Pak to spend PR 520-bn for National Trade Corridor

Islamabad: The government would spend Rs 520 billion by 2012 to develop National Trade Corridor (NTC) to boost trade activities and exports.

A source in the Ministry of Communications said that the NTC would link upper parts of the country in the North with ports in the South to reduce travel time and fuel cost by improving existing road network and introducing new highways and motorways by 2012.

The development of NTC would cause multi-faceted benefits, reduce the losses and significantly contribute to the national exchequer, he added. On completion of the NTC by 2012, the cargo travel time from Karachi to Peshawar would be reduced from 72 hours to 36 hours, and road losses would be reduced to the tune of over one billion dollar per annum which would reduce annual transportation cost by 10 percent, the source added.

Talking about steps being taken for development of road network, he said 600 kilometres portion of Karakoram Highway was being upgraded and expanded by Chinese help with the cost of 350 million dollars.

He said the main artery and the main North-South Corridor linking Karachi with Torkham on Pakistan-Afghanistan border via Lahore, Rawalpindi and Peshawar the National Highway N-5 was the mainstay of the country's road network and its economic lifeline.

The Great Trunk Road N-5 has been converted into a dual carriageway and it is being rehabilitated on priority basis. Similarly Indus Highway (N-55), which is on the left bank of the Indus River, is also being constructed according to the specifications of the Asian Highways recommended by the Asian Development Bank. After construction of the Kohat Tunnel, N-55 was set to play a vital role not only for Pakistan but for inter-regional connectivity also, he added.

The transport cost of trade goods would be reduced through restructuring and modernisation of railway under the NTC programme, which will contribute in terms of saving of two to 2.5 billion dollars per year.

The administrative measures, reducing documentation would result in saving of 1.2 billion dollars per annum, he said. He said 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 dollar.