WTO warns Pakistan on congestion
The World Trade Organization (WTO) has blamed persistent congestion at Pakistan's major ports for 'hampering' the country's competitiveness.
According to the report, frequent port congestion coupled with poor internal transport systems and 'cumbersome' customs clearance procedures add to the costs of doing business in Pakistan.
The report stated that congestion at the ports of Karachi and Qasim "increases waiting times and inflates shipping and trade costs."
Karachi is Pakistan's largest sea port, handling some 75% of the country's sea-bound cargoes.
"The long dwell times and internationally high port entry charges (at Karachi) coupled with the inefficient and costly practices of the Dock Labour Board are major drags on competitiveness," said the WTO.
The WTO also calculated that 'poor transport performance' in all modes, including road and rail, is estimated to cost the Pakistani economy 4-6% of gross domestic product (GDP) a year.
A separate World Bank study, meanwhile, has stated that Pakistan needs to inject at least 1% of GDP over the next five to seven years to modernize the country's transport and logistics sectors.
According to trading partners such as Hong Kong, trade liberalization in transport and logistics-related services are essential for the development of an extensive transport infrastructure in Pakistan.
Other trading partners such as Japan has urged Pakistani authorities to enhance transparency of its 'cumbersome' customs clearance regime.
According to the report, frequent port congestion coupled with poor internal transport systems and 'cumbersome' customs clearance procedures add to the costs of doing business in Pakistan.
The report stated that congestion at the ports of Karachi and Qasim "increases waiting times and inflates shipping and trade costs."
Karachi is Pakistan's largest sea port, handling some 75% of the country's sea-bound cargoes.
"The long dwell times and internationally high port entry charges (at Karachi) coupled with the inefficient and costly practices of the Dock Labour Board are major drags on competitiveness," said the WTO.
The WTO also calculated that 'poor transport performance' in all modes, including road and rail, is estimated to cost the Pakistani economy 4-6% of gross domestic product (GDP) a year.
A separate World Bank study, meanwhile, has stated that Pakistan needs to inject at least 1% of GDP over the next five to seven years to modernize the country's transport and logistics sectors.
According to trading partners such as Hong Kong, trade liberalization in transport and logistics-related services are essential for the development of an extensive transport infrastructure in Pakistan.
Other trading partners such as Japan has urged Pakistani authorities to enhance transparency of its 'cumbersome' customs clearance regime.