THE federal government has decided to build border trade complexes at Wagah, Chaman and Torkham to reduce cargo dwell time, increase output and enhance the efficiency of transport corridors passing through Pakistan to neighbouring countries and beyond.

The objective is to facilitate landlocked countries and areas in Central Asia, western China, India and the Gulf with global trade.

These border posts will be integrated through a state-of-the-art system to reduce dwell time for cargo clearance and onward dispatch; monitor pilferage en-route; ensure proper exit of outbound cargo; keep a strict check on passengers’ baggage; and pave the way for a one-window operation at country and regional levels.

Apart from providing support facilities such as parking, restrooms, container yards, warehousing, banking and hotel accommodations, the border complexes will house regulatory agencies dealing with customs, immigration, border security, quarantine and narcotics etc.

The proposed facilities are part of an integrated transit trade management project for increasing regional trade and connectivity. The three complexes will cost $300m, of which the Asian Development Bank has committed $223m

The proposed facilities are part of an integrated transit trade management project for increasing regional trade and connectivity. The three complexes will cost $300m, of which the Asian Development Bank has committed $223m and ‘other development partners’ will share the remaining amount, official sources say.

A customs official said a recent meeting of the Executive Committee of the National Economic Council approved an amount of Rs31.686bn for the implementation of the project. Besides, the project also includes the rehabilitation of the Karachi and Bin Qasim ports.

The Federal Board of Revenue has also sent a summary to the prime minister for the establishment of a Land Port Authority (LPA) through an executive order. “We are waiting for summary’s approval,” a customs official said.

The LPA will oversee the construction, management and maintenance of the integrated border crossing points. It will act as a common platform for customs, immigration, quarantine and security authorities, as well as terminal operators, banks, shipping agencies and freight forwarders.

The concept is based on administration models being followed in countries like Singapore, India and Bangladesh. The LPA should ideally be a self-sustaining entity, with maximum operational and financial autonomy.

The potential transit cargo volumes to and from landlocked neighbouring and other emerging economies, including India and China, are huge. Pakistan has not been able to play a catalytic role in transit trade owing to its inadequate infrastructure.

Currently, Torkham is the biggest station for the Afghan Transit Trade. Official statistics show that around 75pc of cargo — or more than 34,000 containers — move via Torkham to Afghanistan and beyond. Torkham handles exports goods in the range of $1.2-2bn

The Chaman border station — the second-biggest transit station — clears around 7,000 containers per annum. It is also the nearest customs station to the sea ports of Karachi and Gwadar, which is expected to emerge as the hub of commercial trade with Central Asian States, Iran, China and the Far East.

The Wagah border station is the most economical route for India to transit goods to Afghanistan and Central Asia via Pakistan. The movement of transit goods from Afghanistan to India via Wagah has increased. In 2012, 285 Afghan trucks transported goods to India via Wagah. This number increased to 580 in 2013.

Currently, these three stations have space constraints in managing large volumes of transit cargo; inadequate facilities and non-integrated weighment equipment for scanning and tracking; mismatch of inbound v/s outbound goods; and untrained workforces.

Under the project, ICT equipment like electronics and integrated weigh bridges at Karachi, Torkham, Wahga and Chaman, in addition to cargo and vehicle scanners and image processors, will be installed.

Pakistan’s proximity to two of the world’s largest economies, China and India, makes it a potential transit trade hub. To improve trade with China, the customs station in Gilgit-Baltistan will also be connected to the China-Pakistan Economic Corridor project, the customs official added.

Recognising the Chahbahar seaport’s potential (which is not far away from Gwadar), Iran has designated it a free trade and industrial zone.

Published in Dawn, Business & Finance weekly, October 12th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play