Facilitating the people: Transport dept, Sindh Modarba sign agreement for Peoples' Bus Scheme

Existing public transport facilities are not enough to keep pace with the increasing population, says CM

KARACHI: A finance agreement was signed on Wednesday between the transport and mass transit department and Sindh Modaraba to launch an intercity bus project, the 'Peoples' Bus Scheme', in a ceremony at Chief Minister House.

Chief Minister Murad Ali Shah said that the traffic problem in Karachi is becoming more serious day by day and the existing public transport facilities are not enough to keep pace with the increasing population.
Intercity bus projects are the need of the hour, he said.

The ceremony was attended by Information and Transport Minister Nasir Hussain Shah, Karachi Mayor Wasim Akhtar, Planning and Development Chairperson Mohammad Waseem, Principal Secretary to the CM Sohail Rajput, Sindh Modaraba Chairperson Bilal Shaikh, Finance Secretary Hassan Naqvi and others.

The CM said that he has been briefed on the project by the transport minister. "I am quite satisfied that the transport minister has adopted a workable approach to solve the transport problem in the city," the CM said.

Speaking on the occasion, the transport minister said that intercity Peoples' Bus Scheme aims to strengthen transport facilities for the people of Karachi and it will support the mass transit systems like the Bus Rapid Transit System and the Karachi Circular Railway project.



The transport department, in collaboration with Sindh Modaraba, has launched the scheme in order to facilitate the people with certain incentives, he said.

Talking about the incentives, the transport minister said, "Sindh Modaraba shall charge a markup rate of Karachi Interbank Offered Rate plus 3.50%, while the transporters shall bear the burden of a flat 5% markup. The difference shall be borne by the provincial government."

He said that the loan tenure shall be a maximum of five years, adding that the transporters would pay 15% of the upfront cost of the vehicle while another 15% would be borne by the Sindh government as an interest-free loan, which will be repayable by the transporter within a year of the completion of the loan.



The transport minister said that the Sindh government would bear the cost of the insurance of the vehicle, which would be insured through the Sindh Insurance Limited and would be not more than 5% of the value of the vehicle.