercity roads that runs through the length and breadth of the country. NHMN carries 90% of the total road freight traffic and spans an impressive 12,000 km, constituting 4% of total roads in the country.

Railways:

The railway system is second only to the road network in terms of freight and cargo traffic. ‘Pakistan Railways’ is the only enterprise that provides rail service in Pakistan, catering to the large-scale movement of people and freight.

During the past nine years, freight traffic via Pakistan Railway’s infrastructure has registered an average annual growth rate of 4% per annum, reaching 5.2 billion-ton-KM in 2010-2011. At the same time, the railway passenger traffic has reached 24.4 billion passenger-km registering an average annual growth of 3.2%.

Sea Ports:

Sea ports are the primary trade conduits for Pakistan. The country’s two major ports, namely Karachi Port and Bin Qasim Port, handle 95% of all international trade, including imports, exports and transit cargo. Private Sector dedicated terminals have been constructed for handling containers, chemicals, oil etc.

In addition, Gwadar Port has been developed under the financial and technical support of China. With a well-equipped and fully-functioning port at Gwadar, Pakistan will further promote trade and transport with Gulf States, China, Europe, Africa and Central Asian Countries.

Airports:

There are 32 civil airports in Pakistan. The Quaid-e-Azam International Airport in Karachi is the major hub for air cargo, but significant levels of both domestic and international freight are also handled at airports situated in Islamabad and Lahore.

ROAD	Total Network (KM)	260,000
	Govt. Allocation under PSDP, 2005-10 (USD)	2.55 Billion approx.
RAILWAYS	Total Network (KM)	8163
	Government Investments, 2005-2010 (US$)	858 million.
SEAPORTS	Total Freight Handled (Tons)	64.8 million
	Government Investments, 2005-2010 (US$)	54.6 million.
AIRPORTS	Total Freight Handled (Tons)	31.6 million.

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