INP-WealthPk

Inefficiencies in port connectivity undermine Pakistan’s trade potential

November 25, 2024

Ayesha Saba

Inefficiencies in port connectivity have hindered Pakistan's economic growth, underscoring the need to devise a national logistics plan for modernizing infrastructure, reducing trade costs, and boosting global competitiveness for sustainable growth.

Talking to WealthPK, Manager of Public Relations at the Karachi Port Trust Ahmed Bilal said currently, most of the traffic at the Karachi Port flowed through the congested urban roads. He pointed out that the existing motorways and national highways were not directly connected to the port, forcing the port traffic to pass through Karachi’s city center, leading to gridlocks and slowdown in the cargo movement. This lack of streamlined connectivity between the port and key transportation hubs restricts the operational efficiency and drives up the costs for businesses relying on imports and exports.

He said that delays in transportation were detrimental to the logistics sector, creating a ripple effect that impacted the timeliness of goods reaching their destinations, both locally and internationally. In a global economy where time is a critical factor, Pakistan’s inefficiencies in port connectivity are undermining its trade potential. According to Ahmed Bilal, the Karachi Port Trust (KPT) has been actively pursuing the goal of obtaining direct access to the motorways for efficient freight transportation. However, the plans drew a blank due to the lack of collaboration among the local, provincial, and federal organizations.

Two circular roads were developed on the Jinnah Bridge and Korangi Road, Karachi by the KPT on its own to address this issue. “This infrastructure would establish an efficient connectivity between the ports and various inland destinations, such as industrial zones, markets, and transportation hubs. This, in turn, would attract more international trade and investment, fueling economic growth and development.” Bilal argued that the government must develop a comprehensive national logistics plan to address these infrastructure gaps. Coordination between the federal, provincial, and local authorities is seen as a key component in improving Pakistan’s port connectivity and overall trade efficiency.

According to the official data, cargo handling at the KPT saw a significant 23.43% increase at the end of Fiscal Year 2023-24, reaching a total of 51.65 million tons. This includes 40.24 million tons of dry cargo, a 31.39% rise, and 11.41 million tons of liquid bulk cargo, up by 1.69%. In comparison, the previous year's total was 41.85 million tons. Export cargo saw a remarkable 47.16% increase, closing at 18.80 million tons, compared to 12.78 million tons in FY 2022-23.

Credit: INP-WealthPk