Detracted trucking sector: who will take the wheel?

The transport sector always plays an essential role in enhancing the international competitiveness of an economy and it is crucial for the efficient functioning of the supply chain.

In developing regions effectual transport networks lessen production and transaction costs which also serve as a stimulus for the economy. The transport sector got the limelight owing to growing economic interdependence through an increasing volume and variety of cross-border.

Inefficient supply chains through high transport and logistics costs could hinder exports and import flows which may surge cost for firms especially those competing in the export market. The mode of transportation through road normally takes twice as long as they would in Europe owing to an obsolete fleet and poor and defective infrastructure.

This is one of the biggest reasons that Pakistan has failed to integrate into the global supply chains, which require just-in-time delivery. Another factor contributing to the incompetence of the Pakistani transport system is the fact that the local markets are not fully integrated. The Pakistan trucking industry is extremely scrappy with a large number of small operators and very few large and medium-sized operators.

Freight rates in Pakistan are also one of the lowest in the world. In order to maximise profits, the truckers tend to overload which in turn raises the cost because of the infrastructure degradation. Another main obstacle in this regard is the lack of reliable information on the sector. There is an incongruity in the number of total trucks in Pakistan with different studies quoting different figures.

According to available data, there were a total of 223,152 registered trucks as of 2011 while the Government of Pakistan estimates that only 93 per cent of these are actually plying the roads the rest of the 7 per cent being inactive due to poor condition. Another study quotes that Pakistan has 293,000 commercial cargo trucks operating. The discrepancy of figures reveals that there is a lack of accuracy in the available data due to the informal nature of the trucking sector. There is also a lack of research on the freight transport sector of the country.

Pakistan has been facing poor markets from decades and inadequacies in these have resulted in hindering the growth of the economy as a whole.

According to available data, about 30 per cent to 40 per cent of agricultural production is wasted due to bungling farm-to-market channels. An...