INP-WealthPk

Public Transport Infrastructure in Pakistan – Lessons from China

November 10, 2021

By Muskan Naveed ISLAMABAD, Nov 10 (INP-WealthPK): Public transport infrastructure plays a key role in the economic advancement of a country, but in Pakistan this sector has not received due attention. The mass transit systems in the country often come under criticism because of their high costs as well as subsidy requirement. However, the benefits of mass transit overweigh its costs. The case against and for public transport The Lahore Metro Bus is cited to have received Rs4.1 billion in subsidy while the Metro Bus project in Multan was awarded a subsidy of Rs3.6 billion. The Islamabad/Rawalpindi Metro Bus has also been operating on a heavy subsidy of Rs 2.25 billion. Similarly, the Bus Rapid Transit (BRT) project in Peshawar is being running with a subsidy of Rs2.8 billion during fiscal year 2021-22. One of the major criticisms against public transit projects often roots from their need of subsidy; however, such projects operate through subsidies throughout the world. The pressure caused by subsidies on the exchequer is often pointed as a viable reason to not initiate such projects, but the narrative often originates from the wealthy elite who have private transport at their disposal. There has been a staggering increase of 225 percent in subsidies for the current fiscal year. However, the bulk of these subsidies is attributed towards the energy sector. Instead of cutting down subsidies to public transport projects or compromising on public transport infrastructure, the government can relieve pressure on the fiscal deficit by eliminating inefficiencies in the energy sector. The benefits of mass transit are believed to overweigh its costs. For example, the Lahore Orange Line enjoys heavy subsidies ever since its launch in 2020. However, per the government’s estimates at the time, 88 million people were expected to benefit from the service – saving them Rs60.4 billion per year in terms of transportation costs. Lessons from China China boasts one of the most expansive public transport infrastructures. Ever since the Chinese market reforms since 1978, the country has showed unprecedented growth. As the economy opened up, trade became an integral part which was partly facilitated by the transport network – which also grew with a fast pace. China has been regarded as a role model in the development of highway and high-speed railway networks. The contribution of the efficient transport and communications network come in the shape of facilitation of technological spillovers, access to amenities, lower cost of goods and people’s mobility. China has set up a 15-year expansion plan for its transport network in order to achieve its goal of doubling the size of the economy by 2035. The railway system is expected to reach 200,000km by 2035. This shows the integral part that transport is playing in the development of the Chinese economy. Pakistan can also follow the famed Chinese policy of imitation by replicating its models and commitment to the development of transport network if it wants to boost its economy. Moreover, China’s ambitious Belt and Road Initiative (BRI) is considered to be a massive step towards improving transport infrastructure in Pakistan. CPEC project is an expansive network connecting Pakistan’s Gwadar with Chinese city of Kashgar. The project is expected to benefit Pakistan on many fronts, and economic development through transport infrastructure is one of them. Pakistan can pave its path towards economic growth by modeling the Chinese infrastructure projects.