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Time of India
04-07-2025
- Business
- Time of India
PM Gati Shakti cuts India's logistics costs by 5% of GDP: NCAER, ET Infra
Advt Advt India's logistics costs have come down to betweenof GDP, significantly lower than previously assumed figures of, according to studies carried out by the National Council of Applied Economic Research (NCAER). The drop reflects the success of thefor infrastructure development, as per a report titled Gati Se Pragati, released on the country's logistics costs remain above global benchmarks ofseen in developed economies. This positions India favourably for achieving world-class logistics efficiency through coordinated infrastructure development. Simultaneously, India's improvement in the World Bank's Logistics Performance Index—from 44th to 38th in 2023—indicates positive momentum, though the report states substantial scope remains for further India's most ambitious infrastructure coordination initiative, fundamentally reshaping the nation's approach to connectivity and economic development. The report reveals that while the programme has established robust institutional frameworks and achieved initial coordination successes, substantial opportunities remain to accelerate India's economic transformation through targeted interventions across its seven infrastructure a holistic approach encompassing, each contributing distinct value to India's connectivity programme's targets are ambitious: expanding, increasing, establishing, and achieving comprehensiveThese targets align with India's broader economic objectives while addressing critical infrastructure bottlenecks that have historically constrained growth. However, significant implementation challenges persist across all seven engines, including, andbetween central and state analysis reveals that while the institutional framework exists, translating coordination mechanisms into accelerated project delivery requires enhanced focus on, andThe economic impact assessment demonstrates substantialfrom infrastructure investments, with each rupee invested generating betweeneconomic output, depending on the infrastructure type. Roads and railways exhibit the highest multipliers, while emerging sectors likepresent significant untapped beyond direct economic impact, encompassing, and enhancedfor citizens. Strategic interventions identified for optimal Gati Shakti implementation include establishing, creating, enhancingthrough innovative models, and strengtheningacross implementing agencies, the report success ofultimately depends on, andof coordination mechanisms to emerging challenges and opportunities, the report added.
Business Recorder
02-07-2025
- Business
- Business Recorder
Unlocking Pakistan's Logistics Potential on National Logistics Day
TEXT: As we mark National Logistics Day, it is time to reflect on the backbone of Pakistan's economy — the logistics and transportation sector — and to chart a path forward. Currently, this sector contributes over 12% of GDP and employs 6% of the country's workforce, handling 98% of Pakistan's transportation needs. Yet, despite its significance, Pakistan's road logistics sector is mired in inefficiency, underinvestment, and outdated governance frameworks. The latest Pakistan Business Council (PBC) report 'Pakistan Road Logistics, Challenges, Opportunities and Policy Response'-2025 paints a sobering picture: Pakistan's Logistics Performance Index (LPI) has dropped from 2.42 in 2018 to 2.3 in 2025, ranking far behind regional countries India (rank 44), Iran (100), and Bangladesh (64). The above report echoes the same policy recommendations as detailed in this article in its 'Prioritized Recommendations'. The lack of an integrated national transport policy and a dedicated Ministry of Transport and Logistics has hampered coordinated action. Responsibilities are fragmented across federal, provincial, and quasi-government entities, leading to poor planning and execution. This structural weakness allows informal operators, backed by politically influential sectors to evade regulations — further distorting the market and discouraging formal players. In the PBC Report: 'Dedicated Ministry or Focal Authority for the Logistics Sector: It is important to realize that logistics is an interconnected sector, and one mode is not independent of the other. Therefore, a focused approach is required to help the sector grow. One glaring issue is the non-implementation of Axle Load regulations. Overloading is a major cause of premature road infrastructure failure and road accidents. The World Bank estimates that road accidents cost Pakistan 4.5% of GDP, equivalent to $12.5 billion annually. Strict enforcement of Axle Load laws, including vehicle impoundment and cargo seizure for violations, is essential to safeguard both infrastructure and lives. In the PBC Report: 'Axle Load Enforcement: 1) Strengthen Regulations: Enforce axle load limits uniformly across all regions to minimize road damage and extend infrastructure lifespan. 2) Monitoring and Penalties: Implement weighbridges equipped with automated systems for accurate load monitoring and impose strict penalties for violations'. Despite the best intentions, investments in Pakistan's motorways have largely failed to deliver their intended economic benefits. Many motorways built under BOT arrangements either prohibit overloaded trucks—to protect the infrastructure for which investors are liable—or allow such vehicles, resulting in severe damage and escalating repair costs (major maintenance now required in the second year, instead of the seventh). The motorway network has thus become a white elephant, unable to service its debts or justify the public and private investments made. Motorways cannot be financially viable on passenger traffic alone. Their full commercial and economic potential depends on carrying freight traffic. Yet freight operators avoid these roads, preferring to run overloaded on national highways where axle load limits are not enforced—causing massive damage to both highway infrastructure and the public exchequer. Another pressing need is the modernization of Pakistan's trucking fleet. With only 300,649 registered trucks — compared to India's 12.5 million — the sector suffers from outdated, fuel-inefficient vehicles that raise costs, emissions, and road safety risks. The PBC recommends developing green financing tools to support fleet renewal with Euro-5 compliant and electric vehicles, a move that would also align with emerging global climate regulations like the EU Green Deal. In the Pakistan Business Council Report: 'Fleet Modernization and Financing: Expand Access to Credit: Develop low-interest loan schemes and financial products tailored to small and medium-sized operators, enabling them to upgrade their fleets'. The logistics firms are under immense pressure of excessive rate of taxes, the federal government's recent decision in the 2025-2026 budget to increase the withholding tax on logistics services from 4% to 6%. The 6% on revenue translates to more that 50% of the thin profit margin in this sector. Normal tax rate for companies is about 29% of the profit in Pakistan for other businesses. Even 4% was excessive than 29%. This decision, if implemented, will deal a devastating blow to the service sector — particularly to an already struggling goods transport industry that plays a critical role in Pakistan's economy. This increase will push small and medium-sized transporters out of the formal tax net in a desperate attempt to keep their businesses afloat. This will inevitably undermining both government revenue collection and the rule of law. Roadside security is another concern. Roadside robberies and thefts pose serious risks, particularly in key bottleneck areas. The government must step up security patrols and protect the lifelines of our economy. The path forward is clear: • Enforce Axle Load limits strictly • Provide targeted green financing for fleet upgrades • Establish a unified Ministry of Transport and Logistics to drive reforms • Set a supporting Rate of Tax to logistics, similar to other businesses and industries. By tackling these issues with urgency, Pakistan can transform its logistics sector into a regional powerhouse — supporting exports, creating jobs, and enhancing national competitiveness. On this National Logistics Day, let us commit to unlocking the sector's full potential. RanaAsimShakoor Chairman, FOAP Copyright Business Recorder, 2025
Indian Express
05-06-2025
- Business
- Indian Express
On World Environment Day, Indian Railways reaffirms its commitment to sustainable development
Every time you choose to travel by train, you are not just choosing comfort or convenience — you are choosing a cleaner, greener Bharat. More than 700 crore people chose to travel in Indian Railways last year. It's our lifeline, and a green promise for tomorrow. Indian Railways is helping the country move closer to the Panchamrit goals set by Prime Minister Narendra Modi — net zero by 2070. It is enabling this through a multi-pronged approach: By shifting traffic from road to rail and powering operations with cleaner, greener energy sources. Together, these moves are helping India decarbonise its economy at scale. In 2013-14, Indian Railways carried about 1,055 million tonnes of cargo. This has increased to 1,617 million tonnes in 2024-25, making our railway the second-largest cargo-carrying railway in the world. Using the computations done by experts, this shift of cargo from road to rail has helped our country save over 143 million tonnes of CO2 emissions. That's like planting 121 crore trees. Transporting goods by rail costs nearly half of what it does by road. This means big savings, not just for businesses, but for the entire economy. This shift has helped save Rs 3.2 lakh crore in logistics costs over the past decade. Railways are also much cleaner, releasing 90 per cent less carbon dioxide than trucks. That's less smoke in our skies and cleaner air for us. This road-to-rail transition has saved us 2,857 crore litres of diesel, roughly translating to savings of Rs 2 lakh crore in fuel costs. India imports oil. Therefore, it makes strategic sense to electrify our transportation sector so that our dependence on imports is reduced. In the 60 years before 2014, Indian Railways electrified 21,000 km of track. And in the past 11 years, we have electrified 47,000 km. Today, 99 per cent of our broad-gauge network is electrified. Indian Railways is increasingly using green energy for stations, factories and workshops. Now, it is working with states to get more green energy for running the trains. This will all lead to India achieving its net zero goal. Building on this momentum, dedicated freight corridors (DFCs) are electrified, high-capacity railway lines designed exclusively for goods transport. With 2,741 km operational, DFCs have eased congestion on roads and significantly reduced diesel consumption and carbon emissions. India is also embracing modern, zero-emission technology like the hydrogen-powered train. The first train will run between Jind and Sonipat in Haryana and carry up to 2,600 passengers. It will be the most powerful and longest hydrogen train in the world. India is proving that economic growth and ecological responsibility can, and must, go hand in hand. According to the World Bank's Logistics Performance Index 2023, India now ranks 38 out of 139 countries, a jump of 16 places since 2014. The expansion of railway electrification has reduced costs and emissions. It has also increased speed and capacity, helping India move closer to world-class logistics standards. PM Modi set 2030 as the year to achieve net zero for Indian Railways. Due to the accelerated electrification and large-scale shifting of cargo from road to rail, Indian Railways is on track to achieve net zero (scope 1) within 2025. On this World Environment Day, Indian Railways reaffirms its commitment to sustainable development. Every electrified track, every solar panel placed, and every freight container off the road is a promise — to our people and our planet. The writer is Minister of Railways, Electronics and Information Technology, and Information and Broadcasting, Government of India
New Indian Express
30-05-2025
- Business
- New Indian Express
Odisha set to reclaim maritime legacy with bold policies
Every year, Odisha proudly celebrates its rich maritime heritage through the grand festival of Balijatra, held on the banks of the Mahanadi River in Cuttack. This vibrant festival commemorates the historic voyages of the Sadhabas, skilled mariners who once set sail on majestic ships called Boitas, forging trade and cultural ties with present-day Indonesia, Thailand, Cambodia, and Vietnam. Echoes of these ancient maritime connections still resonate today in shared architectural motifs, artistic traditions, and linguistic traces, a testament to Odisha's enduring maritime influence. Though shifts in trade routes and colonial disruptions diminished Odisha's prominence on the seas, its seafaring spirit has never faded. Today, this proud legacy inspires the vision of 'Viksit Odisha' that reclaims its historic maritime legacy while driving India's economic resurgence. Globally, maritime economies symbolise a nation's logistical strength and trade prowess. Many developed countries have adopted port-led development as a cornerstone of their economic strategies. In fact, over 80 per cent of freight in these nations is transported via waterways, capitalizing on their vast coastlines. India, with a coastline stretching over 7,500 km, boasts of 13 major ports and more than 200 non-major ports. Yet, only about 10 pc of freight movement occurs via waterways, revealing immense untapped potential. Encouragingly, port efficiency in India has seen significant improvement, with average ship dwell time now on par with Singapore and even better than that of the United States which is 7 days, as reported in the World Bank's Logistics Performance Index. Recognising the sector's strategic value, the Government of India launched the Sagarmala Programme in 2015, aimed at modernising ports, enhancing connectivity, promoting port-led industrialisation, and developing coastal communities and inland waterways. Building on this momentum, the Maritime India Vision 2030 has identified over 150 initiatives across themes including infrastructure, logistics efficiency, shipbuilding, coastal shipping, innovation, sustainability, and global collaboration.
Business Recorder
30-05-2025
- Business
- Business Recorder
Pakistan's blue economy: an ocean of missed opportunity
Pakistan's coastal waters hold the key to a multi-billion-dollar economy; nonetheless, this potential remains largely untapped. The country's blue economy has yet to find a meaningful place in national economic planning. This lack of vision risks Pakistan forfeiting its rightful share of the global blue economy, which is expected to surpass USD3 trillion by 2030. According to the United Nations Development Programme (UNDP), Pakistan's blue economy contributes a meagre 0.4 percent to the national GDP's – an astonishingly low figure considering the country's 1,050-kilometre coastline and a 290,000 square kilometre Exclusive Economic Zone (EEZ). In stark contrast, other regional countries like Bangladesh and Iran have made significant strides in harnessing the wealth of their coastal resources. By leveraging its robust fisheries sector, Bangladesh shipbuilding and shipbreaking sectors generate thousands of jobs and significant export revenue, contributing meaningfully to the national economy. Similarly, Iran, with 30 ports along its coastline, handles 235 million tons of maritime traffic. It has dedicated USD 3.7 billion to develop and digitalise its commercial ports in 2025, upscaling its potential in maritime transport. With sturgeon farming, the Iran Fisheries Organisation has exported 18.5 tons of farmed caviar and 4,600 tons of sturgeon meat in 2023. Pakistan's poor maritime governance, underinvestment, and lack of integrated policy prevent it from securing a share in the global marine economy boom. Pakistan's blue economy crisis is mainly infrastructural, as indicated by its exclusion from the Logistics Performance Index. The country's strategic coastal position enables it to function as a regional transit hub through its three major ports: Port Qasim, Karachi Port, and Gwadar. Nonetheless, Port Qasim suffers from poor logistics operations and underused facilities, as its outdated infrastructure operates below 50percent of its maximum potential. Despite handling high traffic volumes, Karachi Port faces persistent congestion and limited expansion, operating below optimal capacity. Gwadar Port holds significant value but remains disconnected from Pakistan's industrial and energy networks. Pakistan needs to invest modernisation investments, improved logistics, and streamlined governance to maximise the potential of its ports to attain recognition as a leading maritime hub. Similarly, the fisheries sector of Pakistan is chronically underperforming. The country ranks 35th worldwide on the illegal, unreported, and unregulated (IUU) Fishing Risk Index because its waters continue to experience widespread IUU fishing activities. Moreover, post-harvest losses reach 35 percent because the sector lacks adequate cold storage facilities and is experiencing poor handling practices. The fish exports from Pakistan are 136,000 metric tonnes with a value of USD 400 million, despite having the potential to reach USD 2 billion. According to the World Bank, revenues would increase by 60 percent if Pakistan implements better port management along with regulatory reform and technological improvements. Beyond trade and fisheries, Pakistan's blue economy holds immense potential in Marine Renewable Energy. Pakistan's coastline, particularly the 17 major creeks of the Indus Delta, offers significant opportunities for tidal energy generation. The estimated power output from tidal energy projects in these regions amounts to 900 to 1,100 MW, offering a renewable solution for coastal energy. The EEZ of Pakistan holds potential for the development of offshore wind and wave energy projects. Yet these possibilities remain absent from Pakistan's primary energy policy. Pakistan also has considerable scope in seabed mining and blue bio-technology. Pakistan's EEZ holds vast offshore deposits of oil, gas, and minerals, awaiting extractions. The Indus and Makran offshore areas contain hydrocarbon resources, while Murray Ridge has potential for hard rock metallic minerals. Moreover, the blue bio-technology sector leverages marine bio-diversity to develop pharmaceuticals, dietary supplements and bio-based products, offering promising applications in disease treatment. The market for this industry worldwide will expand from USD 5.65 billion in 2024 to USD 10.54 billion by 2032 at a 7.15 percent annual growth rate. Pakistan, however, lacks a roadmap or institutions to support innovation in this field. The human cost of this inaction is also worth noting. Pakistan's coastal communities, particularly in Sindh and Baluchistan, face high rates of poverty, underemployment, and environmental vulnerability. A well-governed blue economy could offer diversemarine livelihoods, skills development, and employment in sectors ranging from aquaculture to eco-tourism. Instead, years of ad hoc planning have left these communities dependent on informal fishing practices, vulnerable to climate shocks, such as coastal erosion and salinization. In short, unlocking the blue economy's potential is not a matter of discovering new resources but managing existing ones more wisely. It requires investment in coastal infrastructure, digitised port logistics, vocational training for a marine workforce, and research collaboration with universities and international partners. The private sector must also be incentivised to invest in value-added industries like seafood processing, aquaculture, and sustainable tourism. With the right ecosystem, the blue economy could become a new engine for Pakistan's economic diversification, reducing reliance on remittances and traditional agriculture while aligning with the country's climate goals. Copyright Business Recorder, 2025
