Transport sector resilient

Sector manages to achieve substantial progress, despite economic woes

KARACHI:

Pakistan’s transport and communication sector has demonstrated remarkable resilience and growth, despite the challenging economic conditions prevailing in the country.

In contrast to the ongoing economic meltdown, the sector has managed to achieve substantial progress.

The operating revenue of Pakistan International Airlines (PIA), which boasts of a fleet of 35 airplanes, displayed a surge of 99.6% during CY22, reaching Rs172.04 billion compared to Rs86.18 billion in the previous year.

However, its operating expenditure also registered a substantial increase of 81.2%, totaling Rs183.34 billion during the same period, said Finance Minister Ishaq Dar while presenting the Pakistan Economic Survey 2022-23 earlier this week.

As per PIA’s annual earnings report for the year ended December 2022 sent to the Pakistan Stock Exchange (PSX) on May 19, the airline posted a consolidated loss of Rs97.23 billion and an unconsolidated loss of Rs88 billion with year-on-year increase of 82% and 76%, respectively.

Under the transport and communication sector, the National Highway Authority (NHA)’s portfolio in the Public Sector Development Programme (PSDP) for 2022-23 comprised 115 projects with a budgetary allocation of Rs118.40 billion, said the finance minister.

Among those projects, several road infrastructure initiatives were underway as part of the China-Pakistan Economic Corridor (CPEC), including the Zhob-Kuchlak (298 km), Khuzdar-Basima (110 km), Nokundi-Mashkhel (103 km) and Hoshab-Awaran M8 (146 km) routes, all of which were at different stages of implementation.

Meanwhile, Pakistan Railways reported gross earnings of Rs39.95 billion for July-March FY23. It demonstrated a slight decline from earnings of Rs43.73 billion in the previous year.

In the maritime sector, Pakistan National Shipping Corporation (PNSC) experienced a staggering 879% increase in its after-tax profit, with earnings amounting to Rs23.96 billion in Jul-Mar FY23. The notable improvement reflected a significant leap from Rs2.45 billion in the previous year.

Among port activities, the Port Qasim Authority (PQA) reported a decrease of 27% in the volume of import cargo handled during July-March FY23. Total cargo handling stood at 26.15 million tonnes compared to 35.78 million tonnes last year.

Similarly, the export cargo handled during the same period stood at 5.39 million tonnes, showing a decrease of 15% from 6.37 million tonnes in the previous year.

At Karachi Port, the cargo and container handling from July-March FY23 came in at 31.79 million tonnes, demonstrating a 20% decrease from the 39.71 million tonnes handled in the previous year.

Published in The Express Tribune, June 11^th, 2023.

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