Pakistan stands at crossroads and is facing significant financial pressure due to various reasons, the impact of COVID on the economies of all the world countries, including our great nation. This was stated by Tariq Haleem, past Vice President FPCCI and present Chairman UBG Standing Committee on Maritime Affairs, Communications and Gwadar Development.
He reckoned that inflation is in double digits (11.5 percent), the balance of trade deficit as of November 2021 stood at US$ 20.75 Billion. The One dolaar paraicty is touaching Rs. 178.50. The consumer price index has reached an all-time high in November 2021: 158.18 points.
He criticised that the incumbent Business Men Panel (BMP) in the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), that has been unable to play its due role in coordinating with the government / suggesting ways and means to improve the economy up to the implementation of suggestions on behalf of the Business Community of Pakistan.
He recalled the few projects/steps taken in their tenure and now paying good yields.
Water Management, Floods, Transport & Aquatic Tourism Report:
He has requested the Federal Minister of Maritime Affairs, Ali Zaidi, to form a Waterways Development Authority so that inland water management etc., can be adequately addressed and operations on the ground can commence at the earliest. When he was the Vice President at FPCCI in 2018, it published (in collaboration with Commander Naeem Sarfraz) a very comprehensive report that provides solutions.
Pakistan has no shortage of water whatsoever.
We have sufficient water for the next about 100 years. Pakistan receives about 140 – 145 million acres feet (MAF) of water per year. About 20 MAF goes into the sea, and about 40 MAF has wasted due to mismanagement in the inland waterways, canals etc. The need of the hour is to develop inland waterways for the transport of goods, resulting in multiple benefits for the country, including but not limited to water management, flood control, better output from the agriculture sector, marine tourism, and the creation of thousands of jobs etc., etc. If this is implemented hand in hand with improvements in rail transport, this will Inshaallah turn around the economy of Pakistan, he remarked.
Transhipment / Transit Cargoes:
UBG already submitted a concept paper to the Ministry of Maritime Affairs on “Transshipment / Transit Zone and Stock & Sale Zone”. If this project is approved, we will Inshaallah also have extra cargoes moving from the CIS States through initially from Karachi Port Trust and subsequently from Gwadar Port; he added
We are confident that roughly about 20 to 30 billion dollars worth of trade will pass through Pakistan by road, rail and sea. He added that this would mean approximately 2 million-plus containers (TUES) moving through our seaports both in and out. Presently 3.2 million TEUs, both Export & Import, are moving through KPT & PQA.
This will also prove to be a tremendous growth to our economy, create jobs and ports, terminals both on the dock and off the pier will also benefit.
At present, container freight rates are very high, but if container volumes increase substantially, then freight rates will come down substantially, he suggested.
Gwadar Port:
UBG group, while heading FPCCI, signed an MOU with China Overseas Ports Holding Company (COPHC), the concession holders of Gwadar Port and got an office in their new building for FPCCI free of cost. He said, “UBG has started working on Transshipment cargoes to Afghanistan via Gwadar Port. At this time, we are the only group moving the Transshipment of fertiliser cargoes in shiploads at Gwadar Port. We are also working on other cargoes, and we expect that Gwadar Port will be flying in the next 2 to 3 years. We must remember if “CPEC is the Crown, then Gwadar is the Jewel in the Crown”.
Once Gwadar Port is properly operational due to Inshaallah mostly UBG efforts, then there will also be significant job openings not only for locals but for all Pakistanis.