ISLAMABAD: A high-level steering committee on Wednesday approved the establishment of the Land Port Authority (LPA) to oversee cross-border movement of goods and people.
The project, approved by Finance Minister Ishaq Dar, is part of an Integrated Transit Trade Management Systems (ITTMS) at border customs stations to facilitate trade with neighbouring countries.
Adviser to Prime Minister on National Security and Foreign Affairs Sartaj Aziz and other senior officials were also present at the meeting in which broad contours of the LPA were approved.
In January 2014, Prime Minister Nawaz Sharif constituted a 13-member steering committee, headed by Finance Minister Ishaq Dar, with five federal ministers and seven secretaries of relevant departments, to suggest solution for the establishment of land ports.
Since then, the committee held three meetings which led to the establishment of the LPA on Wednesday. Under the plan, three dry ports will be set up at Torkham, Chaman and Wagha border points to facilitate trade.
The LPA would oversee construction, management and maintenance of the integrated border crossing points and future extension.
The LPA would act as a common platform for all regulatory agencies, including customs, immigration, terminal operator, security, quarantine, banks, shipping agencies, freight forwarders etc and the concept would be based on various models of administration followed in countries, like Singapore, India and Bangladesh.
The LPA should be self-sustaining entity, with maximum operational and financial autonomy.
The successful implementation of the project will make Pakistan third country in South Asia after Bangladesh and India, having dedicated land ports for handling goods and passenger traffics at borders. The establishment of land ports was part of the Strategic Trade Policy Framework (2012-15) announced in December 2012.
On Wednesday, FBR Chairman Tariq Bajwa gave a detailed presentation to the steering committee about the ITTMS project which aims to make Pakistan a regional hub for transit trade.
A number of measures are being taken to channelise cross-border trade activities under this project for which the proposed LPA would play role of a facilitator and regulator.
During the meeting, it was decided that the LPA would be established through an executive order and its legal status would be confirmed later through an Act of Parliament. The land acquisition for the LPA at Torkham on the basis of 99-year renewable lease was already being undertaken.
Mr Bajwa briefed the meeting that ITTMS project had been included in FBR’s PSDP for fiscal year 2014-15.
The FBR presented the PC-I in August, 2014 to the Planning Commission. Pre-CDWP meetings were also held in October, 2014.
Based on the recommendations of the Planning Division, revised PC-1 has also been submitted. Technical Evaluation and Project Appraisal is ready and the FBR has designated focal persons on-site, to liaise with local administrations at Torkham, Chaman and Wahga.
Furthermore FBR, entrusted with the project has conveyed concurrence to Country Operation Business Plan (COBP), project financing facility to ADB, through Economic Affairs Division.
The ADB has committed $204 million for ITTMS project, primarily through its own resources, or by including some other development partner.
ADB Country Director Werner Leipach also addressed the meeting, giving an overview of the ADB’s financing plan for the project.
The ADB has mobilised its “Due Diligence team” for conducting socio-economic and environmental surveys for the project sites.
Finance Minister Ishaq Dar said the project carried great significance to transform Pakistan into a regional trade hub and its early implementation should be a priority for all the departments and organisations engaged in it.
He asked the Economic Affairs Division to coordinate with the ADB to firm up details about its funding. He emphasised project implementation should be initiated by May this year.
Published in Dawn, February 19th, 2015
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