South Asian Business news and information

Pakistan has received assurance from World Bank, of a 1.8 billion dollar fund for its National Trade Corridor project. The total project would cost 6 billion dollars. I am quoting from the report published in All Headline News:

“A World Bank team that had a meeting with Adviser to the Prime Minister of Pakistan on Finance Dr Salman Shah in Islamabad on Friday committed that the bank would provide $300 million a year as support to the program, the Dawn, a local newspaper reported.

The program has been prepared through a year-long consultation process with various ministries and corporations and key international lenders including the World Bank, Asian Development Bank and Japan Bank for International Cooperation (JBIC).”

Pakistan’s existing transport system is not in a very good condition. Thus, it takes a lot of time to distribute goods to different parts of the country. The container dwelling time at Pakistan ports is 7 days which is three times more compared to a developed country. Road transport is the major means of distribution. Compared to the developed countries it takes twice more time to send goods by roads. Under this trade corridor all the major ports and highways will be modernized.

Good transportation system is one of major requirements for export and trading. Pakistan is connected to three countries by land: Indian on the east, central Asia on the west and China on the north. It is a blessing for Pakistan. Through exporting goods to these three countries it can earn huge foreign currency. Pakistan’s government officials are expecting that through establishing this new trade corridor the country would be able to make $250 billion by 2030. In addition, Pakistan’s tourism sector can also reap the benefit of the project.

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