June 02, 2006	Friday	Jumadi-ul-Awwal 5, 1427

ISLAMABAD, June 1: The government has decided to reduce customs duty on prime movers for multi-axle trucks to enhance operational efficiency of the trucking fleet in the country.

An official told Dawn on Thursday that the Central Board of Revenue (CBR) had proposed to reduce customs duty on prime movers for multi-axle trucks having 280HP and above in CKD and CBU condition to zero per cent and 15 per cent, respectively.

According to the official, the decision to this effect has already been taken in the Economic Coordination Committee meeting. However, the decision would be formally announced in the next budget.

Road transport carried about 95 per cent of all freight in Pakistan. The truck fleet in Pakistan consists, predominantly of 6-wheel trucks, averaging more than 20 years old.

The combination of old trucks and the practice of overloading do not appear to be a sustainable position to meet the challenge of increase in demand for freight transport in this corridor and provide the service at internationally competitive rates.

The World Bank has proposed upgrading the trucking fleet in Pakistan by getting newer, safer, and less polluting trucks that could be achieved by both reduced duties on imported trucks and parts and tougher safety and axle limit enforcement.

The bank also proposed improved availability of medium term credits for the purchase of new trucks through increased flexibility in acceptable collateral and require truck owners to have full insurance coverage for the new trucks. This could not only be a stimulus to modernising fleets but also a needed measure for consolidation of industry.

In the long term, it was proposed that as trucks modernise and shipping volume increases, there would be a need to upgrade the trunk roads. This implies not only construction of additional lines but also the introduction of a limited access highway connecting Karachi and Lahore. It would also be important to introduce bypass roads, exclusive port access roads and peripheral truck terminals as part of the urban planning process.