Budget 2011-2012: Rs4.5b allocation for Yellow Cab Scheme criticised

Published: June 29, 2011

The Punjab government allocated Rs4.5 billion in fiscal 2012 budget to provide 20,000 yellow cabs to youth of the province. PHOTO:FILE


The government is set to launch the Yellow Cab Scheme (YCS) without addressing issues like imposition of penalties in case of change in design and colour of vehicle, number of taxi stands, fare regulations, loan surety and the number and scheduling of installments, a senior government official said.

A number of officials, speaking on the condition of anonymity, said that even though the issues had been raised and discussed no consensus was reached. The investment of Rs4.5 billion would be a huge risk, they said.

Candidates of ages 35 and under will be able to apply for 800 cc vehicles through the Bank of Punjab on interest-free terms. The candidates must have an intermediate certificate and a valid driving licence. They will be charged a service charge of one percent. The successful candidates will be picked by computerised balloting to rule out allegations of nepotism, an official said.

The selected candidates would have to pay 20 per cent of the price as a down payment. The remaining amount would be financed by the Punjab government through a Bank of Punjab interest free loan. The candidates would pay back in installments, the amount of those have not been finalised as yet, the official added.

In the annual budget for 2011-12, the government allocated Rs.4.5 billion to launch the YCS.

Taxi cars and pickup loaders, 20,000 in total, are part of the scheme. Out of those, 8,000 taxis are to be provided to those having domiciles of south Punjab.

The vehicles are to be locally manufactured. The taxi’s would have a yellow roof and black body with the name of the concerned district on the front and the taxi owner’s name in the back. The pickups would be yellow.

The vehicles would be displayed on Tuesday (today) at the Punjab Civil Secretariat by the manufacturers for approval of the model by Chief Secretary Nasir Mehmood Khosa, an official said.

The manufacturers have recieved their orders and are ready to provide the vehicles in six months. The government plans to take possession of all the vehicles in one swoop. Prior to that, the successful candidates will be announced.

The Transport Department has been entrusted with the task of collecting and processing of applications and  coordinating with the bank.

During meetings, the Finance Department observed that fare tariffs and number of installments etc should be decided but others had the view that these decisions would be made by the Regional Transport Authority and the Bank of Punjab. The city government was not taken on board for the establishment of more taxi stands.

The issue of where the vehicles can go has not yet been decided. Regional Transport Authorities would, most likely, be directed to restrict these to the district boundaries.

Also up in the air was the issue regarding imposition of a fine and possible confiscation in case the owners changed the colour of the vehicle or the registration number.

A senior official said negotiations were in progress with manufacturers for a concession on the net price of

Published in The Express Tribune, June 29th, 2011.

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Reader Comments (9)

  • Yaris
    Jun 29, 2011 - 3:05AM

    where we should work to lessen the number of cars on our extremely clogged roads some genius decides to spend Rs 4.5bn on a taxi scheme? Why not invest in the public transport system (a service essential for any modern economy and a requisite for economic growth)
    This will bring no structural benefits to the economy…we might as well set fire to the money.. Recommend

  • tariq
    Jun 29, 2011 - 4:52AM

    Well Taxi Scheme is better than the BISP which is the money distributed for support without any income generation. I dont know why people feel ashamed of driving taxi where as when the educated lot goes to US and EU there they feel proud.Recommend

  • Tigon
    Jun 29, 2011 - 6:38AM

    Will we ever learn? Invest in mass transit you morons!Recommend

  • Jawad Husain Ansari
    Jun 29, 2011 - 2:20PM

    I have 3 things to say about these and all the similar schemes like these….

    1 – Without accountability, proper recoveries – its bound to fail.

    2 – Without sufficient business, the repayment will be a problem… and even if the taxiz are recovered… they will end up as JUNK!

    3 – The wheel of every economy starts with infrastructure, small industries and skilled work force… getting a taxi, wont solve 1 rupee worth of issue! for ANYONE!

    with 4.5 billion… they can set up small industry parks where people can rent shops, get power and other utilities on subsidized rates without breakdowns… and the criteria to facilitate people should be merit based skilled people… and they should be TAXED normally like any business!

    these people can be guided to work in small industries (cottage industries) and women entrepreneurs should be encouraged (because they have the best pay-back trends)Recommend

  • Sidra Humayun
    Jun 29, 2011 - 3:30PM

    I recommend Mr. Jawad Husain Ansari points. Also i strongly reject this step. Mr. Khadim-Ala making 3-4 under passes is not sufficient or solution of the issue. The issues exists still have you ever been to Shalimar Link Road , Gulshan Ravi Road connected to Band Road or even Band Road Ya Sanda Road aur Shad bagh You have NO IDEA at all at school off timings WE Lahores face what Qayamat on road even look at Davis Road that is Jam all the time and you are after cars.. You have destroyed the LOCAL TRANSPORT SYSTEM in Lahore completely and strengthened your business class on giving their favorite routes. 58 routs were in Lahore from which 30 are finished without inform people of this city.
    If you have plans why not learn to take us in confidence ask us in what circumstance we are passing our life in the city of Lahore. Few buses are on Mall Road which came in hour if it like to come ; now a days due to summer and summer vacations traffic load is comparatively less month of Ramazan and after summer vacations load will increase double tipple. PLEASE MAKE MEASURES. ROADS NEEDS EXPANSION AND EXTENSION. Public transport system should be available it reduces the burden on road. NO YELLOW CABS WELCOME in Lahore. NO no No. stop making money stop it. WE dont want any credits from damn banks. No yellow cabs… Why and how you think that graduate man should ONLY Drive a car as taxi????????? Recommend

  • Yaris
    Jun 30, 2011 - 4:41AM

    @tariq: Correct on the BISP bit, budgetary transfers to the poor hardly help their long run prospects. About the taxi scheme bit, who will benefit from more taxis on the road? The rich have their own gas guzzlers while the poor really cant afford to travel in Taxis. Wouldn’t it be more prudent to provide the poor masses with cheaper mass transit? Recommend

  • Jul 1, 2011 - 7:37PM

    very very good

    Well Taxi Scheme is better than the BISP which is the money distributed for support without any income generation. I dont know why people feel ashamed of driving taxi where as when the educated lot goes to US and EU there they feel proud.Recommend

  • Gulshan
    Jul 1, 2011 - 9:24PM

    Well Taxi Scheme is better than the BISP which is the money distributed for support without any income generation. I dont know why people feel ashamed of driving taxi where as when the educated lot goes to US and EU there they feel proud.Recommend

  • swear
    Jul 19, 2011 - 9:12PM

    age limt 21to 50 years but mor educted person who40+ r bayrozgar


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