Urban Transport Policy Punjab pakistan

Urban Transport Policy Study for Five Cities of Punjab Province

DAINICHI CONSULTANT INC.3-1-21 YABUTA MINAMI GIFU 500-8384, JAPAN

TEL: +81-58-2712502 FAX: +81-58-2712564

FINAL REPORT

November 2008

Urban Transport Policy Study for Five Cities of Punjab Province Final Report

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Table of Contents

Letter of Transmittal Abbreviation/ Acronyms Executive Summary

1. Introduction ……………………………………………………………. 1-1 1.1 Objectives of the Study …………………………………………………. 1-1 1.2 Scope of Work …………………………………………………………... 1-1 1.3 Methodology ……………………………………………………………. 1-1 1.4 Stakeholders Consultation ………………………………………………. 1-1

1.4.1 Identified Stakeholders ………………………………………….. 1-2 1.4.2 Stakeholders Communication Committee ………………………. 1-3 1.4.3 Inter-Stakeholders Workshop …………………………………… 1-3 1.4.4 Public Consultation …………………………………………….... 1-4

1.5 Report Composition ……………………………………………………... 1-4 2. Background of the Study ………………………………………... ……. 2-1 2.1 Geography of Pakistan …………………………………………………... 2-1 2.2 Demography …………………………………………………………….. 2-2 2.3 Economy ………………………………………………………………… 2-5 2.4 Overview of the Punjab Province ……………………………………..... 2-8 2.5 Current General Situation in the Five Big Cities of Punjab …………...... 2-10 3. Over-View of the Transport Sector …………………………………… 3-1 3.1 General Background …………………………………………………….. 3-1 3.2 Road Network …………………………………………………………… 3-1 3.3 Road Density …………………………………………………………….. 3-3 3.4 Administrative Road Classification …………………………………….... 3-3 3.5 Passenger Trip on Road …………………………………………………. 3-4 3.6 Low Quality of Road Transport Services ……………………………….. 3-4 3.7 Challenges ……………………………………………………………….. 3-5 3.8 Regional Dynamics and the Key Government Initiatives ………………. 3-5 3.9 National Trade Corridor …………………………………………………. 3-6 3.10 Motorization ……………………………………………………………... 3-7 4. Typical Transportation Related Issues in Punjab and its Five

Big Cities ……………………………………………………………….. 4-1 4.1 General ………………………………………………………………... 4-1 4.2 Rapid Urbanization and the Associated Pressure on the

Urban Transport ………………………………………………………... 4-1 4.3 Low Levels of the Urban Service Delivery ………………………… 4-3 4.4 Inadequate Public Transport Service ……………………………………. 4-3 4.5 Congestion in Urban Areas ……………………………………………... 4-3


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4.6 Overloading ………………………………………………………… 4-4 4.7 Premature Roads Failure ………………………………………………… 4-4 4.8 Drainage Issues ………………………………………………………….. 4-4 4.9 Parking Issues ……………………………………………………………. 4-5 4.10 Inadequate Relationship Between Land-Use and Transportation ………. 4-5 4.11 Mix of Traffic ……………………………………………………………. 4-5 4.12 Encroachments …………………………………………………………... 4-6 4.13 Road Safety Problem …………………………………………………….. 4-6 4.14 Ineffective and Obsolete Traffic Laws …………………………………... 4-7 4.15 Pollution …………………………………………………………………. 4-7 4.16 Insufficient Budget ……………………………………………………… 4-8

5. Urban Transport Policy/Planning Assessment ………………………. 5-1 5.1 General Over-View of the Existing Situation Regarding the

Functioning of the Transportation Sector Related Institutions in the Punjab Province ……………………………………………………... 5-1

5.2 Policy and Plans in Urban Transport Development…………………….… 5-3 5.3 Policy Making Institutions ………………………………………………. 5-4

5.3.1 Provincial ………………………………………………………... 5-3 5.3.2 Federal …………………………………………………………... 5-4

5.4 Recommendations tor the Strategic Policy Directions ………………….. 5-6

6. Urban Transport Institutional Assessment …………………………... 6-1 6.1 The Existing Framework for the Urban Transport Planning

and Management ………………………………………………………... 6-1 6.2 The Provincial Motor Vehicles Ordinance, 1965 6.3 Assessment of Road and Transport Agencies……………………………. 6-1 6.4 The Institutional Development and

Strengthening ………………………………………………………. 6-10 6.5 Conclusions ……………………………………………………………. 6-12 6.6 Comparable International Experiences ………………………………... 6-12 6.7 The Recommendations for the Directions and Processes for the

Institutional Reforms in the Transport Sector ………………………… 6-13 7. Development of an Institutional Realignment or Reform Plan …... 7-1 7.1 Responsibilities And Constraints Of Existing Agencies And

Proposed Agency …………………………………………………… 7-1 7.2 Establishing of The Metropolitan Transport Authorities (MTAS) ……… 7-2 7.3 Implementation Action Plan……………………………………………… 7-3 7.4 Develop Policies and Planning Strategies……………………………… 7-7

8. Public Transport Regulatory Assessment …………………………… 8-1 8.1 Transport Regulatory and Existing Framework ……………………….. 8-1 8.2 Identification Of The Key Issues In The

Current Regulations ……………………………………………………... 8-1 8.3 Recommendations ………………………………………………………... 8-3


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8.4 Recommended Amendments …………………………………………... 8-4 9. Urban Transport Financing Assessment …………………………….. 9-1 9.1 Existing Financing Mechanism …………………………………………. 9-1

9.1.1 Transport Infrastructure and Services ………………………….... 9-1 9.1.2 Transport Fleet and Related Facilities …………………………... 9-1 9.1.3 Federal Divisible Pool Taxes ……………………………………. 9-4 9.1.4 Straight Transfers to Province ………………………………….... 9-4 9.1.5 Federal Grants ……………………………………………………. 9-4 9.1.6 Provincial Own Receipts ………………………………………… 9-4 9.1.7 Local Government Finance ……………………………………… 9-6 9.1.8 Vertical Distribution of Resources ……………………………… 9-6 9.1.9 Spending on Construction and Maintenance of Roads …………. 9-7 9.1.10 Urban Transport Financing for Five Cities ……………………... 9-10 9.1.11 City Government Budget for Lahore ……………………………. 9-11 9.1.12 City Government Budget for Faisalabad ………………………… 9-14 9.1.13 City Government Budget for Gujranwala ……………………….. 9-16 9.1.14 City Government Budget for Multan …………………………... 9-18 9.1.15 City Government Budget for Rawalpindi ………………………. 9-19

9.2 Gaps and Constraints ………………………………………………….... 9-20 9.3 Potential Options and Sources of Funding ……………………………… 9-20 9.4 Public Private Partnership ……………………………………………….. 9-25 9.5 Recommended Sustainable Financing Mechanisms ……………………. 9-25 10. Draft Punjab Urban Transport Policy ………………………………... 10-1 10.1 Vision Of Punjab Cities Of The

Future Transport Development …………………………...……...……... 10-1 10.2 Objectives of a Sustainable Urban

Transport Development System …………………………………………. 10-1 10.3 Policy …………………………………………………………………… 10-1 10.4 Process ……………………………………………………………………. 10-3 APPENDIX

3-1-21 Yabuta Minami

Gifu 500-8384, JAPAN Tel: +81-58-2712502

Fax: +81-58-2712564

DAINICHI CONSULTANT INC.

Ref: \UU\11thNovember-08\ Date: November 11, 2008

Dr. Nasir Javed Project Director The Urban Unit Lahore. Sub: Urban Transport Policy Study for Five Cities of Punjab Province – Final Report Dear Sir,

Dainichi Consultant Inc. takes pleasure in attaching for your consideration the Final Report for this study.

The subject report is in light of an in-depth analyses and interactive discussions and meetings with the stakeholders during the course of the study.

We would like to take this opportunity to thank you for the co-operation given by yourself, your staff, our team members and all stakeholders during the course of this study.

We hope that our findings and recommendations may make a worthwhile contribution to the development of the urban transport issues in Punjab.

Thank you for your consideration.

Yours truly,

Dr. Shahid Nasir Dainichi Consultant Inc. Encl.: a. Five Sets of Report

b. Soft copy of the Report (CD enclosed)


Dainichi Consultant Inc.

LIST OF ABBREVIATIONS/ ACRONYMS

ADP - Annual Development Program

CDG - City District Government

CDGL - City District Government Lahore

CWD - Civil Works Department

DCI - Dainichi Consultant Inc.

DRTA - District Road Transport Authority

FUTS - Faisalabad Urban Transport Society

IRP - Institutional Realignment Plan

ISCC - Inter-Stakeholders Communication Committee

LDA - Lahore Development Authority

PHA - Parks and Horticulture Authority

PTCL - Pakistan Telecommunication Company (Pvt.) Ltd.

PUTP - Punjab Urban Transport Policy

GoPunjab - Government of Punjab

NGO - Non-Governmental Organization

NMT - Non-Motorized Traffic

P&DD - Planning and Development Department

HUD - Housing and Urban Development

PHED - Public Health Engineering Department

LG&RD - Local Government and Rural Development

DHA - Defence Housing Authority

SCC - Stakeholders Communication Committee

SNGPL - Sui Northern Gas (Pvt.) Ltd.

PLGO 2001 - Punjab Local Government Ordinance 2001

TMA - Town Municipal Administration

TEPA - Traffic Engineering Planning Authority

UU - Urban Unit

WAPDA - Water and Power Development Authority


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EXECUTIVE SUMMARY

1. BACKGROUND OF THE STUDY

The Government of the Punjab intends to develop urban areas of the Province into

sustainable, livable and well managed engines of economic growth as envisaged

in the Vision 2020. Urban development and its management are critically linked

with sound, comprehensive and strategic metropolitan level of long term planning.

There is a range of structural and institutional impediments to urban development

and management in Punjab. To address these short comings and to enhance

economic growth, the Government of Punjab in collaboration with the World

Bank, has initiated an urban sector reform program in the five (5) large Cities of

the Punjab Province under large Cities Development Policy Loan (DPL).

In this context the Government of Punjab has emphasized on a need to improve

the transportation system in cities through policy and institutional reforms with

support of the World Bank. To carry out this task the Urban Unit of P&D

Department started to study on the policy, institutional and regulatory reforms

required for improving delivery of urban transport services in Lahore and other

cities of Punjab Province.

The Objectives of the study are;

(i) To identify major problems faced by the Province and its five large cities in

the provision of cost-efficient and equitable urban transport services.

(ii) To recommend policy, institutional and regulatory reforms required for

improving delivery of urban transport services in cities of Punjab, especially

in above mentioned.


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2. SCOPE OF WORK

The scope of work, as per the TOR, covers the following issues:

(i) Urban Transport Policy/Planning Assessment.

(ii) Urban Transport Institutional Assessment.

(iii) Public Transport Regulatory Assessment.

(iv) Urban Transport Financing Assessment.

(v) Development of a Draft Punjab Urban Transport Policy (PUTP)

(vi) Development of an Institutional Realignment or Reform Plan (IRP).

(vii) Public Consultation.

3. OVER-VIEW OF THE TRANSPORT SECTOR IN PAKISTAN

3-1 General

Pakistan is strategically located in the north-western part of South Asia and

is bordered by Afghanistan and Iran in the west, India in the east and China

in the far north-east.

In 2007 an estimated population of Pakistan was over 169 million

inhabitants. Pakistanis make up 2.5 percent of the world’s population, which

makes it the sixth most populous country and its population growth rate is

still among the highest in the region.

Over half of Pakistan’s Population is in Punjab, whereas Sindh and NWFP

have 23% and 15% inhabitants respectively and Balochistan around 5%.

Over the last few years, Pakistan has recorded a sturdy GDP growth of over

5%, reaching 7.0 percent in 2006-07.


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3-2 Transport Sector in Pakistan

The transport and communication sector in Pakistan accounts for about 11

percent of the GDP, 16 percent of fixed investment, 6 percent of

employment and about 15 percent of the Public Sector Development

Programme (PSDP).

Road transport is the backbone of Pakistan’s transport system; accounting

for about 90 percent of the national passenger traffic and 96 percent of

freight movement.

Pakistan has a road network covering about 258,340 kilometres, including

165,762 km high type roads and 92,578 km low type roads.

Over half of the national highways network is in poor condition, and the

road safety record is poor. The country’s truck fleet is mostly made up of

obsolete, underpowered, and polluting vehicles. Also trucks are often

grossly overloaded.

The total number of motor vehicles on roads in Pakistan is over 6.8 million

units; where as the registered motor vehicles on roads are around 5 million.

4. OVER-VIEW OF PUNJAB

4-1 General

In terms of area, Punjab is Pakistan's second largest province at 205,344

km² (79,284 square miles) after Baluchistan and is located at the north-

western edge of South Asia. The population of the province in 2007 was

estimated to be 89 Million.


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Punjab is the most industrialized province of Pakistan. The province also

has a major role in an agricultural production. It contributes about to

68% of annual food grain production in the country.

4-2 Motorization

The Punjab government figures state the number of registered vehicles in

2006 were 4.5 million with a growth rate of more than 10 percent a year.

Out of the aforementioned total, the total number of registered vehicles

in five major cities of Punjab was about 2.8 million in 2006, with an

increase of more than 13 percent a year.

The number of non-motorised vehicles/Transportation (NMT) in Punjab

in 2006 was more than 5,839,803. This includes 228,873 registered and

5, 610,930 unregistered NMT.

4-3 The Current General Situation in the Five Big Cities of Punjab

More than one third of Punjab’s population presently lives in urban areas

and rapid growth of cities and the resulting urbanization are creating

economic and social stresses. The city of Lahore is home to about 8

million people and the other four other cities namely Faisalabad,

Rawalpindi, Multan and Gujranwala, each have populations in excess of

one million.

Around 47% of the urban population of Punjab lives in the 5 large cities as

mentioned above. These cities, suburbs and the economic regions

surrounding them produce an estimated 80% of the industrial production of

Punjab, and 33 % of the country’s GDP.


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5. TYPICAL ISSUES RELATED TO TRANSPORTATION

Typical issues identified through the overview are summarized as follows;

(i) Rapid urbanization and the associated pressure on urban transport

(ii) Low levels of urban service delivery

(iii) Inadequate levels of public transport.

(iv) Congestion in urban areas.

(v) Premature roads failure.

(vi) Lack of drainage along transportation corridors.

(vii) Over-loading.

(viii) Insufficient budget.

(ix) Parking issues.

(x) Inadequate relationship between land-use and transportation.

(xi) Mix of traffic.

(xii) Encroachments.

(xiii) Road safety issues.

(xiv) Ineffective and obsolete traffic laws.

(xv) High rates of pollution.

6. Urban Transport Policy/Planning Assessment

The following institutions in the Punjab Province were examined:

(i) Existing Situation Regarding Functioning of the Transportation Sector

Related Institutions

(ii) Policy Making Institutions(Provincial & Federal)


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Afterwards, Recommendations for the Strategic Policy Directions were made.

7. Urban Transport Institutional Assessment

The following institutions in the Punjab Province were examined.

(i) The Existing Framework for the Urban Transport Planning and

Management

(ii) Punjab Local Government Ordinance 2001 for the City Governments

(iii) The Punjab Government: Rules of Business for the Various Relevant

Departments

Comparable International Experiences are also introduced and finally The

Recommendations for the Directions and Processes for the Institutional Reforms

in the Transport Sector was made.

8. Development of an Institutional Realignment or Reform Plan

The transport sector at macro level is currently managed by four federal

ministries, four provincial governments and six autonomous authorities. The

absence of a single ministry, "Ministry of Transportation" that encompasses all

sub-sectors has created negative effects on the improvement and modernization of

the key transport Systems in Pakistan.

The fully functional and autonomous Metropolitan Transport Authorities (MTAs)

under the respective City District Governments (CDGs) shall be created in all the

five big cities of Punjab province with all consolidated functions of the transport

sub-sectors under their umbrella, such as roads, rail, mass-transit, public transport,

air and water.

The MTAs in each of the five big cities shall be overseen by their respective

Boards with an appropriate representation of the provincial government through

the Departments, such as P&D, Transport, Traffic Police, LG&RD, HUD & PIlE,


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Environmental Protection and Excise and Taxation. Also in the respective MTAs

Boards, there will be an appropriate representation of the relevant Cantonment

Boards and the DHAs, where applicable.

For a tentative organizational set up, see Figure 7.2.

9. Public Transport Regulatory Assessment

The following registration in the Punjab Province were examined.

(i) Punjab Motor Vehicle Act, 1965

(ii) Comments on Amendment 45a In Punjab Motor Vehicle Act, 1965

(iii) Motor Vehicles Rules 1969

(iv) Environment and Air Quality Standards

Then Recommendations for Strategic Policy Directions were made.

10. Urban Transport Financing Assessment

Existing Financing Mechanism are assessed as follows:

(i) Transport Infrastructure and Services

(ii) Transport Fleet and Related Facilities

(iii) Federal Divisible Pool Taxes

(iv) Straight Transfers to Province

(v) Federal Grants

(vi) Provincial Own Receipts

(vii) Local Government Finance

(viii) Vertical Distribution of Resources

(ix) Spending on Construction and Maintenance of Roads

(x) Urban Transport Financing for Five Cities

(xi) City Government Budget for Lahore


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(xii) City Government Budget for Faisalabad

(xiii) City Government Budget for Gujranwala

(xiv) City Government Budget for Multan

(xv) City Government Budget for Rawalpindi

Gaps and Constraints and Potential Options and Sources of Funding (Public Private

Partnership) are discussed and finally Sustainable Financing methods/plans are

Recommended

Mechanisms as follows are proposed

(i) Dedicated Fund

(ii) Endowment Fund(s)

(iii) New Taxes

11. PUBLIC CONSULTATION

In order to make a pragmatic transport policy, the Consultants have developed

the following Inter-Stakeholder Consultation strategy:

(i) Developed Stake-holders’ Consultation Plan

Detailed interactive meetings with the Stakeholders’ were held in all five

big cities.

(ii) Prepared Questionnaire

A detailed questionnaire was prepared and distributed amongst the

stakeholders.

(iii) Feedback and an Analysis from the Stakeholders

The feedback and an analysis from the stake-holders consultation and the

questionnaire response has provided a basis for a pragmatic and a realistic

analysis for the Transport Policy.


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(iv) Held Inter-Stakeholder Workshop

The Stakeholders from Lahore, Faisalabad, Gujranwala, Rawalpindi and

Multan from a varied background gathered in Lahore for an interactive

session which was held for full day.

12. Draft Punjab Urban Transport Policy

Based on the entire exercise during the course of the study of consultative procedure

and meetings, Stake-holders Workshop and varied data collection and analysis, the

consultants have prepared a draft Punjab Urban Transport Policy.

Broad Parameters of a Transport Policy are;

(i) There is a Requirement for the Institutional Development and Strengthening

(ii) Develop Practical Policies and adopt Proper Planning Measures

(iii) Improve Planning Rules and Regulations

(iv) Enhance Transportation Related Technical Capacity

(v) Develop Pragmatic Relationship between the Land-Use and Transportation

(vi) Standardization of Procedures

(vii) Pragmatic Steps are Needed to Ease Congestion

(viii) Immediate Measures are Required to Improve the Public Transport System

(ix) Motor Vehicle Act, 1965 Needs to be Updated

(x) Effectively Improve the Road Safety Procedures

(xi) There is a Demand to Greatly Enhance the Traffic Rules Enforcement

Capability

(xii) Improve the Transportation Related Financial Capabilities of the City

Government

(xiii) Introduce Environmental Friendly Transportation System

(xiv) Improve Logistics and Freight Movement Facilities

(xv) Axle Load Control

(xvi) Encourage Pragmatic and Planned Multi-Modal System for the Five Big

Cities

(xvii) Develop Regional Transport and Encourage Transit Trade


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1. INTRODUCTION 1.1 Objectives of the Study

(i) Identifying major problems faced by the Province and its five large cities; Lahore, Faisalabad, Gujranwala, Multan and Rawalpindi in the provision of cost-efficient and equitable urban transport services.

(ii) Recommending policy, institutional and regulatory reforms required for

improving delivery of urban transport services in Punjab cities, especially in these five cities.

1.2 Scope of Work

Dainichi Consultant Inc. has the following scope of work as per the TOR: • Urban Transport Policy/Planning Assessment. • Urban Transport Institutional Assessment.

• Public Transport Regulatory Assessment.

• Urban Transport Financing Assessment.

• Development of a Draft Punjab Urban Transport Policy (PUTP)

• Development of an Institutional Realignment or Reform Plan (IRP).

• Public Consultation.

1.3 Methodology 1.3.1 Institution re-alignment plan and urban transport policy for Punjab can not be

formulated and assessed in isolation. Henceforth, a stakeholder consultation was devised as a vital part of the assignment for the successful implementation of consultancy findings.

1.4 Stakeholder Consultation 1.4.1 Consultation Program: The Stakeholders’ Consultation Program is the essential

element in the formulation of the Institutional Realignment Plan (IRP) and the


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Punjab Urban Transport Policy (PUTP). This process helps to analyze, design and foster information-gathering and sharing which finally leads to the assessment of a particular Stakeholder’s role and identify gaps and constraints in the urban transport delivery.

1.4.2 Identified Stakeholders: For this purpose Dainichi Consultant Inc. (DCI) has

formulated a Stakeholder Consultation Plan (SCP). As a first step, stakeholders related to this assignment were identified with due consultation of the Urban Unit (UU). The lists of the stakeholders consulted in this assignment are shown in Table 1.1.

Table 1.1 List of Stakeholders

1. Secretary, Local Government & Rural Development, GoPunjab

2. Secretary, Housing & Urban Development and Public Health Engineering Department, GoPunjab

3. Secretary, Communication & Works Department, GoPunjab

4. Secretary, Transport Department, GoPunjab

5. Secretary, Excise & Taxation Department 6. DIG, Traffic Police, Punjab7. Director General, Parks & Horticulture Authority, GoPunjab

8. Joint Secretary (Punjab); NGO - Road User Association-ARUP

9. Member Engineering, P&D Department, GoPunjab

10. Chief, Urban Development, P&D Department, GoPunjab

11. Chief, Roads & Bridges, P&D Department, GoPunjab

12. District Nazim, Lahore City District Government

13. District Nazim, Faisalabad City District Government

14. District Nazim, Gujranwala City District Government

15. District Nazim, Multan City District Government

16. District Nazim, Rawalpindi City District Government 17. Director General, Rawalpindi Development Authority 18. Chief Engineer, Traffic Engineering Planning Agency(TEPA), Lahore 19. Administrator, Defense Housing Authority, Lahore 20. Executive Officer, Cantonment Board 21. Public Transport Association


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1.4.3 Stakeholders Communication Committee: A Stakeholders Communication

Committee (SCC) was established to hold communication with the stakeholders. The SCC comprises of Dainichi as well as Urban Unit (UU) members. See Table 1.2 for the members of the SCC. For this purpose a Questionnaire has prepared, see Appendix I. Also a list of required data was prepared in order to undertake the Urban Transport Policy/Planning Assessment, Urban Transport Institutional Assessment, Public Transport Regulatory Assessment and Urban Transport Financing Assessment. These documents were communicated to the respective stakeholders prior to the respective visits so that they could prepare in advance. The Stakeholder Communication Committee visited respective stakeholders in Lahore, Faisalabad, Gujranwala, Rawalpindi and Multan. In these cities, detailed and structured meetings were held to have proactive and meaningful discussions and to come-up with suggestions and guidelines in transportation related sector. This process enabled to have interaction at grass root level and a direct contact with the individual stakeholders to make pragmatic analysis and formulate realistic transport sector policies.

Table 1.2 Communication Committee 1. Mr. Umar Farooq DCI

2. Dr. Farrukh Shaikh DCI

3. Dr. Shahid Nasir DCI

4. Mr. Sohail Afzal UU

5. Ms. Nusrat Fatima UU

1.4.4 Inter-Stakeholders Workshop (ISW) 1.4.4.1 After meetings with the stake-holders and an initial analysis, the Inter-Stakeholder

workshop was held as per schedule on July 9, 2007. The Stakeholders from Lahore, Faisalabad, Gujranwala, Rawalpindi and Multan gathered in Lahore for an interactive session; which was held for a full day. For the list of the participants of the ISW, see Appendix II.

1.4.4.2 The Inter-Stakeholders Communication Committee (ISCC) had provided a forum

to stakeholders to discuss their concerns with other stakeholders of the project. It had addressed both procedural and substantive issues, including but not limited to alternatives, analysis of the current situation, the review and preparation of assessment reports and discussion of the potential mitigation measures. This committee comprised of one representative from each stakeholder, the Urban Unit team and the Consultants team. This forum had given an open opportunity to discuss views and suggestion and highlight key issues among the stakeholders. This workshop helped the team to discuss the assessment of the current situation and their proposed direction for the Transport Policy and the Institution


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Realignment with all stakeholders collectively. This interactive session helped us in the finalization of our findings.

1.4.5 Public Consultation 1.4.5.1 A final public consultation will be held in due course. This will be an open

seminar where the Draft Urban Transport Policy, Institution Realignment Plan, and comments on the relevant part of the urban transport regulation will be finally presented.

1.5 Report Composition 1.5.1 Chapter 2 deals with the geography, demography, socio-economic indicators and

the current situation and issues of the transport sector of Pakistan in general and specifically of Punjab and its five big cities.

1.5.2 Chapter 3 gives the transport sector overview in Pakistan, Punjab and its five big cities, including; such as the road classification, density and motorization in Pakistan in general and specifically of Punjab and its five big cities.

1.5.3 Chapter 4 encompasses the typical transportation related issues in Punjab and its five big cities.

1.5.4 Chapter 5 covers an in-depth urban transport policy/planning assessment, specially the existing situation regarding the transportation sector related institutions in the Punjab Province. Also gave recommendations for the strategic policy directions.

1.5.5 Chapter 6 deals in detail with the urban transport institutional assessment, highlighting the relevant portions of the Punjab Local Government Ordinance 2001 and the Punjab Government Rules of Business. This section also highlights comparable international experiences. Also the recommendations were given for the directions and processes for the institutional reforms in the transport sector.

1.5.6 Chapter 7 makes an in-depth analysis and provides a comprehensive institutional

realignment or the reform plan for the transport sector, including the creation of the Metropolitan Transport Authorities (MTAs) for the five big cities of the Punjab Province.

1.5.7 Chapter 8 highlights and analyses the public transport regulatory assessment,

inclusive of the Punjab Motor Vehicle Act, 1965.

1.5.8 Chapter 9 covers in detail, the urban transport financing assessment, including the federal, provincial and the five big cities budgetary allocations, revenues and


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receipts in this context. Also new innovative financial mechanisms for the transport sector have also been highlighted.

1.5.9 Chapter 10 comprehensively constitutes the Draft Punjab Urban Transport Policy

formulated by the Consultants in light of overall analysis of the wide-range data and the feed back from the vast array of interactive meetings and discussions with stakeholders.

Urban Transport Policy Study for Five Cities of Urban Transport Policy Study for Five Cities of Punjab Province Final Report

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2. Background of the Study 2.1 GEOGRAPHY OF PAKISTAN 2.1.1 Pakistan is strategically located in the north-western part of the South Asia

and is bordered by Afghanistan and Iran in the west, India in the east and China in the far north-east.

2.1.2 Pakistan covers an area of about 796,095 square kilometers and has a 1,046

kilometer Arabian Sea coastline.

2.1.3 The land borders of Pakistan constitute around 6,774 kilometers. The length of the border along Afghanistan to the north-west is 2,430 kilometers, with Iran in the west is 909 kilometers, with China to the north-east is 523 kilometers and with India to the east is 2,912 kilometers. So Pakistan is bordering one of the two fastest growing economies of the world; India and China, with a vast potential of the transit trade. Also, through Afghanistan and China, Pakistan has access to the land locked Central Asian countries.

2.1.4 The country has four provinces, Punjab, Sindh, Balochistan, and the North-

West Frontier Province and two territories, Islamabad Capital Territory (ICT) and the Federally Administered Tribal Areas (FATA).

2.1.5 Pakistan has three huge mountain ranges in the north: the Karakorums, the

Himalayas and the Hindu Kush and the second highest peak in the world (K-2 or Mt. Godwin Austin). In fact, Pakistan has seven of the sixteen tallest peaks in Asia and the largest concentration of glaciers after the North and the South Poles.

2.1.6 It is home to some of the highest and most dangerous mountain passes in the

world; the Khyber, the Khojak, and the Baroghil and the site of the world’s highest international highway, the Karakoram Highway which leads from Pakistan to China.

2.1.7 Pakistan is divided into three major geographic areas: the northern

mountains, the Indus River plain and the Balochistan Plateau in the south.

2.1.8 The Indus, Jhelum and Chenab are the major rivers of Pakistan and the country has one of the largest canal irrigated systems in the world.

2.1.9 For general overview, see attached Map 2.1.


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Map 2.1 Map of Pakistan, Highlighting the Land Routes

2.2 DEMOGRAPHY 2.2.1 National 2.2.1.1 In 2007 an estimated population of Pakistan was over 169 million

inhabitants. The population by the next decade is expected to exceed 176 million.


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2.2.1.2 Population of Pakistan has increased by over five fold, from around 30 million to 155 million since independence. The urban population of Pakistan during 1951-98, expanded to around seven-fold.

2.2.1.3 The high growth rate of population of 1960s to 1980s slowed down in the

early 1990s. Data from the last quarter century indicates that the overall population growth rate of over 3% per annum (during 1980s) has now declined to below 2% by 2005.

2.2.1.4 Pakistan still has a relatively high population growth rate of 1.9 percent per

annum, in accordance with the Annual Report 2003-2004 of the State Bank of Pakistan.

2.2.1.5 The total fertility rate in Pakistan has declined from 4.8 children per woman

in fiscal year 2000 to 4.1 children per woman in 2003-2004.

2.2.1.6 Pakistanis make up 2.5 percent of the world’s population, which makes it the sixth most populous country and its population growth rate is still among the highest in the region.

2.2.1.7 Also Pakistan has 100 million people below the age of 25; this demographic

dividend can both be an opportunity and a challenge.

2.2.1.8 For the general over-view of the vital statistics of Pakistan, see Table 2.1.

Table 2.1 Demographic Indicators - 1998 Census Area (Sq. Kms.) 796,096 Population (000) 132,352 Male 68,874 Female 63,478 Sex Ratio (Males per 100 Females) 108.5

Population Density (Persons per Sq. Km) 166.3

Urban Proportion 32.50 Average Annual Growth Rate (1981-1998) 2.69 Literacy Ratio (10+) 43.92 Male 54.81 Female 32.02 Labour Force Participation Rate (10+) 31.98

Average Household Size 6.8 Source: Population Census Organization, Ministry of Economic Affairs & Statistics, GoPakistan


2-4

2.2.2 Provincial 2.2.2.1 Over half of population of Pakistan is in Punjab, whereas Sindh and the

NWFP have 23% and 15% inhabitants respectively and Balochistan around 5%.

2.2.2.2 Since independence, this geographic distribution of population between

provinces has remained almost stable, indicating little or no regional migration. However, the level of urbanization has been on the rise and the share of the urban population has increased from being less than one-quarter of the total population in 1970s to over 35% of the total population in 2005.

2.2.2.3 See Figure 2.1 and Table 2.2 for the population of Punjab, its growth rate

and the distribution by province.

Figure 2.1 Population and Growth Rate of Punjab Source: Pakistan Transport Plan Study – 2006, JICA, and Others

Table 2.2 Population by Province Year Punjab Sindh NWFP Balochistan Total Growth Rate 1972 37846 14156 10880 2428 65310 3.60 1981 47633 19029 13260 4332 85254 3.10 1998 74426 30440 20920 6566 132352 2.60 2005 87229 36005 246114 7596 155444 1.87

Source: Pakistan Transport Plan Study – 2006, JICA 2.2.2.4 The urbanization has remained concentrated in less than a dozen historic

urban centres, and except for Islamabad no new towns have emerged. This increase in the population, density and strong urbanization and diversification in land-use have resulted in an increased demand for mobility, in other words an efficient transport system is also necessary for the economic prosperity and social integration.


2-5

2.2.2.5 For the distribution of the urban population by province in Pakistan, see, attached Table 2.3 and Figure 2.2.

Table 2.3 Urban Population Distribution by Province

Year Punjab Sindh NWFP Balochistan Pakistan 1972 9,260 5,726 1,209 399 16,594 1981 13,256 8,243 1,665 677 23,841 1998 23,548 14,840 3,079 1,569 43,036

Urban Population

(,000) 2005 29,834 18,905 3,966 2,218 54,923 1972 24% 40% 11% 16% 25% 1981 28% 43% 13% 16% 28% 1998 32% 49% 15% 24% 33%

% Population in Urban Areas

2005 34% 53% 16% 29% 35% Source: Pakistan Transport Plan Study – 2006, JICA

Urban Population

-

10

20

30

40

50

60

1972 1981 1998 2005/2006

popu

latio

n (M

illio

ns)

PakistanPunjabSindhNWFPBalochistan

Figure 2.2 Urban Population by Province Source: Pakistan Transport Plan Study – 2006, JICA

2.3 ECONOMY 2.3.1 Over the last few years, Pakistan has recorded a sturdy GDP growth of over

5%, reaching 7.0 percent in 2006-07. 2.3.2 Pakistan’s economy continues to gain traction as it experiences the longest

spell of its strongest growth in years. 2.3.3 The outcomes of the outgoing fiscal year indicate that Pakistan’s upbeat

economic momentum remains on track. Compared with other emerging economies in Asia, this places Pakistan as one of the fastest growing economies in the region along with China, India, and Vietnam. The good performance has resulted from a combination of generally sound economic


2-6

policies, on-going structural reforms and a benign international economic environment.

2.3.4 The growth in the GDP per Capita has been slow due to high growth in

population. However, the decline in the population growth rate and the high economic growth rate in the recent years has helped per capita GDP grow by 4.7% and per capita income in current dollar terms was up by 14.2%, reaching $847 per annum by 2005-06.

2.3.5 For the real GDP Growth, see Figure 2.3.

Figure 2.3 Real GDP Growth Source: Economic Survey, 1985/6-2005/6

2.3.6 The sector-wise analysis shows that the primary and the secondary sectors

contributed about quarter of the GDP and the remaining half was generated by the tertiary sector during 1980s.

2.3.7 The recent years GDP growth has been somewhat higher in the secondary

sector due to an increased industrialization. This has helped to increase the share of the tertiary sector to about 53%.

2.3.8 For the comparative performance in terms of the GDP in the region, see

Table 2.4.

7.5

8.6

6.6

1.8

4.0

4.9

6.1

3.1

4.70123456789

10

1980's 1990-II 2001-02 2003-04 2005-06


2-7

Table 2.4 Regional Growth Performance Real GDP

Region/Country 2003-04 2004-05 2005-06

World GDP 4.1 5.3 4.8 Euro Area 0.7 2.1 1.3

United States 2.7 4.2 3.5

Japan 1.8 2.3 2.7

Germany -0.2 1.6 0.9

Canada 2.0 2.9 2.9

Developing Countries 8.4 8.8 8.6

China 10.0 10.1 9.9

Hong Kong SAR 3.2 8.6 7.3

Korea 3.1 4.6 4.0

Singapore 2.9 8.7 6.4

Vietnam 7.3 7.7 7.5

ASEAN

Indonesia 4.7 5.1 5.6

Malaysia 5.4 7.1 5.3

Thailand 7.0 6.2 4.4

Philippines 4.5 6.0 5.1

South Asia

India 7.2 8.1 8.0

Bangladesh 5.8 5.9 5.8

Sri Lanka 6.0 5.4 5.9

Pakistan 7.5 8.6 6.6

Middle East

Saudi Arabia 7.7 5.2 6.5

Kuwait 13.4 6.2 8.5

Iran 6.7 5.6 5.9

Egypt 3.1 4.1 5.0 Source: World Economic Outlook (IMF), April 2006


2-8

2.4 OVERVIEW OF THE PUNJAB PROVINCE 2.4.1 Geography

2.4.1 In terms of area, Punjab is Pakistan's second largest province at 205,344 km²

(79,284 square miles) after Balochistan and is located at the north-western edge of the geologic Indian plate in the South Asia.

2.4.2 The historical city of Lahore is the provincial capital of the Punjab province.

The other important cities include Multan, Faisalabad, Gujranwala, and Rawalpindi.

2.4.3 For the geographical details of Punjab and the five big cities, see Map 2.2.

Map 2.2 Map of Punjab, Highlighting Five Big Cities

FAISALABAD LAHORE

GUJRANWALA

RAWALPINDI

MULTAN


2-9

2.4.2 Demography 2.4.2.1 The Punjab Province as discussed

in the preceding sections is the most populous province of Pakistan.

2.4.2.2 The population of the province is

estimated to be 89 Million in 2007 and is home to over half the population of Pakistan.

2.4.2.3 The population of Punjab province has multiplied four times during the last

fifty years rising from 20 million in 1951 to almost 89 million today. The dynamics have changed so fast that the districts of Lahore and Gujranwala have a much higher population today than that of the whole of Punjab in 1951.

2.4.2.4 For details, see Figures 2.4 & 2.5.

0

50

100

150

200

250

1998 2005 2010 2015 2020

pop

in m

illio

n's

Pakistan Punjab

Figure 2.4 Population Projections Source: Pakistan Transport Plan Study – 2006, JICA

Rural

Urban

-102030405060708090

100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Figure 2.5 Population of Punjab Source: Punjab Development Statistics – 2006


2-10

2.4.3 Economy 2.4.3.1 The Punjab Province, despite lack of a coastline is the most industrialized

province of Pakistan. The manufacturing industries of the Province of Punjab produce textiles, sports goods, machinery, electrical appliances, surgical instruments, metals, bicycles and rickshaws, floor coverings and processed foods.

2.4.3.2 In 2003, the province manufactured 90% of the paper and paper boards, 71%

of fertilizers, 65% of sugar and 40% of the cement of Pakistan. 2.4.3.3 The Punjab Province has also more than 48 thousand industrial units. The

small and cottage industries are in abundance. There are 39,033 small and cottage industrial units. The number of textile units is 11,820. The ginning industries are 6,778. There are 6,355 units for processing agricultural raw materials including food and feed industries.

2.4.3.4 The Lahore and the Gujranwala Districts have the largest concentration of

small light engineering units. The district of Sialkot excels in sports goods, surgical instruments and cutlery goods.

2.4.3.5 The extensive irrigation system, despite its dry climate; makes it a rich

agricultural region. Its canal-irrigation system established by the British is the largest in the world.

2.4.3.6 The wheat and cotton are the largest crops. Other crops include rice,

sugarcane, millet, corn, oilseeds, pulses, fruits, and vegetables. The livestock and poultry production are also important.

2.4.3.7 Cotton and rice are important crops. They are the cash crops which

contribute substantially to the national exchequer. Attaining self-sufficiency in agriculture has shifted the focus of the strategies towards small and medium farming, stress on barani areas, farms-to-market roads, electrification for tube-wells and control of water logging and salinity.

2.4.3.8 The province is playing a leading role in the agricultural production. It

contributes about 68% to the annual food grain production in the country. The 51 million acres (210,000 km²) is cultivated and another 9.05 million acres (36,600 km²) are lying as cultivable waste in different parts of the province.

2.4.3.9 Punjab is also a mineral rich province with extensive mineral deposits of

coal, rock salt, dolomite, gypsum, and silica-sand.

2.5 CURRENT GENERAL SITUATION IN THE FIVE BIG CITIES OF PUNJAB

2.5.1 More than one third of Punjab’s population lives in the urban areas at

present. Consequently rapid growth of cities and urbanization are creating economic and social stresses.


2-11

2.5.2 This clearly implies that the institutions, procedures, systems and skills

which were quite appropriate until about 10-15 years ago, now have to be readjusted, re-tuned and recalibrated to address new and emerging challenges.

2.5.3 The inability to adapt in accordance with changing requirements by the

concerned stakeholders and the institutions with the passage of time has created inertia in the service delivery mechanism.

2.5.4 The erosion of capacity of key institutions to deliver public services is

causing inequities and suffering to the common people. At the macro level this blunts the transmission mechanism of various policies and at the micro level this retards the implementation of the projects and makes development ineffective.

2.5.5 Lahore, the capital of Punjab Province, is one of the main cities of Pakistan.

It is considered to be an educational and historical treasure of the region. The other important cities include Multan, Faisalabad, Gujranwala, and Rawalpindi.

2.5.6 See Map 2.3, highlighting the administrative boundaries of the five big

cities of Punjab.

Map 2.3 District Boundaries of the Five Big Cities of Punjab


2-12

2.5.7 Demography 2.5.7.1 In case of Punjab Province, a major portion of population resides in five big

cities, namely Lahore, Faisalabad, Gujranwala, Multan and Rawalpindi.

2.5.7.2 The city of Lahore is home to about 8 million people and the other four cities such as, Faisalabad, Rawalpindi, Multan and Gujranwala each have populations in excess of one million.

2.5.7.3 For the population of five big cities, see Figure 2.6.

Figure 2.6 Population in Five Big Cities Source: Punjab Development statistics - 2006

2.5.7.4 In the proceeding sections, the Consultants have briefly discussed the five

big cities of Punjab province. 2.6 LAHORE 2.6.1 Lahore is the capital of the Province of

Punjab and is the second most densely populated city after Karachi in Pakistan. The city has an international airport, railway station and a dry-port.

2.6.2 The city has Ravi River on its west and

Wagah border with India on its east.

Population in five big cities

-1,000

2,0003,0004,000

5,0006,0007,000

8,0009,000

2007

Year

Thou

san

Per

sons Lahore

FaisalabadGujranwalaMultanRawalpindi


2-13

2.6.3 The city of Lahore has a rich history of the Mughal and the colonial architecture. The Mughal architecture, such as the Badshahi Mosque, Lahore Fort, Shalimar Gardens and the Mausoleums of Jehangir and Nur Jehan are very popular tourist spots in the city.

2.6.4 Also various colonial buildings originally built by the British Empire,

namely the Lahore High Court, General Post Office (GPO) and many of the older educational institutions still retain their Mughal-Gothic style.

2.6.5 Demographics 2.6.5.1 According to the 1998 census, the population of Lahore was nearly 6.8

million. The mid 2006 government estimates now put the population at somewhere around 8 to 9 million, which makes it the second largest city in Pakistan, after Karachi. It is considered to be one of the thirty largest cities of the world. For details, see Figure 2.7.

FFigure 2.7 Lahore Population Source: Punjab Development Statistics - 2006

2.6.6 Transportation

2.6.6.1 The city of Lahore has a major national access through the historic Grand

Trunk Road (G.T. Road) or N-5 and the Lahore - Islamabad Motorway (M-2).

2.6.6.2 In Lahore, due to ever increasing traffic problems; the government

constructed numerous underpasses to ease congestion and prevent the traffic jams.

2.6.6.3 The city of Lahore has a high level of air pollution and smog, mostly due to

the industry growth at an ever-increasing rate. 2.6.6.4 The air pollution levels are so high that they reach record peaks and smog is

so thick that on some days it is only possible to see a few meters ahead.

Lahore Population

Rural

Urban

-1,0002,0003,0004,0005,0006,0007,0008,0009,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Thou

sand

Per

sons

UrbanRural


2-14

2.6.6.5 The high economic growth has significantly increased the income level of the middle class. This has also resulted in an increased numbers of vehicles. The total numbers of the registered motor vehicles in Lahore in 2005 were 1.2 million as compared to 0.5 million in 1998. The number has doubled in a period of nine to ten years. For details, see Figure 2.8.

Figure 2.8 Number of Veh

Figure 2.8 Modal Growth Rate Source: Punjab Development Statistics – 2005 （Others include special vehicles like tractors ）

2.6.6.6 Increase in number of vehicles along-with increased number of traffic problems has made traveling in the city risky, as indicated by a total of 802 accidents in 2004.

2.6.6.7 The city has an international airport, railway station and a dry-port. 2.7 FAISALABAD: 2.7.1 The city of Faisalabad was

established as a mandi (Market) Town during 1885 – 1905. The city was planned as a grid iron pattern and was formerly known as Lyallpur.

2.7.2 The city-district of Faisalabad is

bound on the north by the districts of Gujranwala and Sheikhupura; on the east by Sahiwal district, on the south by Toba Tek Singh district and on the west by Jhang district.

0%2%4%6%8%

10%12%14%16%18%

Motorcars, jeeps& stationwagons

Motorcycles/scooter

Trucks Deliveryvans

Buses Taxies Rickshaws Others

Type of Traffic

Grow

th R

ate


2-15

2.7.3 Faisalabad has a strong industrial base; including textiles, jewelry, home

furniture, and pharmaceuticals. Demographics

2.7.4 Faisalabad is the third largest district in Pakistan with an estimated

population of 6.5 million in year 2006. It is an important industrial centre located in the Punjab province, west of Lahore.

2.7.5 For details, see Figure 2.9.

Figure 2.9 Faisalabad Population Source: Punjab Development Statistics - 2005

2.7.6 Transportation 2.7.6.1 The city of Faisalabad is assisted by the expanding transport network; which

includes Pindi Bhattia – Faisalabad Motorway; connecting the Lahore – Islamabad Motorway (M-2).

2.7.6.2 The city has an international airport, railway station and a dry-port.

2.7.6.3 The high rate of population growth has resulted in overcrowded, deteriorated

environment with poor level of service provided by various modes of transportation, including the mechanical and the animal driven vehicles.

2.7.6.4 The present data shows that there were 307,471 motor vehicles in 2005 as

compared to 141,634 vehicles in 1998. The vehicles have increased significantly. There are 50,823 motor cars, jeeps and wagons, 212,707 motor-cycles/ scooter, 3,796 trucks, 5,176 buses and 9,526 rickshaws with an overall vehicle growth rate of 10%.

Rural

Urban

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Thou

sand

Per

sons


2-16

2.7.6.5 For details, see Figure 2.10.

Figure 2.10Modal Growth Rate Source: Punjab Development Statistics - 2005

2.7.6.6 The existing road network and other available transportation facilities are

unable to accommodate such a diversified and huge volume of traffic on road. Also due to the traffic pressure, the road safety problems have increased. In Faisalabad, in 2005 there were around total of 279 accidents out of which 207 were fatal.

2.7.6.7 In Faisalabad, various other common issues are encroachments, mixed traffic, damaged road surfaces, poorly designed intersections, wrong positions of utility services along roads, haphazard commercialization and an unplanned location of the transport related infrastructure; such as bus stands, truck stands, fruit and the vegetable markets. In Faisalabad, parking is also a serious problem causing inconvenience in central commercial zones.

2.8 MULTAN 2.8.1 The city of Multan is located in

the southern part of the province. It is built just east of the Chenab River, more or less in the geographic center of the country.

2.8.2 Multan is a commercial and an

industrial center and is connected with the rest of the country for example Lahore, Karachi, Quetta and Faisalabad.

0% 2% 4% 6% 8%

10% 12% 14% 16%

Motor cars, jeeps & station wagons

Motor cycles/ scooter

Trucks Deliveryvans

Buses Rickshaws Others

Type of Traffic

Growth Rate


2-17

2.8.3 The industries in Multan include fertilizer, cosmetics, glass manufacturing, cotton production and processing, large textile units, flour mills, sugar and oil mills and large-scale power generation projects. It is famous for its handicrafts, such as carpets, ceramics and cottage industries.

2.8.4 Demographics 2.8.4.1 It has a population of over 3.8 million according to 1998 census, making it

the sixth largest city of Pakistan. 2.8.4.2 For details, see Figure 2.11.

Rural

Urban

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Thou

sand

Per

son'

s

Figure 2.11Multan Population

Source: Punjab Development Statistics - 2006


2.8.5.1 The existing road network and the other available transportation facilities are unable to accommodate such a diversified and huge volume of traffic on road though the present government has attempted to resolve some urban issues. Also due to the traffic pressure, the road safety problems have increased.

2.8.5.2 The common disabilities of the present transport facilities include inability

to accommodate diversified and huge volume of traffic, encroachments, mixed traffic, damaged road surfaces, poorly designed intersections, wrong positions of utility services along roads, haphazard commercialization and an unplanned location of the transport related infrastructure; such as bus stands, truck stands, fruit and the vegetable markets.

2.8.5.3 The total number of vehicles in Multan stood at 320,519 in 2005. Motor

cycles / scooters constituted 68% of the total numbers. The second highest


2-18

share is that of motor cars, jeeps and station wagons at around 14%. Growth rate for others has been recorded at 12% per annum.

2.8.5.4 The growth of registered vehicles over the past 25 years has been recorded at around 13% per annum. The growth of others and the delivery vans was recorded at almost 24% and 17% respectively. The motor cycles / scooters, and motor cars, jeeps and station wagons share 13.5% and 12% respectively. For details, see Figure 2.12

05

1015202530

Motor cars,jeeps &stationwagons

Motorcycles/scooter

Trucks Deliveryvans

Buses Rickshaws Others

Type of Traffic

% G

row

th R

ate

Figure 2.12Modal Growth Rate Source: Punjab Development Statistics - 2006

2.8.5.5 The city has an international airport, railway station and a dry-port. 2.9 GUJRANWALA 2.9.1 Gujranwala borders with Ghakhar

Mandi and some small towns and villages. The city of Gujranwala is a major agricultural and an industrial city of the Punjab Province. The city is served by a railway station.

2.9.2 The rural areas around Gujranwala

produce a large variety of agricultural goods, mainly wheat, potatoes, barley and pearl millet.

2.9.3 The industrial areas of Gujranwala have numerous textile mills, cutlery

industry and large agricultural processing plants. The major exports include textiles, carpets, glass goods, medical equipment, leather products, metal utensils, agricultural equipment and the automotive/industrial machinery parts.


2-19

2.9.4 Demographics

2.9.4.1 Gujranwala District has population of about 4 million. The city in terms of population is the fifth largest city in Pakistan. For details, see Figure 2.13.

Rural

Urban

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Thou

san

Pers

on's

Figure 2.13 Gujranwala Population Source: Punjab Development Statistics - 2006


2.9.5.1 The existing road network and the other available transportation facilities are

unable to accommodate the huge volume of traffic on the roads. However, the present government has attempted to resolve some urban issues. Also due to traffic pressure, road safety problems have increased.

2.9.5.2 The various common issues are encroachments, mixed traffic, damaged road

surfaces, poorly designed intersections, wrong positions of utility services along roads, haphazard commercialization and an unplanned location of the transport related infrastructure; such as bus stands, truck stands, fruit and the vegetable markets. The city is served by a Railway Station.

2.9.5.3 The data regarding accidents and modal growth is presented in Figure 2.14.

0%

5%

10%

15%

20%

25%

30%

35%

M otorcars, jeeps& stationwagons

M otorcycles/scooter

Trucks Deliveryvans


Type of Traffic

Gro

wth

Rat

e

Figure 2.14 Modal Growth Rate Source: Punjab Development Statistics - 2006


2-20

2.10 RAWALPINDI 2.10.1 Rawalpindi is a city in the Potohar

Plateau near Pakistan's capital city of Islamabad in the province of Punjab.

2.10.2 Rawalpindi is located in the Punjab

province, 275 km (171 miles) to the north-west of Lahore. It is the administrative seat of the Rawalpindi District.

2.10.3 The city of Rawalpindi is the military

headquarters of the Pakistan Armed Forces and also served as the nation's capital, while Islamabad was being constructed in the 1960s.

2.10.4 The city is home to many industries and

factories. 2.10.5 Demographics

2.10.6 The population of Rawalpindi District is approximately 4 million. For details,

see Figure 2.15.

Figure 2.15 Rawalpindi Population Source: Punjab Development Statistics - 2006


2.10.7.1 Rawalpindi is located on the ancient Grand Trunk Road (N-5); which links

the city to nearly every major city in the northern and the southern parts of Pakistan, from Lahore in the Punjab to Peshawar in the NWFP.

Rural

Urban

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Thou

san

Pers

on's

UrbanRural


2-21

2.10.7.2 The city is also served by two Motorways, M2 (Lahore-Islamabad) and M1 (Islamabad-Peshawar).

2.10.7.3 Somewhat further away is the famous Karakoram Highway (KKH), the

world's highest international road, which connects Pakistan to China.

2.10.7.4 The public transport for travel within Rawalpindi is diverse, ranging from taxis, auto-rickshaws, mini-buses and even tongas (horse-drawn carriages). Due to lack of proper planning of roads, there is severe traffic congestion on almost all types of roads.

2.10.7.5 The city has an international airport, railway station and a dry-port.

2.10.7.6 For details, see Figure 2.16.

0%2%

4%6%8%

10%

12%14%

M otor cars,jeeps &stationwagons

M otorcycles/scooter

Trucks Deliveryvans


Type of Traffic

Gro

wth

Rat

e

Figure 2.16 Vehicle Growth Rate Source: Punjab Development Statistics - 2006


2-22

Appendix A: Showing Number of Vehicles in Lahore

Lahore Vehicle Data

-

200

400

600

800

1,000

1,200

1,400

1998 1999 2000 2001 2002 2003 2004 2005

No o

f veh

icle

s


B: Showing Lahore Accident Analysis

0

200

400

600

800

1,000

1,200

1980 1983 1986 1989 1992 1995 1998 2001 2004

Years

Nos

. Total

Fatal

Non-fatal



2-23

C: Showing Number of Vehicles in Faisalabad

No of Vehicles

Source: Punjab Development Statistics - 2005 D: Showing Faisalabad Accident Analysis

050

100150200

250300350400

1980 1983 1986 1989 1992 1995 1998 2001 2004

Years

Nos

.

Total

Fatal

Non-fatal

Road Accidents Faisalabad


-

50

100

150

200

250

300

350

1998 1999 2000 2001 2002 2003 2004 2005

No

(000

's)


2-24

E. Gujranwala Accident Analysis

050

100150200

250300350400450

1980 1983 1986 1989 1992 1995 1998 2001 2004

Years

Acc

iden

ts Total

Fatal

Non-Fatal

Road Accidents Gujranwala Source: Punjab Development Statistics - 2006

F. Rawalpindi Accident Analysis Road Accidents

0100200300400500600700800900

1980 1983 1986 1989 1992 1995 1998 2001 2004

Years

Nos

.

Fatal

Non-Fatal

Total

Road Accidents Rawalpindi



3-1


3. Over-View of the Transport Sector 3.1 GENERAL BACKGROUND 3.1.1 A strong, efficient and an affordable infrastructure is a critical element of good

investment climate and is a pre-condition to sustain the growth momentum. The transport and the communications are important elements of the infrastructure services and are essential in maintaining the economic growth and the competitiveness.

3.1.2 The transport and communication sector in Pakistan accounts for about 11 percent

of the GDP, 16 percent of the fixed investment, 6 percent of an employment and about 15 percent of the Public Sector Development Programme (PSDP).

3.1.3 The road transport is a backbone of the Pakistan’s transport system; accounting

for 90 percent of the national passenger traffic and 96 percent of the freight movement.

3.1.4 The transport system in Pakistan plays an important role in the unification of the

varied regions in terms of the social, economic and the political activities of Pakistan.

3.2 ROAD NETWORK

3.2.1 Pakistan has a road network, covering about 258,340 kilometres; including 165,762 km high type roads and 92,578 km low type roads. The total roads, which were 218,345 km in 1995-96, increased to 258,340 km in 2005-06.

3.2.2 During the out-going fiscal year, the length of the high typed road network increased by 1.8 percent but the length of the low type road network declined by 2.9 percent.

3.2.3 The length of high roads increased by 40 percent since 1995-96. This has been made possible by wide ranging programs and the development activities, specially through the district governments under the devolution program.

3.2.4 The annual growth of roads in Pakistan between 1995-96 and 2005-06 is given in Table-3.1 & Figure 3.1.


3-2


Table 3.1 Length of Roads in Pakistan High Type* Low Type* Total

Fiscal Year Length %Change Length %Change Length % Change

1995-96 118,428 6.4 99,917 3.7 218,345 5.2

1996-97 126,117 6.5 103,478 3.6 229,595 5.2

1997-98 133,462 5.8 107,423 3.8 240,885 4.9

1998-99 137,352 2.9 110,132 2.5 247,484 2.7

1999-2000 138,200 0.6 110,140 0 248,340 0.3

2000-01 144,652 4.7 105,320 -4.4 249,972 0.7

2001-02 148,877 2.9 102,784 -2.4 251,661 0.7

2002-03 153,225 2.9 98,943 -3.7 252,168 0.2

2003-04* 158,543 3.5 97,527 -1.1 256,070 1.5

2004-05* 162,841 2.7 95,373 -2.2 258,214 0.8

2005-06* 165,762 1.8 92,578 -2.9 258,340 0.1

*Estimated Source: Ministry of Communications, GoPakistan; 2006

Figure 3.1 Road lengths in Pakistan Source: Punjab Development Statistics – 2006

Note: High Type means the improved roads. Low Type means unfinished or low quality roads.

Road Lengths in Pakistan

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

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1997-98 1999-2000 2001-02 2003-04* 2005-06*

Km High Type

Low Type


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3.3 ROAD DENSITY

3.3.1 The road density is considered the index of prosperity and development. Pakistan, with an estimated population of around 169 million has a reasonably developed transport system.

3.3.2 The road density of Pakistan is 0.31 km/sq. km and intends to double it to 0.64 km/sq. km gradually over the next 10 years.

3.3.3 The road density of Pakistan is low, while in comparison with other developed and developing countries. For details, see Figure 3.2.

Figure 3.2 Road Density Comparison Source: Pakistan Transport Plan Study – 2006, JICA

3.4 ADMINISTRATIVE ROAD CLASSIFICATION 3.4.1 In Pakistan, the roads are broadly classified into four categories, such as;

motorways, national highways, strategic routes, provincial and the district roads. The motorways and the national highways form the backbone of the highway system, providing inter-provincial linkages along the major corridors and the provincial roads act as feeder roads to the national routes.

3.4.2 The strategic routes are neither of the above but serve the areas of the strategic importance to the nation. The motorways and the national highways are managed by the National Highway Authority (NHA), whereas provincial roads are managed by the respective provinces through their own systems.

Road Density Comparison

0

0 .5

1

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2

2 .5

3

3 .5

Japan

France

Hungary

UK Italy

India

USA

Spain

Malaysia

Pakistan

Brazil

Indonesia

China

Argentina

Countries

Roa

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ngth

/ Sq

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3.4.3 The district roads connect small conurbations and provide access to the villages

and the remote areas. The local authorities and the municipalities control the intra-urban roads of the cities and the towns for the local travel.

3.4.4 For the administrative road classification, see Table 3.2.

Table 3.2 Administrative Road Classification Administration Road Category Extension (km)

NHA/MOC National Highway/ Motorway/ Strategic Road 9,000

C&WD/WSD/FHA Provincial Road 101,000

District Government District Road 94,000

Municipality/ Cantonment Municipal and Army Road 54,000

Source: Pakistan Transport Plan Study – 2006, JICA 3.5 PASSENGER TRIP ON ROAD

3.5.1 The road passenger trips during the

1990s grew at 5% per annum in terms of the passenger-km, in accordance to the Economic Survey of Pakistan for 2005/06.

3.5.2 The growth rate is larger than that of the vehicle increase and almost equal to the economic growth rate during this period. Currently, passengers by road account for around 89% of the total domestic passengers.

3.5.3 See Figure 3.3 for the Passenger Trip on the Road. 3.6 LOW QUALITY OF ROAD TRANSPORT SERVICES 3.6.1 Over half of the national highways network is in bad condition. Also the road

safety record is poor. The country’s truck fleet is mostly made up of obsolete, under-powered and polluting vehicles and the trucks are often grossly overloaded. The truck operating speeds on the main corridors are only 40 – 50 kph for the container traffic, half of the truck speeds in Europe.

0

50

100

150

200

250

1990/91 1993/94 1996/97 1999/00 2002/03

Pax-km(billion/year)

Figure 3.3 Passenger Trip on Road Source: Pakistan Transport Plan Study – 2006, JICA


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3.6.2 In general in Pakistan, the journeys time for the trucks carrying the bulk cargoes is 3-4 times longer than in Europe.

3.6.3 For the over-view of the road sector key statistics, see Table 3.3.

Table 3.3 Road Transport Sector Key Statistics Particulars Units As of 2006

Length of Roads Km. 260,000

National Highway and Motorway Km. 10,849

Paved Roads % 59

Access to All-Season-Roads* % 76

Road Density - LAND km/1,000 sq. km. 326 Source: World Bank Data - 2006

3.7 CHALLENGES 3.7.1 Although the sector is functional, its inefficiencies with long waiting and

travelling times, high costs, and low reliability are dragging the country’s economic growth. These factors also reduce the competitiveness of the country’s exports, increase the cost of doing business in Pakistan and constrain Pakistan's ability to integrate into global supply chains which require just-in-time delivery. The poor performance of the sector is estimated to cost the economy 4-6 percent of the GDP each year.

3.8 REGIONAL DYNAMICS AND THE KEY GOVERNMENT INITIATIVES 3.8.1 There is a growing recognition within the Government of Pakistan (GOP) that the

sustainability of the economic growth is closely linked to the efficiency of its transport system.

3.8.2 In order to support the sustained growth and an increased competitiveness, the GOP has taken a strategic and a holistic approach to the transport sector and has launched a major initiative to improve the trade and the transport logistics chain along the north-south ‘National Trade Corridor’ (NTC); linking Pakistan’s major ports in the south and south-west with its main industrial centres and the neighbouring countries in the north, north-west and the east.

3.8.3 The ports, roads and the railways collectively along the NTC handle 95 percent of the external trade and 65 percent of the total land freight serving the regions of the country which contribute 80-85 percent of the GDP.


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3.9 NATIONAL TRADE CORRIDOR (NTC)

3.9.1 The National Trade Corridor is a major strategic initiative by the Government of Punjab to improve the logistics chain throughout the country and shall interlink the country with all the three adjoining regions of the South Asia, the Central Asia and the West Asia.

3.9.2 An efficient logistics chain comprising roads, railways, ports and airports was a critical element to reduce the cost of business, improve competitiveness and enhance productivity of goods in the country. In the case of the opening of the eastern borders commercially with the India; shall provide a major trade corridor through the Punjab province to Afghanistan, Central Asian countries, Iran and to China. So Punjab needs to gear up and prepare a strategy in this direction to improve and develop a truly competitive infrastructure and key urban areas of the international standards.

3.9.3 In view of the NTC and similar challenges, the Consultants have proposed viable transport strategies in the subsequent sections to make transport infrastructure of the urban areas of Punjab an engine of the economic growth; alleviating poverty and providing an equitable urban transport system.

3.9.4 For the NTC, see Figure 3.4.

Figure 3.4 National Trade Corridor Source: World Bank, 2005

NTC:


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3.10 MOTORIZATION 3.10.1 Pakistan 3.10.1.1 There has been tremendous growth in the automobile manufacturing sector in

the past five years. The vehicle production, including cars, trucks, motorcycles, tractors, buses and other commercial vehicles has sky rocketed from 209,561 units in 2001-02 to 380,000 units in 2005-06, an increase of around 45% in the last five years. Also the passenger cars and the light commercial vehicles have seen substantial growth; from 49,092 units per/year in 2001-02 to about 86,590 units/year in 2005-06; an increase of 43%.

3.10.1.2 The motorcycles have had the highest growth, increasing from 133,334

units/year in 2001-02 to 265,769 units/year in 2005-06; an increase of around 50%. This upsurge has resulted due to good macro economic fundamentals, the advent of car financing which has made purchasing of cars more affordable and increases in the per capita income.

3.10.1.3 The demand for mobility and vehicles increases, as the economic development

takes place. The annual motor vehicles demand is estimated at over 400,000 units, which is being met primarily from the local sources and also from the imports. The vehicle industry demonstrated a very impressive growth rate of 46.7 percent during the past fiscal year, mainly due to growth in demand and the availability of the consumer credit and the low interest rate loans.

3.10.1.4 The motorization in Pakistan, despite of this rapid growth is in the lowest

quartile. Actually Pakistan is in the pre-motorization stage, where 8 people out of a 1000 have cars.

3.10.1.5 The total number of motor vehicles on road in Pakistan is over 6.8 million units;

where as the registered motor vehicles on road are around 5 million.

3.10.1.6 For the registered vehicles on road, see Table 3.4.


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Table 3.4 Number of Motor Vehicles Registered

Source: Federal Bureau of Statistics-2006

3.10.2 Punjab 3.10.2.1 The astronomical vehicular traffic increase, without adequate management is

becoming a serious problem and major cause of stress among the citizens and is one of the major causes of pollution in the cities. The number of registered vehicles in Punjab, from December 2002 to September 2006, increased from 2.6 million to 4.5 million, which is a growth of more than 10 percent a year.

3.10.2.2 The total number of registered vehicles in the five major cities of Punjab was

about 2.8 million in September 2006, with an increase of more than 13 percent a year.

3.10.2.3 The city of Lahore amongst all the five big cities of Punjab has the highest

annual vehicle growth rate of about 16 percent, Gujranwala stood close second with around 16%; Faisalabad stood third with around 13%, Multan stood fourth with about 12% and Rawalpindi stood fifth with about 10%. For details, see Table 3.5.

Table 3.5 Registered Motor Vehicles in Five Big Cities of Punjab

S. No. City Vehicles (2002) Vehicles (2006) Growth Rate (%/Annum)

1 Lahore 842,388 1.52 million 16.00 2 Gujranwala 125,000 225,000 15.83 3 Faisalabad 227,000 369,000 12.91 4 Multan 235,000 370,000 12.01 5 Rawalpindi 179,000 260,000 9.78

Source: Excise and Taxation Department, GoPunjab; 2006


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3.10.3 Non-Motorized Vehicles/Transport (NMT) in Punjab

The number of non-motorized vehicles in Punjab in 2006 was more than 5,839,803. This includes 228,873 registered and 5,610,930 unregistered un-registered NMT. There are 5,491,132 bicycles, 43,237 registered and 20,537 unregistered tongas, 32,158 registered and 13,711 unregistered carts, 115,165 registered and 55,182 unregistered animal carts and 38,313 registered and 30,368 unregistered hand-pushed carts. For details, see Table 3.6. Table 3.6 Non-motorized Vehicles/Transport (NMT) in Punjab in 2006

Category Registered Un-registered Bicycles 5,491,132 Tongas 43,237 20,537 Carts 32,158 13,711

Animal carts 115,165 55,182 Hand-pushed carts 38,313 30,368

Total 228,873 5,610,930 Source: Excise and Taxation Department, GoPunjab; 2006


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4. TYPICAL TRANSPORTATION RELATED ISSUES

IN PUNJAB AND ITS FIVE BIG CITIES 4.1.1 Urban transport is one of the most important sectors facing extreme

challenges due to rapid urbanization and motorization. Due to lack of appropriate urban transport policies, infrastructure development projects have often been provided in thinly populated areas causing inequity in an urban transport system.

4.1.2 Due to lack of coordination and vision, transport problems have not been

viewed in an integrated way. The current public transport services suffer from inappropriate operation timetables, inefficient use of road space and poor condition of public transport facilities (including bus terminals and buses) due to the absence of proper government regulations.

4.1.3 The current deteriorating state of urban transport condition may worsen with

time if development challenges are not met or dealt with in a planned and a systematic manner. Such issues related to urban transport will be addressed in detail in this study; also keeping in view the vision of the Millennium Development Goal of the World Bank.

4.1.4 The Consultants in this section have highlighted the common and major

transportation related problems and issues faced by the urban centers in Punjab.

4.2 RAPID URBANIZATION AND THE ASSOCIATED PRESSURE ON

THE URBAN TRANSPORT 4.2.1 General Background 4.2.1.1 The dramatic socio-economic changes and an un-equal distribution of

resources geographically have led to rapid urbanization and emergence of mega cities.

4.2.1.2 Pakistan, like many other developing countries is experiencing a rapid

migration of rural people to the cities, creating problems of unemployment, crime and slums. This results in swelling urban population with strained economic resources.

4.2.1.3 Pakistan is currently rated as one of the most urbanized countries in South

Asia, with one third of its total population (around 169 million) living in cities.


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4.2.1.4 Pakistan is a very densely populated country, especially in the central, urban and fertile areas. The fact that much of the country is either mountainous or desert helps to increase this density.

4.2.1.5 The most densely populated province is Punjab, with over 400 persons per

square mile with Balochistan being the least populated province with about 24 persons per square mile.

4.2.2 The Urbanization Pressure on the Punjab Province and its Five Big Cities 4.2.2.1 The province of Punjab is also Pakistan’s most urbanized province, with

roughly 36% of its population living in the urban areas. The capital of Punjab, Lahore is home to about 8 million people.

4.2.2.2 The Punjab Province also has four other cities with populations in excess of

one million, namely Faisalabad, Rawalpindi, Multan and Gujranwala.

4.2.2.3 The population density of Punjab is more than 3½ times the rest of Pakistan. 47% of the urban population of Punjab lives in the 5 large cities mentioned above.

4.2.2.4 These cities, suburbs and the economic regions surrounding them produce an

estimated 80% of the industrial production of Punjab and 33 % of the country’s GDP.

4.2.2.5 The combined total population of five big cities is estimated at 27 million

out of which approximately 15 million of the population lives in urban areas. The city of Lahore with an estimated population is over 8 million and has the highest urban population of nearly 84%.

4.2.2.6 Given its average national urban structure and still rapidly urbanizing process,

Punjab is perhaps uniquely positioned to have its cities placed at the center of Pakistan’s economic development and poverty alleviation strategies. Urban transport is one of the most important sectors facing extreme challenges due to rapid urbanization and motorization.

4.2.2.7 However, cities of Punjab face many challenges, including a projected doubling of the population by 2021 if the current growth rates hold.

4.2.2.8 The basic problems arising in accessing jobs, education, recreation and similar

activities is becoming increasingly time consuming. The number of man hours is lost due to traffic jams. The primary reason for this has been the explosive growth in the number of motor vehicles, coupled with limitations on the amount of road space that can be provided. These issues have already been discussed in general in the preceding sections.

4.2.2.9 The cost of travel, especially for the poor, has increased considerably. This is

largely because of the use of cheaper non-motorized modes like cycling; whereas walking has become extremely risky, since these modes have to share the same right of way with motorized modes. Further, with population growth,


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cities have tended to spread and increased travel distances have made non-motorized modes impossible to use. This has made access to livelihoods, particularly for the poor, far more difficult.

4.2.2.10 The rapid motor vehicle growth has also caused severe air and noise

pollution, adversely affecting the health of the people and the overall quality of life.

4.3 LOW LEVELS OF URBAN SERVICE DELIVERY 4.3.1 The shortfalls in the urban services are not merely an outcome of aggregate

resource constraints. They are more fundamentally a function of the institutional, governance and financial arrangements that have defined the local service delivery and financing. Weaknesses in urban service delivery result from fragmented responsibilities at Local Government (LG) levels, weak accountability of public-sector institutions and supply driven models for prioritizing, planning and financing of the urban services.

4.3.2 In recognition of the major institutional, governance and financial

weaknesses that severely constrain urban service delivery, the Government of Punjab (GoPunjab) has felt the need for policy and the institutional reforms which shall be instrumental in improving the service delivery in a sustainable manner; especially for one of the most important sectors, i.e.; the urban transport.

4.4 INADEQUATE PUBLIC TRANSPORT SERVICE 4.4.1 There are around 1,200 large size buses operating in Lahore, Multan,

Gujranwala and Faisalabad. Most of the public transport is through overcrowded, poorly managed and rashly driven mini-buses and vans. There is a need to organize the public transport infrastructure, such as terminals, halting points and routes.

4.4.2 There is a big demand to introduce decent and an environmental friendly

public transport in the urban areas of Punjab. Also like Lahore, in the other four big cities of Punjab, such as Faisalabad, Gujranwala, Rawalpindi and Multan there is a need to work out the feasibility to determine the adequacy of a mass transit system.

4.5 CONGESTION IN URBAN AREAS 4.5.1 The road network has many congested

sections in cities and towns along the roads, which reduces travel speeds and increases the number of traffic accidents. Lack of local funds for urban roads and


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absence of road network plans in local municipalities may contribute to this effect.

4.6 OVER-LOADING 4.6.1 In Punjab around 90% commercial vehicles carry more than the standard

axle loads. The prime reason for overloading is the overwhelming presence of 2-axle trucks, which accounts for 70% in the overall truck fleet presently plying on the roads in Pakistan. The truck drivers commonly over-inflate the tyres to overload the trucks, which put high stresses on pavement structures due to resultant less contact area.

4.7 PREMATURE ROADS FAILURE 4.7.1 Over the last few decades, the newly constructed or rehabilitated roads in

Punjab underwent rapid deterioration and premature failure. There has been a fast growing concern for finding out the root causes of failure and introducing the effective and innovative measures in prevalent specifications and the design practices.

4.8 DRAINAGE ISSUES 4.8.1 The issue of proper drainage has never been addressed in a befitting manner

in the design and construction of roads in Punjab. The inadequate surface as well as sub-surface drainage of roads has been causing grave problems. The absence of quick drainage of rainwater has caused defects like potholing, ravelling, cracking and even deformation and congestion.

4.8.2 The water logged effect in the areas where there are large networks of

unlined irrigation channels has severely damaged the roads. In the rolling terrain, the non-existence of the sufficient drainage system not only damages the roads but also causes land sliding and erosion problems.

4.9 PARKING ISSUES 4.9.1 The cities have spurted many high rise

buildings in it, but sadly, most of the buildings failed to address parking issues. So parking has become a major problem in the five big cities of Punjab; causing all sorts of problems, like decrease in access to places, increase in travel time and reduced average speed.

4.9.2 The road density is also affected, causing difficulty in traffic flow. To

resolve this dilemma, very few parking plazas have been made and which


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are outnumbered by the rapid increase in the number of vehicles on the roads. Another affective alternative is road side parking which is managed on an adhoc bases and a token system is used; which to some extent addresses the parking issue but on the other hand it increases traffic congestion.

4.9.3 Also the building and and-use related laws and regulations inadequately

address parking issues. Also the enforcement mechanism for the parking rules and regulations are generally ineffective and weak.

4.10 INADEQUATE RELATIONSHIP BETWEEN LAND-USE AND

TRANSPORTATION 4.10.1 There is mixed land-use, lack of proper zoning and inadequate building bye-

laws which do not properly address the parking and allied issues. Also an ineffective enforcement of rules and regulations is all causing collateral problems. There is a need to have a strong relationship between land-use and transportation elements.

4.11 MIX OF TRAFFIC 4.11.1 The mix movement of freight and

passenger traffic is another concern of road safety problem. The animal driven vehicles and the NMT shown in the picture need to be eliminated from using the main track. These slow mode traffic cause disturbance in traffic resulting in acceleration of other speedy passenger vehicles and prompting severe traffic accidents. It is observed that such animal driven vehicles and NMT are frequently parked beside shoulder or move close to the pedestrians and create many problems.

4.11.2 In Lahore only, the maximum daily estimated trips of all modes are by

pedestrians; since the pedestrians in Lahore make around 8 million trips /day.

4.11.3 For details, see Table 4.1.

Table 4.1 Estimated Daily Passenger Traveling in Lahore Public Transport: 3.409 m Trips / Day Private Vehicles: 6.208m Trips / Day Motorbike/ Pedal Cycle (Two wheelers): 3.314m Trips / Day Pedestrian: 8.050m Trips / day TOTAL: 17.667 m Trips / Day

Source: TEPA, Lahore; 2007


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4.12 ENCROACHMENTS 4.12.1 Due to encroachments, the NMT and two wheelers have to come on high

speed lanes which make traveling difficult and increase the risk of accidents as well as traffic congestion. There is a strip commercial development along the transportation corridors without proper offsets, set-backs and access management as per the bye-laws; causing severe encroachments and traffic jam issues.

4.13 ROAD SAFETY PROBLEM 4.13.1 In Punjab, 6,629 injured including 3088 killed, were reported to police in

2004-05. For details, see Table 4.2.

4.13.2 The estimated motor vehicle injuries in 2006 by the National Road Safety Secretariat, Ministry of Communications, and Government of Pakistan were about 2 Million, which showed that police was reporting less than 1% of all motor vehicle injuries. The regional comparison with other Asian countries revealed that the reported fatalities in Pakistan are 4.5 times less than that in other countries.

4.13.3 The economic cost of road crashes and injuries is estimated to be over 100

billion rupees for Pakistan. However, the loss is more than just numbers, since road traffic injuries push many families more deeply into poverty by the loss of their bread-earners and inflict a tremendous continuous burden on the disabled victims and their families and on health care system.

4.13.4 It is estimated that approximately 7,000 to 10,000 people die per year due to

road traffic accidents. The number of fatality may be even higher because of an unsatisfactory system of reporting and follow-ups.

4.13.5 In general, the passenger buses are involved in far more accidents than other

vehicles. Overall fatality levels may be higher in heavier vehicles, such as buses, trucks and wagons are almost the same.

Table 4.2 Road Accidents

Punjab Pakistan

year killed Injured Total killed Injured Total 1996 /97 2,891 5,819 8,710 5,301 11,697 16,998 1997 /98 2,742 5,868 8,610 5,141 11,229 16,370 1998 /99 3,013 6,284 9,297 4,196 9,817 14,013 1999 /00 2,972 6,307 9,279 5,371 11,797 17,168 2000 /01 3,212 7,376 10,588 5,627 13,479 19,106 2001 /02 3,271 7,185 10,456 5,421 12,942 18,363 2002 /03 3,124 6,387 9,511 5,248 11,922 17,170 2003 /04 2,806 6,300 9,106 4,813 10,643 15,456 2004 /05 3,088 6,629 9,717 5,199 12,927 18,126


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Source: Accident Statistics （1991-2005） NTRC 4.14 INEFFECTIVE AND OBSOLETE TRAFFIC LAWS 4.14.1 In general, traffic related regulations are obsolete and enforcement of rules is

quite weak as evident from the chaotic and an in-disciplined traffic on roads in the big cities of Punjab.

4.14.2 This has resulted in high rates of loss of life, injuries; delays and damages to

properties.

4.14.3 The traffic laws are not though applied on cyclists, animal-drawn carts, hand-pushed carts and pedestrians; even though the NMT makes up around 70 percent of the total road users.

4.14.4 The typical traffic enforcement fines are quite low and are in the range of

around Rs. 50 to Rs. 300. Also even illiterate people can possess driving licenses.

4.14.5 Traffic police does not have the adequate authority to remove

encroachments. Also there are no appropriate punishments for damaging the road infrastructure; and compensation for a death in a road accident is around only Rs 10,000 with a third party insurance.

4.15 POLLUTION 4.15.1 Air pollution in the cities has

become a major problem as there are no controls on emissions. The National Conservation Strategy (NCS) Report estimates that the average Pakistani vehicle emits twenty-five times as much carbon monoxide, twenty times as many hydrocarbons and more than three and one-half times as much nitrous oxide in grams per kilometer as the average vehicle in the US.

4.15.2 The motorcycles and rickshaws due to their two-stroke engines are the most

inefficient in burning fuel and contribute most to emissions. The rickshaws have more than doubled in number, while motorcycles and scooters have increased seven-fold over the past 20 years.

4.15.3 The vehicle-based environmental pollution has already reached alarming

levels and further delay in bringing it under control could have disastrous effects.

4.15.4 According to recent World Bank data, air pollution causes 168,000

premature deaths annually in Pakistan and the urban air pollution causes


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average annual damages in the range of US $369 million to the Pakistani exchequer.

4.15.5 A study carried out by the Ministry of Environment, GoPakistan highlights

that about 16.28 million people (40 percent of the total urban population) of Pakistan are at a health risk due to air pollution because the province does not comply with the World Health Organization (WHO) ambient air quality standards.

4.15.6 The Environment Protection Department (EPD), GoPunjab is trying to

improve the environment by provision of loans to owners of two-stroke vehicles to replace their engines with natural gas burning units after a partial ban on these vehicles on selected routes.

4.15.7 This ban will help cut pollution in the big cities; such as Lahore, Faisalabad,

Rawalpindi, Gujranwala and Multan. Such a ban exists in the Federal Capital, Islamabad and has gone some way to improve the air quality.

4.15.8 There is a need for a viable plan for the phasing out of about 200,000

vehicles (according to EPD figures) running on two-stroke engines in the Punjab province.

4.15.9 The Punjab Government is also encouraging special buses and the public transport on the CNG.

4.16 INSUFFICIENT BUDGET 4.16.1 The amount of budget allocation each year to the city governments for the

transport sector as compared to rapidly increasing maintenance cost of the roads is insufficient. As a result, the conditions of the roads continuously deteriorating which is another reason for slow traffic movement. The other issues include an inappropriate base for the allocation of funds and lack of communication and links between the different departments which gives rise to a whole separate breed of issues like an overlapping of roles and responsibilities among the departments and a need to build the institutional capacity.


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5. URBAN TRANSPORT POLICY/PLANNING

ASSESSMENT 5.1 GENERAL OVER-VIEW OF THE EXISTING SITUATION REGARDING

THE FUNCTIONING OF THE TRANSPORTATION SECTOR RELATED INSTITUTIONS IN THE PUNJAB PROVINCE

5.1.1 It has been observed that the local governments are not functioning adequately, as

the respective departments so far have not been devolved in letter and spirit.

5.1.2 In the proceeding sections, the Consultants have highlighted the typical institutions involved in the various urban transport related activates in the five big cities of Punjab:

• In the transport sector, in a typical example of Lahore, there is a Works and

Services Department of the CDGL looking after the roads, and then there are TMAs dealing with the road sector, working in their own territories.

• Also the TEPA and the Engineering Wing both working under the LDA are

operating in parallel in the roads related services in Lahore.

• The PHA is another autonomous body; which looks after the parks and horticulture is also maintaining the green belts along the roads and also collecting the fee from the road-side advertisement and the billboards, without giving any concurrent revenue share to the road related activity.

• The C&W Department is also actively involved in urban road infrastructure

development.

• The engineering wings of the City Governments or the Development Authorities in a loosely defined manner are simultaneously performing the road engineering and basic traffic engineering functions in an adhoc manner.

• The Transport Department, GoPunjab is managing the public transport in

the five big cities through the DRTA.

• The Traffic Police is working independently as a separate institution.

• The development and building control, closely linked to the transportation related activity is managed by the LDA and the CDGL.


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• The Planning and Development Department, GoPunjab, prepares such as the ADPs for all the government departments, Five Year and other Provincial Development Plans and deals with the provincial economic policy issues and the foreign assisted/funded projects. This is a very important institution, which provides the overall economic and physical policy and development framework for the province.

• The Excise and Taxation Department, GoPunjab apart from other functions

is collecting motor vehicle related taxes and the registration fee.

• The Housing and Urban Development and Public Health Engineering Department, GoPunjab; supposedly manages the physical, regional and urban planning aspects of the cities and towns and administers the Development Authorities.

• The Local Government and Rural Development Department is an

administrative department of the city/local governments to manage the devolution plan and PLGO 2001 in the province.

• The Environmental Protection Department, GoPunjab prepares policy and

standards for Environmental Protection and implements National/Punjab Environmental Quality standards.

• The Cantonment Boards and the DHAs, operate separately under the

Ministry of Defense, Government of Pakistan.

• Also there are numerous utilities organizations, like WAPDA, SNGPL and the PTCL working independently, without much coordination with the various stakeholders for their infrastructure running along and across the transportation corridors.

5.1.3 At present there is a need to have clear and consistent policies and plans

pertaining to the critical elements of the urban and regional planning; which are mostly either inadequate or antiquated and not practical to implement with reasonable results.

5.1.4 In order to highlight multiple institutions with overlapping activities and

managing various transport related activities, see Table 5.1.


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Table 5.1 Existing Role of Departments Activity Institutions Managing the Activities Carriageways CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA** Footpaths CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA Pedestrian passes CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA Street lights CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA Traffic signals CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA Parking areas/services CDG, DA, C&W, Cantt. Board, DHA, NHA Landscape PHA, CDG, DA, C&W, Cantt. Board, DHA, NHA Traffic Enforcement Traffic Police Road-side drainage WASA, CDG, DA, C&W, Cantt. Board, DHA, NHA Public transport Transport Department, CDG Bus stations Transport Department, CDG Bus depot Transport Department, CDG Bus/Truck Workshops Transport Department, CDG Freight/trucking Transport Department, CDG Zoning regulations CDG, DA, Cantt. Board, DHA Land-use regulations CDG, DA, TEPA, Cantt. Board, DHA Building bye-laws CDG, DA, Cantt. Board, DHA Master plans P&D, HUD, LG&RD, CDG, DA, Cantt. Board, DHA Provincial plans P&D, HUD, LG&RD Regional plans Planning Commission, P&D, HUD, LG&RD

* TEPA is only in Lahore ** Highways under the NHA passing through the urban areas 5.1.5 As discussed in the preceding sections, overlapping and multiple activities of the

various organizations in the transport sector in the same city has caused gross inefficiencies, inadequate decision making, low level of institutional capacity and overall poor delivery mechanism.

5.1.6 These overlapping and multiple activities have hampered to develop a proper transport system in our towns and cities.

5.2 Policy and Plans in Urban Transport Development 5.2.1 Present policy with respect to transport is not comprehensive. It is fragmented. It

deals with individual subjects of fare fixation, route licensing and clean air initiatives like operation of gas operated public transport. It does not deal with issues of unprecedented road congestion in big cities. It does not speak of service provision to the urban poor. It does not deal with energy consumption problems and environmental issues relevant to transport in cities. It never covers constantly rising issues of road safety especially those of pedestrians and bicyclists. It does not deal with growing demand for public transport and in particular preferential treatment for bus operation.


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5.2.2 There is no transport policy as such developed by the provincial government. The

government has never thought beyond route licensing and fare fixation. However, three years program of developments proposed by TEPA and LDA are covering the following:

• Traffic system capacity enhancement • Preserve and maintain the available system and build upon it for

additional capacity • Enhance road safety and improve city environment. • Program for infrastructure development supported economy and

community values 5.2.3 Based on stakeholder’s comments it is found that on certain routes waiting times

for the passengers are too long where as on certain routes buses wait too long for the passengers to be filled and then move. Such a situation prevails because of the fact that routing and licensing is not based passenger demand analysis but based on convenience of operators and the regulator. Efficiency is acceptable on certain routes but reliability is poor, there being no scheduling at all. There is too much equity eroding efficiency. Buses suffer because of undue competition with transits. Presence of more than 80,000 rickshaws not only causes congestion but serious threat to efficiency and service quality. Whole public transport is grossly mismanaged with least objective of service provision.

5.2.4 There is no local and national level policy to deal with urban transport policy as such; however, there are directions available both from federal and provincial governments for development and preparation of mid term development framework, which is a high quality document with professional approach.

5.3 POLICY MAKING INSTITUTIONS 5.3.1 Federal 5.3.1.1 The Planning Commission

The Planning Commission prepares the national five year development plans and the annual Public Sector Development Programs (PSDP) in collaboration with the concerned federal ministries and the provincial departments.

5.3.1.2 Functions of the Planning Commission

One of the tasks of the Planning Commission is to prepare a comprehensive National Plan for the economic and social development of the country. The National Plan is based on the national policy, covering all sectors of the economy. The Planning Commission has prepared the Mid Term Development Framework (MTDF) 2005-10, which deals with the macro-economic framework, has set targets to achieve the millennium development goals, which encompasses


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environment and sustainable balanced development; covers rural and urban development, measures required to accelerate out-put and growth; upgrading the physical infrastructure, including transport and supporting the private sector.

5.3.1.3 The National Transport Research Centre (NTRC)

The NTRC is the only public sector research organization carrying out research in the transport sector to provide support in the areas of policy formulation, transport planning and road engineering to the various government transport and other related organizations.

5.3.2 Provincial

The P&D Department in coordination with, such as the LG&RD Department, HUD & PHE Department, Transport Department, C&W Department, Environmental Protection Department, Excise and Taxation Department are supposedly providing the various policies and plans pertaining to the various aspects and elements of the urban and the regional planning.

5.3.3 Policies/Plans Assessment

5.3.3.1 The policies, plans and studies in general do not had probably the scope of work

to address the transport and the allied areas at the district and the city levels. So the problems identification and thematic direction for the cities and the districts in terms of transportation and urban and regional planning is very much required. As most of the studies discussed in the preceding sections give an over view at the national level and do not discuss the assessment, issues and policy guideline in detail of the transportation sector specifically at the district level and in the urban centers. The following section deals in general with some of the recently prepared policies, plans and studies that have bearing on the transportation sector:

5.3.3.2 The Pakistan Transport Plan Study, prepared by JICA in 2006 covers all transport

sub-sectors and provides a multi-modal transport plan at macro level for the country. The major objective of the study is to formulate a short term (2005/6 to 2009-10) and a master plan (2005/6 to 2024/25) for the development strategy of the national transport system of Pakistan, covering all transport modes. The Pakistan Transport Plan Study also identified the priority projects and carried out feasibility studies for the selected projects. The Plan also provides guidelines to develop professional and the technical capabilities in the transport sector. The Transport Policy Support Study, prepared by the ADB in 2007 at the national level is essentially problems and issues oriented and have identified the most viable recommendations to address the pressing areas, which need immediate attention.


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5.3.3.3 The other main relevant studies carried out are namely, the National Housing Policy, 2001; which gives a general policy direction in the housing sector and the Transport Sector Development Initiative (TSDI) prepared by the World Bank in 1999.

5.3.3.4 The Pakistan Environmental Protection Act (PEPA), 1997 pertains to the

environmental related matters, such as regulations, impact assessments and has also set National Environmental Quality Standards (NEQS).

5.3.3.5 The Master Plans have been prepared, such as of Lahore in 2002 by the

LDA/CDG; of Multan in 1998 by the MDA and of Faisalabad by the FDA in 1987. The JICA in 1991 prepared, Comprehensive Study on Transportation System in Lahore. Also for Rawalpindi numerous traffic and transportation related studies were conducted by the RDA in the early 1990s. These Master Plans due to multiple complexities of administrative, regulatory, technical and financial reasons have not been regularly prepared and also not periodically updated and lacked proper implementation.

5.3.3.6 So far there is no definite policy for the urban development and the land-use

planning in the province and the country. The city governments of the five big cities; though custodians of their respective territories; in the eyes of the masses have highly distributed and overlapping functions with the low level of capacity to deliver. This has resulted in poor service delivery, inadequate capacity to plan and execute the projects and there is confusion and a weakly managed transportation infrastructure.

5.4 RECOMMENDATIONS TO STRATEGIC POLICY DIRECTIONS 5.4.1 There is a need to have clear and consistent policies and plans pertaining to the

critical elements of the urban and regional planning; which are mostly either inadequate or antiquated and not practical to implement with reasonable results.

5.4.2 The transportation is a dynamic and an interactive process interlinked with a

variety of other activities. Therefore the transportation system can not be improved in isolation. The Consultants recommend that it is required to improve the governance, efficient service delivery mechanism, unified and decentralized chain of command at the grass root level.

5.4.3 There is an urgent requirement to consolidate all the departments as per the PLGO

2001 devolved under this system to have an independent and a unified transport institution under the respective city governments. As all the functions, such as planning, building, development control, public transport, traffic engineering, roads development, drainage, environmental regulations, enforcement of traffic, law and order, financing, coordination with the various institutions are supposedly


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an essential ingredients to make an effective transportation policy and system for a city.

5.4.4 In order to develop an accountable system, all the institutions as per the devolution

plan supposedly under the City Government should effectively come under its umbrella. There is a requirement to place the requisite check and balance system as prescribed in the laws and procedures and empower the Nazim, the elected house of the councilors and the city governments in a true sense and make them accountable to the public in a genuine and a transparent way.

5.4.5 There is a requirement to consolidate all the transportation and the urban planning

related components under the City District Government. So under the respective city governments, there is an immediate requirement to have fully functional departments/institutions with an efficient intra and inter coordination. Also there is a need for close liaison of these CDG’s departments with the respective provincial and the federal organizations.


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6. URBAN TRANSPORT INSTITUTIONAL SSESSMENT

6.1 Existing Framework for the Urban Transport Planning and Management 6.1.1 In order to assess the existing legal framework for the urban transport planning

and management of the key government agencies, the Consultants in the proceeding sections have highlighted the relevant selected verbatim abstracts from the “Punjab Local Government Ordinance (PLGO) 2001” and the “Punjab Government Rules of Business” for the functions of the City District Governments and the Punjab Government Rules of Business for the functioning of the various departments which have an important bearing and effect on the transport sector.

• The Provincial Motor Vehicles Ordinance , 1965 . • The Provincial Motor Vehicles Rules , 1965 – regulates the motor vehicles

through out the Four Provinces , i.e . Balochistan , N.W.F.P , Punjab and Sindh except the Tribal Areas .

• The Motor Vehicles Act , 1939 -- extends its jurisdiction throughout Pakistan except Tribal Area .

• The Fatal Accidents Act , 1855 --- provides the methodology provisions for the payment of compensation to family for loss caused by the death of a person on account of an actionablre claim.

• The National Highway Safety Ordinance, 2000 – extends to the whole of Pakistan and the Northern Area for providing safe driving on the national highways and motorway and for the matters connected therewith

6.2 THE PROVINCIAL MOTOR VEHICLES ORDINANCE, 1965 6.2.1 The Provincial Motor Vehicles Ordinance, 1965 being Provincial law related to

the whole of the provinces of Balochistan, N.W.F.P., Punjab and Sindh except the Tribal Area. It consists of 9 Chapters, 125 Sections and 14 Schedules.

6.2.2 The motor vehicles are controlled by the “Motor Vehicle Law 1965”. Motor

vehicles contain Public transport vehicle, a goods vehicles and Freight traffic like locomotives and Tractors. Transport vehicles are required to obtain the “Fitness Certificate” prior to Registration and then ply these vehicles on the permitted routes or areas issued by “Provincial or District Transport Authority.

6.2.3 Transport Department is the provincial Transport Authorities, and functioning Policy making and regularization of public transport vehicles, defined in MVO, 1965 and MVR 1969. Home Department is functioning the Licensing of Drivers


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of Motor Vehicles and also Enforcement of traffic law and Motor Vehicle ordinance, 1965. Excise and Taxation Department impose taxes on motor vehicles, according to MVO,1965 and MVR 1969. Environment Protection Department, Provincial Environment Agency, monitoring and control of traffic generated air pollution.

6.3 ASSESSMENT OF ROAD AND TRANSPORT AGENCIES 6.3.1 Relevant Agencies 6.3.1.1 About a dozen government agencies have been identified that play a role in the

management of the road and transport system. Some of them prescribe the physical infrastructure such as roads and pedestrian facilities, others prescribe public transport services , others prescribe the management of the public space available for the movement persons, and goods.

6.3.1.2 Table 6.1 summarizes the framework of transport-related institutions. Following are the Local Government legislations of 2001, many of these agencies

report to the Nazim of the City District Government. Some are agencies of Provincial Government, while others maintain direct links to both the city and provincial Governments.

Table 6.1 Government Agencies with Direct Responsibilities for Transport

Government of Punjab

City Distrct Government

Responsibilities for Physical Infrastructure

CDG office of Woks and Servicies, under EDO(MS) ×

Lahore Development Authority(Rev.) × ×

Department of Communications and Works ×

Urban Unit of Planning and Development Department × Cantonment Boards and Defence Housing Auth.(Gov.Pakistan)

National Highway Authority (NHA) (Gov. of Pakistan)

Responsibilities for public transport

Transport Department ×

District Regional Transport Authority ×


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Responsibilities for Public Space Management

CDG office of Municipal Services under EDO(MS) ×

CDG office of Revenues, under EDO (Rev.) ×

Parks and Horticultural Authority (PHA) ×

Traffic Polis × ×

Cross Cutting responsibilities Traffic engineering and Transport Planning Agency (TEPA) × ×

Town Municipal Administrations (TMA)

Punjab Planning and Development Department (P＆D） ×

6.3.2 City District Government 6.3.2.1 The Local Government Plan 2000 and the Local Government Ordinance 2001

provide for the establishment of City District Government to respond to the need of five big cities having more than million populations.

6.3.2.2 The City District Government consists of Zila Nazim and District Administration.

The CDG is competent to hold, acquire or transfer any property, to enter into contract and sue or be sued through the District Coordination Officer (DCO).

6.3.2.3 In every District, the government appoints a DCO who is a civil servant of the

Province. He is the coordinating head of the District Administration, and his functions are ensure the coordination of the various District Government officers , and important role related to the transportation is to prepare a report on the implementation of development plans, where it contains schedule and scope of the work to be implemented.

6.3.2.4 The activities of any District are assigned to a number of groups and offices, each

of which is headed by an EDO. He has important functions and powers to supervise the business, one of which is to prepare development plan and propose budgets.

6.3.2.5 Some agencies such as LDA, TEPA, WASA, and the DRTA report either the

DCO or the Ziala Nazim. There are eleven EDOs responsible for the many


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subjects. To pick up the item related to the transportations such as revenue, community development, finance and planning, municipal Services(MS), works and services(W ＆ S) including services for streets and public spaces management.

6.3.3 Agencies Responsible for Physical Infrastructure 6.3.3.1 The CDG office of Works and Service , under the EDO (W＆S), is conceived as

the main agency responsible for the management of the urban street system. Most of its senior staff were transferred from the GoPunjab Construction and Works Department. Therefore it seems that the officers belonging to city government are leaded by the provincial government more than leaded by the CDG. But it is expected that shortly this office will be strengthened and assume all function related to public works in the city.

6.3.3.2 Headed by the EDO(W＆S) who also carries the title of Chief Engineer, this

group of officers responsible for the construction, implementation and maintenance of all roads and public buildings in the city, with the three exceptions. • The areas developed by LDA • Areas administered by the Cantonment Board • The National Highway controlled NHA

6.3.3.3 The GoPunjab Communications and Works Department was set up in 1962 in

compliance with the West Pakistan Highways Ordinance 1959. It is responsible for Government Buildings and, with regard to the highway sector, carries out the following functions. • Defining standards and specification for road and road facilities • Planning, Designing, construction, maintenance, repairs and improvement of

road and road facilities such as bridges and culvert . • administration of road and road facilities and the lease of land for service

stations; • road research and material testing; • execution of works on behalf of other agencies; and • the Managing Director of WASA and the Managing Director of TEPA

6.3.3.4 Lahore development Authority (LDA) has an Engineering Wing which, among other functions, is responsible for (a) the execution of development works in LDA housing schemes and (b) the construction of roads, flyover and underpasses in the city. In addition to road construction as part of housing schemes, LDA carries out the urban road construction – usually with funding of the provincial Annual Development Program. Planning coordination with other agencies appears to be scarce.

6.3.3.5 The urban Unity is one of the divisions of GoPunjab Planning and Development

Department, established in March 2006. It perform the planning of the urban


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management, including urban planning , urban transport , solid waste management , urban water ＆ sanitation and municipal finance.

6.3.3.6 The Punjab Transport Department is responsible for public transport

administration and policy making and planning in the province. It was established in 1987 under the West Pakistan Motor Vehicle Ordinance 1965. It is responsible for the licensing of public transport services outside of the major cities throughout the Provincial Transport Authority (PTA) and, by a statutory exemption, the licensing of bus service in large cities.

6.3.3.7 The District Road Transport Authority was set up in 2001 through a Notification

issued by the Punjab Transport Department, and The Provincial Motor Vehicle Ordinance authorized it. The CDG and PTA must be reported statutory. The provincial Motor Vehicle (Amendment) ACT 2005 granted the PTA the power to award bus routes. The DRTA continues to issue route permits for minibuses. It is chaired by the District Coordination Officer of CDG and includes the District Police Officer, the Executive District Officer(Works ＆ Services), and the Secretary DRTA as member.

6.3.3.8 In 2000,Provincial Motor Vehicles Ordinance 1965 (MVO) was amended to

permit the award of bus route franchises. 6.3.4 Agencies Responsible for Public Space Management 6.3.4.1 The City District government is organized eleven groups of offices, Several of

which address roads and public space aspect. Some important aspect of public space management are also handled by CDG under the direction of two additional EDOs. • EDO(Revenues) and • EDO(Municipal Services)

The former oversees a District Office (Public Facilities) who is responsible for parking control and disposes over the required “Car lifting” equipment. The latter oversees the District Office (Solid Waste Management) who organizes solid waste management in the city and also carries part of the responsibilities for surface drainage, together with WASA who maintains the basic system of sewerage and storm drains.

6.3.4.2 Many force hace acted to bring about the development patterns including changes in the demographic diversity in urban area, in the economic base of the nation and the shift to a service-based economy; in technology, especially communication technology; in life style such as the increase of worker. There needs to be a better understanding of such these forces and those that will affect development patterns of public space in the future. There also needs to be an understanding of the economic, social, and environmental implications of these forces.


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6.3.4.3 Parks and Horticulture Authority (PHA) was set up in 1998 under the GoPunjab Housing, Urban Development and Public Health Engineering Department. PHA aims followings

• enhance and develop horticulture; • promote awareness of horticulture • environmental protection • promote and carry out social activities for providing health and

entertainment to the public ; and • plantation of trees and transplantation of trees from the roaddihes which

inhibit the widening of roads.

6.3.4.4 In addition to its functions for landscaping and beautification, PHA also controls the regulation and placement of outdoor advertisements in the city. While this generates solid funding from private advertisers, it also can interfere with the visibility of traffic signals, and in some case, may affect traffic safety. Some problem are occurred in roadside, affecting road safety.

6.3.4.5 Traffic Police functions under the rules established by the Police Ordinance 2002,

the Police Rules 1934, the Criminal Procedure Code 1898, and the Motor Vehicles Ordinance 1965 and its Rules. Many traffic warden on the roads maintain the smooth flow of traffic with other field staff such as head constable, driver constable, and ticket clerks. There are few clerks currently, it is important to promote traffic discipline through persuasion and warnings.

6.3.5 Agencies with cross-cutting Responsibilities 6.3.5.1 The functions of Town Municipal Administrations (TMAs) are ranging from the

preparation and control of spatial plans to the regulation of markets and collection of some taxes and fees. Outside CDG, there are similar “Tesil Munishipal Administrative“with similar functions as defined for the Town Municipal Administrations. These include such items as the management of roads and streets, and traffic planning, engineering and management, including traffic signaling systems, signs on roads, street markings, parking places and transport stations , and facilities for public buses. And they also handle street maintenance on minor streets.

6.3.5.2 When TEPA(Traffic Engineering and Transport Planning Agency, only in Lahore) was set up in 1987, it was to perform all function and exercise all power of the Authority with regard to Traffic engineering and planning within the metropolitan area of Lahore. The New Agency was given 25 specific functions, as follows:

• Coordinate and prepare comprehensive Transportation plan fot the city ; • Plan , design and implement traffic engineering and traffic management

program : • Define design standards, specifications and layout of roads ;


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• Monitor and undertake regular traffic surveys on roads ; • Be responsible for the collection, analysis and publication of road accident

data ; • Identify the needs of the pedestrians and the facilities as they may be

provided; • Plan and design the public transport system for Lahore Metropolitan Area ; • Undertake the management, design and maintenance of traffic signals, road

signs and roads markings; • Design and maintain a parking policy and impose parking fee; • Require the concerned agency or authority to remove encroachments ; and • Make recommendation to Government with regard of traffic police.

6.3.5.3 A Transport Operation Committee was established by the order, which also

created TEPA in 1987. But it appears that the Committee never met, not even in the early days of TEPA. In recent years, concern about energy resources and the environment has grown across the world, these concerns are likely to increase in importance and continue to have a major impact on transportation decisions. As the population grows and economic development continues, greater efforts will be needed to preserve and enhance the natural and human environment. In the future, urban policy makers will be required to devote more attention to assuring that environmental impacts of transportation do not fall disproportionately on disadvantages communities and that all segments of society receive the benefit of transportation.


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6.3.6 City District Agencies 6.3.6.1 Transport Engineering Planning Agency, TEPA

TEPA has suggested the induction of an agency to handle the ever increasing urban transport. The feedback given by the TEPA is extremely relevant and very precise.

The following discussion is undertaken with TEPA:

• TEPA has the capacity to undertake urban transport projects but it is always compared with other government organizations undertaking road construction and managing fare of public transport.

Present policy is not properly fragmented. It lacks the following:

• Allocations for unprecedented road congestion • Service provision to urban poor • Energy and environmental problem due to transport in the cities • Road safety problems of cyclists and pedestrians • Increasing demand of pubic transport particularly growing preferential of bus

operation

TEPA has highlighted its efforts of congestion management by following measures:

• Improvement of road network and • Enhancement of intersection performance

As an institution, TEPA faces unjustified competition with fellow GoPunjab organizations. TEPA requires additional staff, software and funds to update its capacity to deliver present level of input. Also, their staff does need training in using software to undertake urban transport statistical analysis.

As per TEPA, the Provincial Government must look after transport policy alongwith long term and short term transport strategy. However, at city level, organizations like TEPA, whose role is marginalized under Devolution Plan of City District Government 2001, should make an independent autonomous authority under the umbrella of LDA which in turn is responsible for the following:

• Transport Planning


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• Traffic engineering and management • Rapid mass transit • Assist to collaborate public transport route, traffic regulation, transport policy

formulation 6.3.6.2 Faisalabad Development Authority

The following are mentioned:

• A Master Plan/Structure Plan of Faisalabad was originally developed in 1986 but could not be updated later.

• To ease the problems of the residents of the city, an NGO – FUTS (Faisalabad urban transport system) is established specifically to provide decent public transport system in the private sector in collaboration with city administration.

• There is no separate directorate in FDA to deal with transport planning and engineering issues

• FDA mentions the dire need of an organization like TEPA of Lahore to handle Urban Transport issues professionally

• Transport related institutions are performing their own functions individually. However, road construction is being undertaken by many departments like TMA’s, Highway Department, FDA etc. This overlapping results in serious co-ordination issues, repeated efforts etc.

6.3.6.3 Gujranwala Development Authority, Multan, and Rawalpindi

They also have similar problems as in Faisalabad.


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6.4 THE INSTITUTIONAL DEVELOPMENT AND STRENGTHENING

6.4.1 In order to highlight the multiple institutions with overlapping activities,

managing the various transport related activities, see Table 6.2. *********＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊＊***************

Table 6.2 Existing Role of Departments （Same as Table 5.1 ） Activity Institutions Managing the Activities Carriageways CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA** Footpaths CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA Pedestrian passes CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA Street lights CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA Traffic signals CDG, DA, TEPA*, C&W, Cantt. Board, DHA, NHA Parking areas/services CDG, DA, C&W, Cantt. Board, DHA, NHA Landscape PHA, CDG, DA, C&W, Cantt. Board, DHA, NHA Traffic Enforcement Traffic Police Road-side drainage WASA, CDG, DA, C&W, Cantt. Board, DHA, NHA Public transport Transport Department, CDG Bus stations Transport Department, CDG Bus depot Transport Department, CDG Bus/Truck Workshops Transport Department, CDG Freight/trucking Transport Department, CDG Zoning regulations CDG, DA, Cantt. Board, DHA Land-use regulations CDG, DA, TEPA, Cantt. Board, DHA Building bye-laws CDG, DA, Cantt. Board, DHA Master plans P&D, HUD, LG&RD, CDG, DA, Cantt. Board, DHA Provincial plans P&D, HUD, LG&RD Regional plans Planning Commission, P&D, HUD, LG&RD

* TEPA is only in Lahore ** Highways under the NHA passing through the urban areas ＊＊＊＊＊＊＊＊＊＊＊＊＊＊***************

6.4.2 As discussed in the preceding sections, the overlapping and the multiple activities of the various organizations in the transport sector in the same city has caused gross inefficiencies, inadequate decision making, low level of institutional capacity and overall poor delivery mechanism. These overlapping and multiple activities have hampered to develop a proper transport system in our towns and cities. Transportation policy makers in urban area will face a changing context driven by economic, demographic, and technological change. Transportation system will need to be improved within the constraints of limited budgets and environmental impacts. A wide range of institutions have been created at the urban and district level to address these issues, but these institutions will need to evolve as wel to accommodate expanding issues and new participants in the policy making process.


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• There is a need to strengthen the existing infrastructure. As the Punjab Local Government Ordinance (PLGO) 2001 encompasses all the requisite areas and requires implementation.

• There is a need for a unified, consolidated and an independent transportation

institution for the entire city under the respective City Government with an efficient capacity to deliver.

• There is a requirement to consolidate the roads operation, maintenance and

management system under the CDGs. • The maintenance of the transport infrastructure is a major issue. The

organization which controls the assets, should also maintain them. • The provincial departments need to have a more pro-active role as a

regulator and a facilitator to the City Governments. • There is a need of professionals at the policy level with the right person for

the right job and clear identification of the responsibility of the assignment. • There is an exigency to develop a professional culture in the transport sector

and in the government institutions by transparent hiring process, better career enhancement and by provision of market based salaries.

• Also judicious out-sourcing of activities, where feasible, can enhance

efficiencies. • The institutional alignment is very important. Need to change the mindset of

the professionals. There is a need for the professional management, award of scholarships for higher studies and continuous training of the staff in the transport sector.

• This shall help to develop an effective transportation system. • There are institutional and the bureaucratic delays in the system, adversely

affecting the transport sector; which needs to be appropriately addressed. • The Highways Department of the C&W has an inadequate capacity to

handle the urban transportation in terms of planning, traffic engineering and execution. This task should be handled by the respective unified institutions of the City Government.

• There is a requirement of an administrative, regulatory and financial

capacity building of the TMAs.


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6.5 CONCLUSION 6.5.1 The Consultants have outlined in the preceding sections, the various selected

relevant functions of the city governments and the provincial departments under the PLGO 2001 and the Punjab Government: Rules of Business.

6.5.2 PLGO 2001. This is evident from these sections that basically all the municipal

functions, specially in the transport policy context, activities such as related to roads, public transport, enforcement, fiscal resources, environmental and drainage control and all other pertinent matters along with the relevant planning and regulatory measures are adequately addressed in the PLGO 2001.

6.5.3 There is an exigency of an effective enforcement of the PLGO 2001 to develop a

vibrant and an efficient transport system for the five big cities of Punjab. 6.5.4 Punjab Government: Rules of Business. The role of the concerned provincial

departments in the post devolution plan is to devise policies, strategies and perform an effective regulatory role. In the context of the provincial government departments, the roles are well defined in the Punjab Government Rules of Business and mostly the relevant institutions are in place to cover various aspects of the policy formulation, planning and development to make a decent transport system for our cities.

6.6 COMPARABLE INTERNATIONAL EXPERIENCE 6.6.1 In the context of the urban transport institutional assessment, the relevant

international experiences and best practices in formulation of the sustainable urban transport institutions were considered of large comparable developing countries like India and Indonesia.

6.6.2 Indian Transport Policy. In the Indian Transport Policy they have in terms of the

institutional arrangements generally recommended, such as to develop the National Urban Renewal Commission (NURM) and setting up of Unified Metropolitan Transport Authorities (UNMTAs) in all million plus cities. Also emphasized on the skill development of the public officials and other public functionaries. The Indian Transport Policy also endorses that the urban transport and the planning bodies need to have an in-house transport planner. Also there is a requirement for representation from all major operators and stakeholders in the transport sector.

6.6.3 Indonesian Transport Policy. In the Indonesian Transport Policy in terms of the institutional mechanism, they have advised, such as to develop the National Agency for Planning and Development, Public Transport Boards to control the franchising of routes and licensing of all public transport operators. They have


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also recommended to make; such as, the Government Agency for Land Development (for micro planning), Directorate General for Road Development, Government Agency for Land-use Development (for revenue collection) and Local Government Agency for Development ( for land-use and transport planning). They have also proposed amendments in their legislation to make land-ownerships and rights transparent.

6.6.4 Other International Experiences. Also the transport strategies of London and

Singapore with a mature and developed system were also overviewed, which concentrate on democratically accountable governments; with stringent regulatory and enforcement mechanisms in the transportation sector. In these developed places through institutional mechanisms they have emphasized an integration of the transportation system with the public transport, rail and mass transit system. Also devised regulatory mechanisms for congestion pricing, accessibility and keeping the environment under the ambient levels.

6.7 RECOMMENDATIONS 6.7.1 The consultants based on the urban transport policy and an institutional

assessment and analysis as discussed in depth in the preceding sections have made the following summary recommendations for the directions and processes for the institutional reforms in the transport sector, such as: • There is a requirement for the institutional development, strengthening and

consolidation of specifically the transportation sector related activities for the Punjab Province and its five big cities.

• Develop practical policies and adopt proper planning measures. Prepare

integrated Master Plans and the Transport Plans for the towns and cities of Punjab.

• Improve planning rules and regulations and develop standardized and uniform

procedures and codes in the transport sector in the Punjab Province. This shall help to develop a better transportation infrastructure in the five big cities of Punjab.

• Enhance transportation related technical capacity. • Pragmatic steps are needed to ease congestion. • Immediate measures are required to improve the public transport system. • Effectively improve the road safety procedures. • There is a demand to greatly enhance the traffic rules enforcement capability.


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• Improve the transportation related financial capabilities of the city

government. • Introduce environmental friendly transportation system. • Improve level of service of the logistics and the freight movement facilities. • There is a requirement to have an axle load control to regulate the detrimental

effect caused by the overloaded trucks plying on the roads. • Encourage a pragmatic and a well planned; an integrated multi-modal system

for the five big cities of the Punjab Province. • Develop regional transport and promote transit trade.

• Establish agencies to act as coordinator of these cities, identify the urban

transport problem, and consider the need of resource to solve it.

• The need of an int’l liaison group to find the opportunities for any international cooperation including technical and and funding for urban transport development

• The need to establish a committee to handle these cross-cutting issues and

undertaken adjustment in the implementation of planning.

• At the provincial level, the planning and development has been actively involved in shaping road and transport investments in Lahore. Most road construction and rehabilitation is financed through the provincial the provincial Annual Development Program and assigned for executing to a variety of agencies. At the local level, there are two types of agencies that have a cross-cutting function with regard to traffic and public space management.

• Typical institution problems: urban transport management can suffer from a

variety of potential weakness, such as lack of technical capacity, rent seeking, poor spatial and jurisdictional coordination, poor functional coordination, and poor operational coordination.

• Experience throughout the developing world shows, few cities have any

strategic land- use and transport planning agency. There is often no traffic management institution or unit worthy of the name, and often not even an adequately trained transport or traffic engineer within the municipal agencies – Lahore being a notable exception.


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• Transportation policy implemented by the institutions is required to response urban level probles and time by time develop the condition of transport network and applied technology. The process of implementing effective transportation related institution and planning.

• The need of urban institutional and decision making environment to present a

challenge to analyze, discuss, reach consensus, and implement transportation policies. This challenge is sufficiently large if only one scheme being implemented – a road plan, transit proposal, or event a pricing scheme. However, there is widespread experiences that policies and strategies need to be implemented as a package. Individual elements are not sufficient to achieve desired results. Program and policies need to be mutually reinforcing, integrated packages to have the greatest effect. On one hand, such packages complicate the planning and decision-making process.

• At the same time, national policies and programs are being advanced in other

functional areas, including the environment, finance, housing, agriculture, commerce, communications, and energy. Often there is a lack of consistency in policies and programs between these functional areas and transportation. The myriad of agencies pursuing policies in their areas of responsibility complicates achieving consistency across functional areas.

• Urban governments set their own transportation goals and priorities, and use

similar means of funding and regulation to advance them. Urban governments also face the problem of coordinating their policies across functional areas.

• At the local level there are multiple governmental bodies as well as regional

organizations. Local governments compete for resources and an increased tax base while working with other agencies to agree on major projects to implement. They must respond on the requirement of the districts for funding of transportation projects as well as any regulations promulgated by these higher levels of government.

• As economic globalization becomes more dominant fixture of decision

making, coordination with other urban governments and international organizations is increasingly necessary. Establishing agreements at the international level provides a consistent policy framework for urban and national governments. Policies and programs by other national governments increasingly affect not only the national policies arena but also urban and district transportation decisions.

• In many countries, suburbanization of population growth has lead to a

situation where the major traffic flows are between traditional local government jurisdictions rather than within them. The city region, rather than the municipality, becomes the effective unit of major transport interaction. Fortunately the dispersal into central and many suburban municipalities is not


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a major issue in Lahore where the city district is so large that the management of trunk infrastructure and service of the entire metropolitan area can in principle be handled by the City District Government. There are, however, large zones within the urbanized area that are under the jurisdictional control of the military.

• Local district and municipal functions may, even in unitary cities, not be well

aligned and defined on specific aspects of a road management. Especially in very large cities, some municipal functions are devolved to local districts, as they may be better understood at the neighborhood than the city level. In Lahore, some functions such as the maintenance of local roads and the management of urban space are devolved to ninetown municipal administrations, and 150 union administrations, inevitably there are overlapping responsibilities in such as areas as parking and encroachment control, which can have a major effect on traffic flow.

• The urban planning process provides a framework and rational process for

setting goals for the areas, identifying problems, analyzing options for addressing these problems, and coming to agreement on strategies and policies to implement. It also provides a basis for the federal government to make urban transportation funding decisions.

• These coordination issues can be difficult to address successfully, because

transport is only one of several services within differing degrees of spatial in reaction and hence different “natural spatial boundaries”. Even within transport, some functions, such as parking enforcement, may be appropriately administered at a very local level, while others, such as infrastructure.

• Overlapping levels of authority within a hierarchical system are often the

source of jurisdictional conflicts. The responsibilities for managing urban public transport may have been transferred to the municipalities, while the central or provincial governments retain some powers to determine fare levels. Usually, inter-municipal buses the responsibility of the provincial government, while inter-municipal buses the responsibility of the municipalities. The same is the case of Lahore where inter-municipal bus services (which reportedly carry many local passengers within the Lahore urban area) are outside the control of the city district. Whereas the licensing of intra urban bus and wagon services is done by the regional transport authority reporting to the city mayor; interestingly, the licensing of intra-urban bus services playing within the city are awarded by the provincial transport department.

• If the professionalism of the relevant institutions cannot be improved, it is

unlikely that the substantive problems will be solved. Action is therefore required on two levels.

First, authorities must recognize what kind of technical organization is necessary to address urban transport issues – which is clearly the case in


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Lahore where the Punjab Government is sponsoring this and some other studies to modernize urban transport institutions.

Second, and probably more difficult, the agencies must have adequate human and physical resources to perform their functions.

• The need to strengthen institution in the field of:

assure the coordinated, effective administration of the city government’s transportation programs

facilitate the development and improvement of coordinated transportation service, to be provided by private enterprise to the maximum extent feasible.

Encourage the cooperation of cities, and district governments, carriers, labor, and other interested parties toward the achievement of urban transportation objective.

Stimulate technological advances in transportation Provide general leadership in the identification of transportation

problems. Develop and recommend to the national level for approval urban level

transportation policies and programs to accomplish these objectives with full and appropriate consideration of the needs of public users, carriers, industry, labor, and national defense.


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7. DEVELOPMENT OF AN INSTITUTIONAL

REALIGNMENT OR REFORM PLAN (IRP) 7.1 RESPONSIBILITIES AND CONSTRAINTS OF EXISTING AGENCIES AND

PROPOSED AGENCY 7.1.1 The transport sector at the macro level is currently managed by the four federal

ministries, four provincial governments and six autonomous authorities. The absence of a single ministry, “Ministry of Transportation” that encompasses all sub-sectors has created negative effects on the improvement and modernization of the key transport systems in Pakistan. These concerns in the past through the various studies and reports have already been highlighted and most recently, such as the Transport Sector Development Initiative (TSDI) by the World Bank in 1999, the Pakistan Transport Plan Study, prepared by JICA in 2006 and the Transport Policy Support Study, prepared by the ADB in 2007 have discussed on the issue of the fragmentation of the transport sector; causing inefficiencies in the related ministries and departments and need of consolidation to drastically improve the system.

7.1.2 At the provincial level, the Punjab Government is facing capacity constraints,

inefficiencies in the service delivery, causing undue pressure and burden on the administrative setup of the province. In the transport sector at the provincial level, the Transport Department, GoPunjab in general is exclusively dealing with the public transport aspects of the province. The Highways Department of the C&W Department, GoPunjab administers and manages the provincial highways.

7.1.3 The Transport Department is traditionally not one of the major departments of the province in terms of the size and has had a small capacity to manage the growing public transport demand. The masses specially, in the five big cities of Punjab are having low to poor level of the public transport service; apart from a very little or no supporting infrastructure in this context.

7.1.4 The performance of the Highways Department in particular and the C&W in general lacks the requisite minimum technical and the capacity levels. There are various allied complex reasons for the inefficiencies in the system, such as of low level of professional capacity, inadequate funding and obsolete professional practices.

7.1.5 The highways and roads of the province in terms of the accessibility and the

regional connectivity and also in the context of the engineering standards and the service quality do not meet the requisite standards. Also lack of routine, periodic maintenance and the rehabilitation of the highways infrastructure and the logistics


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have a multiplier negative effect on the already over-burdened transportation logistics.

7.1.6 In consideration of the rapid economic growth, population pressures, inefficiencies in the system have put severe strain on the already dilapidated infrastructure, specially in the transport sector. As the corresponding growth in the planning, design and development has not occurred; which has compounded into an ever increasing gap between the maintenance and supply side of the services and facilities; compared to the rapidly growing requirements in the multi-modal transport sector.

7.1.7 The province needs to have a multi-modal vision, so that the Punjab independently can administer and manage the land, rail, air and water sub-sectors of the transportation. As Punjab needs to take the lead by developing the capacity to deal with a pragmatic and a modern approach to develop a diversified multi-modal system to fully exploit the potential of the various modes of transport. This shall enable to foster the economic growth of the masses of province and Pakistan. There is a need to consolidate the Transport sub-sectors, including road, rail, mass transit, public transport, airports and the inland navigation systems into a consolidated and a unified “Transport Department.”

7.1.8 The consultant proposed that the existing Transport Department and the Highways Department of the C&W Department of the Punjab Government shall merge into the newly created “Transport Department”, which shall administer and manage all the requisite multi-modal transportation activities of road, rail, air and water of the province. This Transport Department at the provincial level shall over-see all the transport sub-sector related policies, plans and elements. The Transport Department will also on the behalf of the provincial government; regulate and administer their plans and policies at the district level. The Transport Department at the provincial stage shall be effectively coordinating with the Departments namely; the P&D, HUD & PHE, LG&RD, Environmental Protection and Excise and Taxation. The Transport Department will also coordinate with the Cantonment Boards and the DHAs where applicable. For the prospective consolidated provincial multi-modal Transport Department’s tentative linkages, see Figure 7.1.

7.2 ESTABLISHING OF THE METROPOLITAN TRANSPORT AUTHORITIES

(MTAS) 7.2.1 Establishment Requirements of MTAs 7.2.1.1 The fully functional and autonomous Metropolitan Transport Authorities (MTAs)

under the respective City District Governments (CDGs) shall be created in all the five big cities of the Punjab province with all the consolidated functions of the


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transport sub-sectors under their umbrella, such as roads, rail, mass-transit, public transport, air and water.

7.2.1.2 At present, for short term, the concentration should be specifically on the road and the public transport infrastructure, including the mass transit. Also in the medium to long term time frame, the MTAs should develop the institutional and the professional capabilities to manage all other sub-sectors, including rail, air and in-land navigation.

7.2.1.3 As the cities of the developing countries through the decentralized approach are effectively managing their multi-modal transport infrastructure. We shall have to fully empower our CDGs in order to meet the aspiration of the masses in the badly neglected transport infrastructure of the five big cities at the grass root levels. Also there is an exigency to develop cutting edge and fast track mega projects through the public-private partnerships to bring our cities at the level of the other growing economies of the region. The MTAs shall be financially, administratively and technically independent with an efficient capacity to deliver.

7.2.2 The Formation of Boards for the MTAs 7.2.2.1 The MTAs in each of the five big cities shall be overseen by their respective

Boards with an appropriate representation of the provincial government through the Departments, such as P&D, Transport, Traffic Police, LG&RD, HUD & PHE, Environmental Protection and Excise and Taxation. Also in the respective MTAs Boards, there will be an appropriate representation of the relevant Cantonment Boards and the DHAs, where applicable.

7.2.2.2 In their respective MTA Boards, all the TMAs, utility and services organizations shall also have an adequate representation. In the MTA Boards, there will be community participation from the masses and persons of repute from the civil society. Also there shall be a representation of the concerned professional bodies and or any other relevant stakeholder deemed fit will be member of the Board. This Board shall also have representation from the relevant Departments of the respective CDGs. For the tentative organizational set up of the MTA Board, see Figure 7.2.

7.3 IMPLEMENTATION ACTION PLAN 7.3.1 Prospective Time-table and Milestone for the Institutional Re-alignment Plan

The Consultants based on the stake-holders feed back and an in-depth analysis as discussed in the previous sections have proposed the time-line; which shall be fine-tuned and developed after an extensive governance and the delivery mechanism procedures put in place by the provincial and the city district governments of the five big cities. For the tentative institutional realignment time-line and milestones, see Table 7.1.


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Table 7.1 Time Table for the Action Plan

Institutional Measures Time-line Create consolidated Transport Department (Multi-modal), GoPunjab, after merger of the existing Transport and Highways Departments of the Punjab Government.

Formation of the new Transport Department within one year of the formalization of the Punjab Transport Policy.

Create MTAs in all the five big cities of Punjab with the requisite organizational setups as discussed in the preceding sections.

Formation of the MTAs within six months after the creation of the Transport Department.

7.3.2 Organizational Setup of the MTAs 7.3.2.1 In the short term phase the MTA shall be having the Roads Department, Public

Transport and Mass Transit Department, Finance and Economics Department, Administration and Regulations Department and combined Multi-modal Department for all other modes. This multi-modal department in the short term phase shall be dealing collectively with the rail, air and in-land navigation and will gradually develop its capacity.

7.3.2.2 The Roads and the Public Transport and the Mass Transit Departments shall have their independent planning and design, operations and maintenance sections. The DRTAs will also be part of the MTAs Public Transport and the Mass Transit Department. For the tentative organizational set up, see Figure 7.2. In the proceeding sections, the consultants have highlighted the proposed tentative organizational structure of the departments under the MTA.

• Roads Department

The prospective Roads Department shall have the following proposed sections:

Planning and Design Section. In the Roads Department, the planning and design sections shall have a fully functional transportation planning, traffic engineering and design disciplines.

Operations Section. Operations Section shall look after the new construction and rehabilitation of the roads related activities. This section through the Development Control Department of the CDG shall effectively manage the ROWs of the transport corridors to ensure smooth flow of traffic and strictly remove the encroachments. Also this section shall have an independent cells dealing with the traffic signals, street lighting and the drainage system.


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Maintenance Section. The periodic and routine maintenance of the road infrastructure will be looked after by an independent Maintenance Section. The maintenance of green belts along the transportation corridors will also be maintained by this section. For the tentative organizational set up, see Figure 7.2.

• Public Transport and Mass Transit Department

The Public Transport and Mass Transit Department shall be dealing matters pertaining to such as, the public transport policy and planning, the Motor Vehicles Act, 1939, MVA 1965, route permits, fare/freights; matters relating to the traffic speed, loading, parking and halting places of the public transport. This department shall also be managing the bus stands, certification of the public vehicles fitness, administration of the motor vehicles examiners; payment of compensation in case of the accidents in which the public transport is involved and other allied matters. The Roads Department shall be working in close coordination with the Public Transport and the Mass Transit Department. The prospective Public Transport and the Mass Transit Department will have the following proposed sections:

Planning Section. This department shall be having the sections, such as; Planning Section working out the network, routes and fares and rider-ship projections and planning.

Operations Section. The Operations Section will be dealing with enforcement of various procedures and regulations, such as Motor Vehicles Act, 1939, MVA 1965 and all other matters related to the operation of the public transport as briefly highlighted in the preceding sections. Also the Operations Section shall be managing the Bus Stands and the halting points.

Maintenance Section. There will also be a Maintenance Section, which shall manage the public transport infrastructure. For the tentative organizational set up, see Figure 7.2.

• Finance and Economics Department

The resource generation, budgetary, fiscal, economic areas and the PPP and the BOT projects shall be looked after by the Finance and Economics Department of the MTA, encompassing the Roads Department, Public Transport and Mass Transit Department and Multi-modal Department. For the tentative organizational set up, see Figure 7.2.

• Administration and Regulations Department

The administrative, legal and the regulatory issues of the transport related matters will be dealt by the Administration and Regulations Department of the MTA, covering the Roads Department, Public Transport and Mass Transit Department and Multi-modal Department. The respective MTAs, specially


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their Roads Department and the Public Transport and Mass Transit Department shall have a pro-active interaction with the Urban Planning and the Development Control Departments of their CDGs to plan, develop, operate and maintain an effective transportation system of the five big cities of Punjab. For the tentative organizational set up, see Figure 7.2.

7.3.3 Budgeting of the MTA 7.3.3.1 The MTA shall formulate its own budget under the guidance provided by its

Board and will function with-in the approved standard operating procedures. The management of the MTA shall be responsible for the monitoring of the budget and will operate within the approved authority level.

7.3.4 Staffing of the MTA

7.3.4.1 The Nazim shall be the Chairman/Chairperson of the respective MTA and the

MTA Board. There will be a fully functional Chief Executive of the MTA with a vast professional and management background in the transportation sector. The Roads Department, Public Transport and the Mass Transit Department, Finance and Economics Department, Administration and Regulations Department and combined Multi-modal Department each will be headed separately by their independent and full time Chiefs/General Managers with an extensive experience in the requisite fields. Typically under, such as the Roads Department and Public Transport and Mass Transit Department, their respective Planning/Design, Operations and Maintenance Sections separately; will be each headed by their independent professional Directors. Furthermore, each specialty under various sections shall be supervised by the requisite technical Deputy Director with concerned professional expertise. The staffing requirements will be further fine-tuned as per the varying needs; once the MTAs are in place and fully operational. For the tentative staffing set up, see Figure 7.3.

7.3.5 Training

7.3.5.1 The newly created consolidated Transport Department, GoPunjab and the MTAs

in all the five big cities shall have an in-house training and orientation programs and extensive training jointly where feasible and independently through the relevant professional institutions, educational centers and organizations.

7.3.5.2 The training of the various tiers shall be structured and focused, such as in transportation planning, traffic engineering, public transportation, urban planning, including zoning, land-use planning, development control, drainage, environment and horticulture. Also areas, such as management, legal, enforcement, finance and economics and the demographic aspects shall be covered in the training programs.


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7.3.5.3 The training of the concerned professionals in the Transport Department and the

MTAs shall be geared to train and prepare the professionals with the requisite hands-on and the cutting edge skills in their respective disciplines as per the requirements of the departments in which they will be deployed.

7.4 DEVELOP POLICIES AND PLANNING STRATEGIES 7.4.1 There is a necessity for a continuous process for the needs identification and

assessment. The Government should develop a transparent policy, encompassing all the relevant areas. The transport sector needs concerted attention and requires a wholesome and not a piecemeal approach.

7.4.2 There should be a mandatory requirement for the preparation and approval of the

Master Plans for all the towns and cities with a regular and a periodic update. The components of the Master Plan also need to be clearly identified. In this context, there is a requirement to make short, medium and long range, integrated Master Plans and the Transport Plans for the towns and cities of Punjab.

7.4.3 There is no formal direction and guideline of the unified policies, plans and

standards in terms of urban planning and the transport sector. The city districts should look beyond their administrative boundaries in terms of a region for the planning purposes. The transportation plans should be user friendly and fit the requirements of the masses. There is a requirement to standardize the urban planning policies, plans and procedures with given monitorable performance indicators and Levels of Service (LOS) standards.

7.4.4 The change of land-use and zoning should only be allowed if the concurrent

supporting infrastructure can simultaneously be brought up to the requisite levels. This process needs careful scrutiny in order to have a proper transport infrastructure.

7.4.5 There is a need for an effective urban housing policy interlinked with the

Transport Policy. The multi-modal transportation system of the five big cities of the Punjab province shall effectively and efficiently connect and integrate the road, rail and air-network.


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8. PUBLIC TRANSPORT REGULATORY ASSESSMENT 8.1 TRANSPORT REGULATORY AND EXISTING FRAMEWORK 8.1.1 Punjab Motor Vehicle Act, 1965 8.1.1.1 When more people are dying today in road accidents than on account of any

illness, there is a greater responsibility to address this issue in larger detail and learn from contemporary efforts prevalent in the region. The principles relating to award of compensation in motor accident cases and the provisions relating to insurance in Pakistan are extremely vague, uncertain and complicated. The relevant Fatal Accidents Act 1855 is antiquated and vague since it caters for all deaths caused because of wrongful act, neglect or default and remotely refers that often times the offender may be made answerable for injuries.

8.1.1.2 Realizing the difficulty of the legal representatives of persons killed in motor

vehicle accidents and of the injured persons is such accidents in obtaining compensation within the shortest possible time without going through the tortuous course of regular civil suit, Indian Parliament by Act 100 of 1956 introduced numerous new provisions (sections 165 to 175 to Motor Vehicle Act). There is an urgent commensurate need in Pakistan, to introduce new concepts within the Motor Vehicle Ordinance 1965, rather to leave out to more than 150 years old law (Fatal Accidents Act 1855). The National Highway safety Ordinance (NHSO) 2000, has provided for ‘No Fault Accident Compensation” by a registered insurance Company but rules have not been framed yet to operationalize the same. There has to be structured formula where parties agree once for all to pay and receive as per the formula and need not prove negligence in case of compensation for no fault compensation.

8.2 IDENTIFICATION OF THE KEY ISSUES IN THE CURRENT REGULATIONS

8.2.1 We need to pay adequate compensation ‘for no fault liability’, which presently is

intended at Rs. 20,000/- for a parallel Rs 50,000/- for India , there is a need to establish the institution of Claims Tribunals and compensation in cases of hit and run motor accidents. In India, for instance, Central government has established Fund to be known as Solatium Fund. A determined sum is therefore paid for every death and grievous injury right away.

8.2.2 On the external side, the road transport market lacks certain basic requirements for competing in the international market .One of the most striking examples of key legislation in border crossing concerns the subject of weights and dimensions.


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Section 76 of the Motor Vehicle Ordinance, 1965 authorizes the government to prescribe the conditions for the issue of permits to heavy transport vehicles. The laden and unladen weight as well as axle weight have to conform to maximum weight specified in the certificate of registration but the exceeding weight carrier under detailed procedural Rule 219 of Motor Vehicle Rules 1969 is only asked to reduce the weight at the close by storage point, a practice that is rarely exercised thus rutting in the roads is noticeable every where. However, such a permissive law would not be acceptable in cross border transportation where weights and dimensions may of necessity be aligned with neighboring countries. Motor Vehicles Ordinance, 1965, is a consolidating and comprehensive law. Over the years various amendments were introduced in the principle statute to cater for changing situations for instance the definition of motor vehicle and the owner thereof have been expanded to include diverse nature of motor vehicles and hire-purchase concepts. Despite exhaustive nature of the ordinance and the matters contained therein the issue of effective enforcement is lacking resulting into deterioration of traffic in particular and motor vehicle affairs in general.

8.2.3 The criterion for the grant of various licenses like driving license, stage carriage licenses, private cum public carrier licenses are contained in the ordinance but not followed in letter and spirit. The discretion available to the traffic police officers and cumbersome ticketing system in case of traffic rules violations has contributed towards corrupt practices and deterioration of the traffic affairs. The mechanism for evaluating the vehicles, their condition and fitness are indeed available but due to lack of proper enforceability environmental pollution levels are appreciating every day, as numerous sub-standard vehicles were plied on roads. The mushroom growth of stage carriage vehicles within the cities has increased traffic problems and incidences of reckless accidents on roads due to lack of pre-licensing, effective evaluation and post licensing checks. One of the effective instruments for enforcement in our opinion is introduction of Motor Vehicle Claims Tribunals, like in neighboring India, providing for focused and expeditious response to violators.

8.3 RECOMMENDATIONS 8.3.1 Motor Vehicles Rules 1969 – any Changes, update required 8.3.1.1 The Motor Vehicle Rules 1969 expand upon the parent law i.e. Motor Vehicle

Ordinance, 1965 and are in conforming pedigree. The Rules in the neighboring countries devolve around ‘Motor Accidents Claims Tribunal’ Rules providing specialized, focused and fast relief. As indicated above, there is a definite need to establish such an institution in Pakistan by taking the advantage of the Indian Model. Similarly , in many countries, national legislation include articles addressing border crossing issues such as passport/visa, international driving, and technical requirements of vehicles, including weights and dimensions, temporary importation of vehicles, Transport of animals, dangerous goods and perishable


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goods. Although Motor Vehicle Rules 1969 are exhaustive, they lack cross border issues. For instance, experience from CIS and Balkan countries clearly demonstrates that regulations on weights and dimensions of road transport vehicles have a distorting effect on transport facilitation when all countries for their own reasons apply different standards and change legislation on this subject regularly without proper informing the road transport sector. We therefore recommended alignment of new regulations on weights and dimensions (axle loads) as much as possible with neighboring countries.

8.3.1.2 One directly related issue to related legislation concerns liability in road transport

for loss, damage and delay of goods. The carriage of goods by road within Pakistan is currently governed by the Carrier’s Act 1865, which is a law that is badly in need of reform. The limitations of liability enshrined in that Act have remained fixed at Rs.100 per item for well over a century. In addition, the Act does not adequately cover the needs of the road transport carrier since it does not lay down any laws that would protect the carrier. Theoretically, the road carrier’s liability for loss of or damage to the goods should be subject to the provisions of the Carriers Act, 1865, but not many in this industry are aware of this fact. The draft law has been modeled on the CMR Convention 1956, an internationally recognized road carriage convention.. Adopting its basic principles will help to upgrade domestic law and regulate the contracts of carriage by road in an efficient and enabling fashion. Gradual inclusion of standards for access to the profession of international road transport operator (professional competence, good repute and financial standing,) which have been introduced to TRACECA countries, can be a good starting point for improving international competitiveness of road transport in Pakistan.

8.3.1.3 Keeping the parity of social and economic conditions, it is recommended that the immediate adhoc compensation to the victims of motor accidents which are usually announced by political personalities in different sums thus leaving out most of other cases which are not reported or not considered news worthy, there is a need to create institutional arrangements for instant payment.

8.3.2 Public Transport Regulations/Administrations 8.3.2.1 Public transport needs to be considered as an industry. it requires identifying the

city travel demand. Demand assessment is quantified in terms of potential public transport passenger trips in the context of overall traffic movements and road capacities and designing services provisions best suited to the traveling needs and potential to attract passengers from private transport in the interest of running most competitive, qualitative, economically viable and sustainable service, at reasonable price to the customers. The whole philosophy of public transport provision, regulation and administration resolves around this concept. To deliver such a service city needs to have proper mechanism and an organisation which can and is competent enough to identify and assess market requirements, design and manage the service provision through regulatory reasonable in line with


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market economy. To make sure quality service at reasonable cost to the consumers, if it needs subsidy that must designed and provided so that access of the urban poor to the city mobility is not denied.

8.4 RECOMMENDED AMENDMENTS 8.4.1 Amendment 45A in Punjab Motor Vehicle Act, 1965 8.4.1.1 Some of the modifications in the latest amendment to Section 45 A, added by

Punjab Amendment Act VI of 2005, dated 27/6/2005, and may further include:-

1) Need for encouraging adoption of higher technology in automotive sector;

2) Standards for transportation of hazardous and explosive materials;

3) Pollution control measures;

4) Greater flow of passenger and freight with least impediments;

5) Increasing the speed of stage carriages 8.4.1.2 Implicit therein is the need, for better regulation of the stage carriages, to provide

for the following provisions in our Motor Vehicle Ordinance 1965: 1) Laying down of standards for the components and parts of the motor

vehicles.

2) Standards for anti pollution control devices

3) Enabling provisions for updating the system of registration marks

4) Maintenance of Provincial Registers for driving licenses and vehicle registration

5) Constitution of Road Safety Councils

8.4.2 Environment and Air Quality Standards 8.4.2.1 Pakistan Environmental Protection Act 1997 recognizes four bench marks as its

National Environmental Quality Standards (NEQS) one of which deals with motor vehicle exhaust. The law is their but its enforcement is clearly amiss. Environment and ecology is on the concurrent legislative list of the constitution but presently the Federal standards are followed by all provinces. There is a need to have a strong relationship between the land-use and the transportation elements.


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The zoning, land-use and the transportation system needs an effective and a coordinated approach through intelligently integrating all the elements of a master plan. Punjab Environmental Tribunal does redress environmental violations with regard to the motor vehicle exhaust.


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9. URBAN TRANSPORT FINANCING ASSESSMENT 9.1 Existing Financing Mechanism 9.1.1 Transport Infrastructure and Services

Major costs on transport infrastructure and services can be classified under following heads:

• Development and maintenance of urban roads • Provision of traffic signals/signs • Parking facilities • Carriageways, footpaths and pedestrian passes • Street lights and • Landscape

9.1.2 Transport Fleet and Related Facilities 9.1.2.1 The transport fleet and related services comprise of the following components:

• Public transport services including buses and other vehicles • Bus Stations • Bus depots • Workshops

9.1.2.2 The overall economic development of the country with GDP ranging between 6-

7% over past five years has enabled the federal and provincial governments to allocate larger funds for the urban transport system. The table below indicates tremendous increase in development budget of the Punjab government since year 2000-01. The development budget of the province during 2000-01 was Rs. 21.22 billion which increased to Rs. 53 billion in year 2005-6. The budget allocation for the year 2006-07 was Rs. 100 billion against which actual spending amounted to Rs. 137 billion. The allocation for the year 2007-08 is Rs. 150 billion. Table 9.1 Financing the Annual Development Program 2007-08 (Rs. in Million)

ACCOUNTS BE 2007-08 RE 2006-07 BE 2006-07 Net Revenue Account-Surplus/Deficit 112,684.544 75,171.202 82,710.555 Net Capital Account-I Surplus/Deficit 14,598.118 9,888.051 15,329.657 Net Public Account 14,773.755 43,177.300 (6,916.239) Total deficit (-) / surplus (+) 142,056.417 128,236.553 91,123.973 Federal Grants (Development) 45.000 45.000 45.000 Foreign Project Assistance 7,898.583 8,831.027 8,831.027 Total ADP Resources 150,000.000 137,112.580 100,000.000


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-20,00040,00060,00080,000100,000120,000140,000160,000

Rs. i

n M

illio

n

Budgeted Rev ised

Figure 9.1 Budget Overview

9.1.2.3 The substantial allocations under annual development programmes are expected

to grow over the coming decade at least to the extent of annual GDP growth. The provincial budget for the current year 2007-08 is summarized hereunder:

Table 9.2 General Revenue Receipts 2007-08 (Rs. in Million)

General revenue receipts BE 2007-08 RE 2006-07 BE 2006-07 a Federal Divisible Pool Taxes 226,934.715 184,679.000 180,240.820

Tax on Income 88,911.441 57,286.700 57,685.679 Land Customs 35,665.014 36,670.600 35,526.877 Sales Tax 81,239.476 74,597.900 72,327.012 Federal Excise 19,613.442 14,697.600 14,045.441 Capital Value Tax 1,505.342 1,426.200 655.811 b Straight Transfers 6,141.193 6,584.750 6,466.461 Net Proceeds of Royalty of Crude assigned to Provinces

3,237.295 3,864.013 3,794.600

Net Proceeds on Excise Duty on Natural Gas

assigned to provinces 314.580 309.511 303.951

Net Proceeds on Royalty on Natural Gas 1,229.607 1,401.332 1,376.158

Surcharge on Natural Gas share of proceeds assigned to provinces

1,359.711 1,009.894 991.752

c Federal Grants • 25,934.703 18,347.883 14,702.500 A Total Federal Transfers (a + b + c) 259,010.611 209,611.633 201,409.781 d Provincial Tax Revenue 37,315.597 31,456.211 30,343.117


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Agriculture Income Tax 1,761.740 1,493.000 1,493.000 Property Tax 6,136.000 5,200.000 4,689.000 Land Revenue 4,849.897 4,110.079 4,046.313 Tax on Profession, Trades and 370.000 310.000 400.000 Sales Tax on Services (Provincial) 3,161.970 2,514.600 2,469.428 Provincial Excise 1,216.030 1,030.536 1,026.165 Stamps Duties 10,033.502 8,502.966 8,497.688 Motor Vehicles 6,331.030 5,365.280 4,692.000 Sales of Opium 14.280 12.100 12.100 Other 3,441.148 2,917.650 3,017.423 Entertainment Tax 45.000 36.000 35.000 Cess All Types (Cess on Hotels) 290.800 250.000 275.000 Electricity Duty 2,332.448 1,976.650 1,957.423 Others, All Types-Cotton Fees 772.900 655.000 750.000 e Total Non Tax Revenue 59,845.623 35,183.888 42,335.822 Income from Property and 29,017.483 4,761.577 16,936.577

Receipts from Civil Administration and Other

Functions 4,275.700 4,098.733 3,883.442

Miscellaneous Receipts 17,479.190 15,472.039 13,867.173 Extra Ordinary Receipts 9,073.250 10,851.539 7,648.630

B Total Provincial Own Revenue (d + 97,161.220 66,640.099 72,678.939 Total General Revenue Receipts 356,171.831 276,251.732 274,088.720

9.1.3 Federal Divisible Pool Taxes 9.1.3.1 The current year budget indicates an increase of 30% over last year budget. The

primary reason being an effective resource mobilization at the federal and provincial levels. The greater share of divisible pool of taxes for the provinces under the fifth NFC Award also increased the provincial resources. It is evident from the budget that transfers representing 73% of the revenue receipts are federal transfers.

9.1.3.2 The larger source of revenue for the provincial government is federal divisible

pool taxes. The divisible pool comprises of taxes on income, wealth tax, capital value tax, taxes on sale and purchases, sales tax on services, export duties on cotton, custom duties, federal excise duties and any other tax which may be levied by the federal government. The only exception is the federal duty on gas.

9.1.4 Straight Transfers to Province 9.1.4.1 The federal share of 2.5% GST which was earlier passed on as a straight transfer

to the provinces, now constitute a part of the overall provincial share and is passed on to the local governments in the provinces through the Provincial Finance Commission award. The growing demand for gas and oil is also likely to increase the straight transfers to Punjab representing federal excise duty on natural gas and net proceeds of royalty on crude oil and natural gas.


9-4


9.1.5 Federal Grants 9.1.5.1 Federal government provides development and non-development grants to Punjab.

Such grants have increased over past seven years due to better fiscal position of the federal government and launching of vertical development programmes in economic infrastructure and social sectors of the country. However, federal grants are unpredictable and some of these are provided as matching grants for development activities.

9.1.6 Provincial Own Receipts 9.1.6.1 The tax and non-tax receipts of the provincial government comprise of the

following: Tax Receipts

• Receipts from Direct Taxes (Agricultural Income Tax, Property Tax, Land

Revenue, Professional Tax etc.) • Receipts from Indirect Taxes (Sales Tax on Services, Provincial Excise,

Stamp Duties, Motor Vehicle Tax, Electricity Duty etc.) • Non-Tax Receipts • Income from public-owned property and enterprises • Receipts from civil administration and other functions • Miscellaneous Receipts (excluding Federal Grants) (Other Receipts and

Extraordinary Receipts)

9.1.6.2 The level of provincial receipts has also increased over past five years due to increase in provincial tax receipts. The budget estimates of provincial tax receipts for the year 2007-08 are shown in the table below:

Table 9.3 Provincial Own Receipts 2007-08 (Rs. in Million)

RECEIPTS BE 2007-08 RE 2006-07 BE 2006-07 a) Tax Receipts 37,315.597 31,456.211 30,343.117 Direct Taxes 13,117.637 11,113.079 10,628.313 Indirect Taxes 24,197.960 20,343.132 19,714.804 b) Non-Tax Receipts 59,845.623 35,183.888 42,335.822 i. Income from Property and Enterprises 29,017.483 4,761.577 16,936.577 ii. Receipts from Civil Administration and other Functions

4,275.700 4,098.733 3,883.442

iii. Miscellaneous Receipts 26,552.440 26,323.578 21,515.803 Total Provincial Own Receipts (a + b) 97,161.220 66,640.099 72,678.939

9.1.6.3 The provincial tax receipts indicate that property tax is the largest contributor to

the direct provincial taxes. Under the indirect taxes, motor vehicles contribute the second largest share.


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9.1.6.4 Property Taxes mainly include Urban Immovable Property Tax (UIPT), and Registration Fee collected at the time of registration of a sale deed (transfer of property tax). The UIPT is essentially a devolved tax, but for administrative convenience, it is being collected by the Provincial Government and passed on to the TMAs and WASAs as per the agreed arrangement. The details of provincial tax receipts are shown in the table below: Table 9.4 Provincial Tax Receipts (Rs. in Million)

TAX RECEIPTS BE 2007-08 RE 2006-07 BE 2006-07 Direct Taxes 13,117.637 11,113.079 10,628.313 Agricultural Income Tax 1,761.740 1,493.000 1,493.000 Property Tax 6,136.000 5,200.000 4,689.000 Land Revenue 4,849.897 4,110.079 4,046.313 Tax on Professions, Trades and Callings 370.000 310.000 400.000 Indirect Taxes 20,756.812 17,425.482 16,697.381 Sales Tax on Services (Provincial) 3,161.970 2,514.600 2,469.428 Provincial Excise 1,216.030 1,030.536 1,026.165 Stamps Duties 10,033.502 8,502.966 8,497.688 Motor Vehicles 6,331.030 5,365.280 4,692.000 Sale of Opium 14.280 12.100 12.100 Other Indirect Taxes 3,441.148 2,917.650 3,017.423 Entertainment Tax 45.000 36.000 35.000 Cess All Types (Cess on Hotels) 290.800 250.000 275.000 Electricity 2,332.448 1,976.650 1,957.423 Others, All Types-Cotton Fees 772.900 655.000 750.000

Total Provincial Tax Revenue 37,315.597 31,456.211 30,343.117 9.1.7 Local Government Finance 9.1.7.1 The Punjab Government provided resources to local governments comprising

District Governments, Tehsil/Town Municipal Administrations, and Union Administrations under the interim PFC Award 2002-03 which was replaced by Punjab specification and distribution of provincial resources order 2006. This Award extends over Financial Years 2006-07 to 2008-09, and provides resource allocation to the local governments, which has assumed the role of primary service providers of essential public services. The budget allocations to local governments over past four years were as follows:

Table 9.5 Budget Allocation to Local Governments under the Interim Pfc Award

YEAR DISTRICT GOVERNMENT

TEHSIL MUNICIPAL ADMINISTRATION

UNION ADMINISTRATION

2002-03 48,725.427 6,792.625 2,702.160 2003-04 54,309.330 6,847.120 2,702.160 2004-05 60,533.396 6,914.431 2,702.160 2005-06 71,938.502 7,605.874 2,972.376


9-6


9.1.8 Vertical Distribution of Resources 9.1.8.1 The size of funds to be divided among the provincial and local governments’ net

proceeds of the Provincial Consolidated Fund (PCF) is determined by deducting from the General Revenue Receipts, the expected shortfalls in receipts and adding the capital surplus. This provides the total Provincial Consolidated Fund resource available. From this resource, the transfer payments for the Urban Immovable Property Tax, 2.5% GST, and the expenditure common to the provincial and local governments is deducted.

9.1.8.2 The resultant net proceeds of the PCF are available for vertical distribution among

the provincial and local governments.

• General Revenue Receipts Less Expected Shortfall Plus Capital Surplus

• Total Resource (PCF) Less Transfer Payments for Urban Immovable Property Tax Less 2.5% GST Less expenditure common to the Provincial & Local Governments

• Net Proceeds of PCF Available for Vertical Distribution

9.1.8.3 Net proceeds of the PCF, as calculated above, are divided into two parts. The larger part is the Provincial Retained Amount (PRA) from which the provincial current revenue expenditures of non-devolved functions, the Annual Development Program of the Provincial Government, and other emergent expenses are financed. The Provincial Retained Amount constitutes 58% of the net proceeds of the PCF. The smaller part is the Provincial Allocable Amount (PAA), which constitutes 42% of the net PCF, and through which funds are distributed to the local governments. This ratio between the Provincial Retained and Allocable Amounts shall operate throughout the currency of the PFC Award, 2006. The share of Cantonment Boards, as required under Distribution of Revenues and Grants in Aid (Amendment Order No 1 of 2006), is deducted from 2,5% GST and the remaining amount is added back to the PAA. This feature ensures that the local governments receive 100% of the 2.5% GST.

9.1.8.4 During FY 2006-07, the formula-based transfer to local governments was Rs. 108

billion. However, upon adding the Special Grants to district governments, the UIPT share, and the resources transferred to the Cantonment Boards, the total resource transferred to the local governments under the PFC Award during FY 2006-07 comes to Rs. 112.5 billion (57% of the net PCF). Out of this amount, Rs. 92 billion were transferred to the District Governments, Rs. 16 billion were transferred to the TMAs (including the UIPT share), and Rs. 4 billion were transferred to the Union Administrations. Share of the Cantonment Boards was Rs. 744.5 million.


9-7


9.1.9 Spending on Construction and Maintenance of Roads 9.1.9.1 Expenditure on road maintenance after increasing sharply in 1993 to Rs. 609

million continued to increase and after reaching its highest in 2001 to over Rs. 1 billion started to decline sharply and during the years of decrease expenditure on road construction increased by doubling each year as compared to the previous period.

9.1.9.2 1990’s and starting years of next decade shows emphasis of the .provincial

government towards road maintenance rather than construction, whereas, 2002 and onwards it is obvious that the provincial government is inclined towards extending the road infrastructure. Table 9.6 Construction and Maintenance of Roads Cost Rs in million

Sr. No. Year Construction Maintenance Total

1 1981 419 69 488 2 1982 646 120 766 3 1983 850 160 1010 4 1984 1101 187 1288 5 1985 915 216 1131 6 1986 807 231 1038 7 1987 975 288 1263 8 1988 1239 254 1493 9 1989 1514 294 1808

10 1990 1912 307 2219 11 1991 1626 296 1922 12 1992 1588 367 1955 13 1993 1898 609 2507 14 1994 2569 704 3273 15 1995 2298 792 3090 16 1996 1900 817 2717 17 1997 1430 730 2160 18 1998 1420 915 2335 19 1999 1761 968 2729 20 2000 1535 946 2481 21 2001 1494 1024 2518 22 2002 719 568 1287 23 2003 1394 540 1934 24 2004 3514 462 3976 25 2005 6871 273 7144

Source: Punjab Development Statistics 9.1.9.3 Total road length of Punjab increased from 11,768 km in 1981 to 71,799 km in

2005 as indicated by the expenditure for road construction, extension of 26,972


9-8


km has been made in road length for the province in years 2003-05, whereas, addition of 33,059 km were made in years 1981-2002. Table 9.7 Road Lengths (Km’s) by Types in Punjab 1985-2002

Sr. No. Year High Type Low Type Total

1 1985 17560 118 17678 2 1986 18669 138 18807 3 1987 20408 137 20545 4 1988 22770 127 22897 5 1989 24793 172 24965 6 1990 27566 304 27870 7 1991 30030 290 30320 8 1992 31857 309 32166 9 1993 33523 305 33828

10 1994 34392 333 34725 11 1995 35483 333 35816 12 1996 37318 336 37654 13 1997 38241 362 38603 14 1998 39327 363 39690 15 1999 40640 315 40955 16 2000 41992 315 42307 17 2001 43683 315 43998 18 2002 44509 318 44827 19 2003 60113 318 60431 20 2004 65134 325 65459 21 2005 71474 325 71799

Source: Punjab Development Statistics

Figure 9.2 Increase in Road Length/Year in Punjab

Table 9.8 Punjab Road Length Data Analysis (1980-2005) Max. Min.

Year No. year No. year

Mean Growth

26 2401.24 2003 391 1981 2401.24 7.50%

Increase in Length/Year in Punjab (1980-2005)

0 10000 20000 30000 40000 50000

60000 70000

80000

Year


9-9


Source: Punjab Development Statistics 9.1.9.4 The table lists the growth rate for each major type of traffic. The overall modal

growth rate from 1980-2005 remain 12%. Growth rate for motorcycles / scooters remained the highest at 12.58% and those of motor cars, jeeps and station wagons, and delivery vans also remained high at around 11%.

Table 9.9 Modal Growth Rate in Punjab (1980-2005)

Sr. No. Type of Traffic Growth Rate 1 Motor cars, jeeps and station wagons 10.71% 2 Motor cycles/ scooter 12.58% 3 Trucks 4.73% 4 Delivery vans 11.40% 5 Buses 6.63% 6 Taxies 6.43% 7 Rickshaws 8.96% 8 Others 19.71% Overall Growth Rate 12.07%

Source: Punjab Development Statistics 9.1.10 Urban Transport Financing for Five Cities 9.1.10.1 The consultant’s review of the budgetary allocation for local governments and

the vital data pertaining to urban transport is discussed hereunder. The data on provincial level is also analyzed and summarized hereunder.

9.1.11 City Government Budget for Lahore 9.1.11.1 The current year budget for the City Government, Lahore is shown in the chart.

The budget indicates that the major source of income is the PFC ward which amount to Rs. 6.3 billion. Compared to the requirements of the City, the budget is very limited as the requirements of the city are also being met directly by provincial and federal Government grants.


9-10


Table 9.10 Lahore Budget Rs. in Million Income Opening Balance 722.825 P.F.C Award 6,301.566 15% Adhoc Increase - Own Receipts 603.500 Grant in Lieu of Octroi 1,179.385 Supp. Non-Development 17.200 Supp. Development 382.021 L.R.R.P - Grant in aid - Total 9,206.497 Expenditure Non-Development 6,751.984 Fiscal Transfers - Development 2,344.347 Total 9,096.331 Surplus / Deficit 110.166

9.1.11.2 The growth in registered vehicles over past 26 years has been recorded at 12.2%

per annum. This growth desires compatible investment on Road infrastructure to cater the growth.

Table 9.11 Registered Vehicles Data Analysis (1980-2005)

Max. Min. Years

No. year No. year Overall Growth Rate

26 274,222 2003 6,604 1989 12.21%

Table 9.12: Modal Growth Rate in Lahore (1980-2005)

Sr. No. Type of Traffic Growth Rate

1 Motor cars, jeeps & station wagons 13.38%

2 Motor cycles/ scooter 12.60% 3 Trucks 6.68% 4 Delivery vans 16.20% 5 Buses 9.69% 6 Taxies 11.93% 7 Rickshaws 8.41% 8 Others 7.84% Overall Growth Rate 12.21%


9-11



9.1.11.3 Modal growth rate for period from 1980 to 2005 is slightly higher than that of Punjab as a whole. Growth of delivery vans has been fastest in terms of percentage at above 16%. Growth of motor cars, jeeps and station wagons in Lahore remained the highest in Punjab at around 13.5%. Motor cycles / scooters also grew at almost 13 %. Growth of taxis, buses and rickshaws took place within range of 8-12%.

Table 9.13 Modal Split in Lahore, 2005

S. No. Type of Traffic No. of Vehicles Percentage

1 Motor cars, jeeps & station wagons

394,965 31.52

2 Motor cycles/ scooter 702,485 56.06

3 Trucks 9,806 0.78 4 Delivery vans 27,878 2.22

5 Buses 23,515 1.88 6 Taxies 11,883 0.95 7 Rickshaws 57,137 4.56 8 Others 25,432 2.03 Total 1,253,101 100


Figure 9.3 Modal Split in Lahore

9.1.11.4 Total number of vehicles in Lahore stood at 1.3 million by the end of year 2005.

Composition by traffic type and their respective share are shown in the table and the chart. Motor cycles / scooters constituted 56% of the total numbers. The second highest share is that of motor cars, jeeps and station wagons at 31.5%.

Modal Split in Lahore, 2005

32%

55%

1%

2%

2%

1%

5%

2%

Motor cars, jeeps &station wagons

Motor cycles/ scooter

Trucks

Delivery vans

Buses

Taxies

Rickshaws

Others


9-12


Table 9.14 Traffic Volumes at Major Intersections

Sr. No. Intersection Vehicles per day

1 FCC-Ferozepur Road 181,908 2 Ferozepur Road-Campus Bridge 157,743 3 Jinnah underpass-Doctors’ Hospital 97,497 4 Doctors’ Hospital –Canal View 93,763 5 Jail road-The mall 168,513 6 The Mall-Allama Iqbal Road 138,062 7 Section north of Allama Iqbal Road 89,918

9.1.11.5 Analysis of major intersections of the Lahore city is shown in the table. FCC-

Ferozepur intersection is the busiest part of the city and the Jail road-The mall intersection has been the second busiest one. The road from Campus bridge to the mall together bears the major traffic load.

9.1.11.6 List of terminals for inter city travel, terminals for city traffic and terminals for

loading and boarding of goods is shows in the table. The Daewoo stand is located in the heart of the city whereas other three terminals for intercity travel are located at the edge of the city. However, all approaches and locations of all these terminals are high traffic and densely populated areas. Terminals for city traffic are also in the congested and highly populated area.

Table 9.15 City Terminals in Lahore

S. No. Inter-city terminals Terminals for city

traffic Freight terminals for loading

and boarding of goods

1 Badami Bagh Bus terminal Lahore Railway Station

Badami Bagh on Ravi Link Road

2 Site close to the Railway Station Bhaati Gate Babu Sabu on Bund Road

3 Daewoo stand on Ferozepur Road

Airport

4 Bund Road Dry port Source: Integrated Master Plan for Lahore-2021

9.1.11.7 Travel demand for each type of traffic is shown in the table. The current

demand is almost 7 million per year which is expected to rise to more than 11 million by the year 2021. The current demand is highest for the public transport constituting 50% of the total demand. However, travel demand for car / taxi / 4WD is expected to get double by 2021 which is highest growth rate than for all other types.


9-13


Table 9.16 Travel Demand Growth of Passenger Trips/Day Year

S. No. Type of Traffic 2005 2021

1 Motorcycle 1,200,000 2,000,000 2 Rickshaw 1,100,000 1,700,000 3 Car/taxi/4WD 1,200,000 2,400,000 4 Public Transport 3,400,000 5,000,000 Total 6,900,000 11,100,000

Source: MVA Asia Limited, 2006

9.1.12 City Government Budget for Faisalabad 9.1.12.1 The current year budget for the City Government, Faisalabad is shown in the

table. The budget indicates that the major sources of income are the Grant in lieu of Octroi which amount to Rs. 681 million and own receipts of the city government which amounts to Rs 450 million. The major portion of expenditure is for non-development activities.

Table 9.17 Faisalabad Budget

Rs. in Million

Income Opening Balance 9,321.179 Government Grants P.F.C Award Grant in Lieu of Octroi 680.581 Own Receipts 450.000 Total 10,451.76 Expenditure Non-Development 4,462.800 Development 1,488.640 Total 5,951.44 Surplus / Deficit 4,500.32

9.1.12.2 The growth in registered vehicles over past 25 years has been recorded at 10%



Max. Min. Years

No. year No. Year

Overall Growth Rate

25 211,659 2001 131,061 1999 10.05%


9-14


Table 9.19 Modal Split in Faisalabad, 2005

S. No. Type of Traffic No. of Vehicles Percentage 1 Motor cars, jeeps & station wagons 50,823 17 2 Motor cycles/ scooter 212,707 69

3 Trucks 3,796 1 4 Delivery vans 1,958 1 5 Buses 5,176 2 7 Rickshaws 9,526 3 8 Others 23,485 8 Total 307,471 100

Source :Punjab Development Statistics

9.1.12.3 Modal growth rate for period from 1980 to 2005 is 10% per annum which is lower than that of Punjab as a whole. Growth of motor cars, jeeps and station wagons, and motor cycles / scooters has been fastest in terms of percentage at almost 11%. Growth of other modes of transportation has been recorded at 13.4% per annum.

Figure 9.4 Modal Split 9.1.12.4 Total number of vehicles in Faisalabad stood at above 300,000 by the end of

year 2005. Composition by traffic type and their respective share are shown in the table and the chart. Motor cycles / scooters constituted 69% of the total numbers. The second highest share is that of motor cars, jeeps and station wagons at 17% and third highest is that of other type of traffic.

9.1.13 City Government Budget for Gujranwala 9.1.13.1 The current year budget for the City Government, Gujranwala is shown in the

table. The budget indicates that the major sources of income are the PFC Award which amount to Rs. 3.5 billion. The major portion of expenditure is for non-development activities.

Modal Split in Faisalabad, 2005

17%

68%

1%

1%

2%

3%

8%

Motor cars, jeeps &station wagons

Motor cycles/scooter

Trucks

Delivery vans

Buses

Rickshaws

Others


9-15


Table 9.20 Gujranwala Budget Rs. in Million Income Opening Balance 927.827 Government Grants P.F.C Award 3431.675 Others 226.901 Own Receipts 136.920 Total 4723.323 Expenditure Non-Development 3,120.080 Development 958.115 Total 4,078.195 Surplus / Deficit 645.128

9.1.13.2 The growth in registered vehicles over past 25 years has been recorded at 14.5%


Table 9.21 Registered Vehicle Data Analysis (1980-2005)

Max. Min. Years

No. year No. year

Overall Growth Rate

25 96,927 2001 67,844 1998 14.57%

9.1.13.3 Modal growth rate for period from 1980 to 2005 is 14.5% per annum which is higher than that of Punjab as a whole and highest among these five cities. Growth of others and delivery vans has been recorded at 29% and 21% respectively. Motor cycles / scooters, and motor cars, jeeps and station wagons remained almost 16% and 11% respectively. Table 9.22 Modal Growth Rate in Gujranwala (1980-2005)

S. No. Type of Traffic Growth Rate 1 Motor cars, jeeps & station wagons 10.80% 2 Motor cycles/ scooter 15.57% 3 Trucks 4.50% 4 Delivery vans 20.64% 5 Buses 5.73% 6 Taxies 1.31% 7 Rickshaws 9.17% 8 Others 29.01% Overall Growth Rate 14.57%



9-16


9.1.13.4 Total number of vehicles in Gujranwala stood at 183,877 by the end of year 2005. Composition by traffic type and their respective share are shown in the table and the chart. Motor cycles / scooters constituted 74.5% of the total numbers. The second highest share is that of other modes of transportation at almost 13% and share of motor cars, jeeps and station wagons is reaching 9%.

Table 9.23 Modal Split in Gujranwala, 2005

S. No. Type of Traffic No. of Vehicles Percentage

1 Motor cars, jeeps & station wagons 16219 8.82

2 Motor cycles/ scooter 136952 74.48

3 Trucks 1023 0.56 4 Delivery vans 2071 1.13 5 Buses 1410 0.77 6 Taxies 212 0.12 7 Rickshaws 2679 1.46 8 Others 23311 12.68 Total 183,877 100

Source: Punjab Development Statistics 9.1.14 City Government Budget for Multan 9.1.14.1 The current year budget for the City Multan is shown in the table. The budget

indicates that the major sources of income are the PFC Award which amount to Rs. 3.3 billion. 54% of the total expenditure is for non-development activities.

Table 9.24 Multan Budget

Rs. in Million Income Opening Balance 397.250 P.F.C Award 3,265.492 Own Receipts 296.000 Supp. Non-Development - Supp. Development 257.605 Re-Imbursements Grant From Provisional Government 80 Enhancement of Annual Grant in Lieu of city District Government 342 Grant on account of increase in Salary 200 Total 4,838.347 Expenditure Non-Development 2,593.343 Development 1,729.703 Grant in aid/Supplementary Grants (Provisional) 488.896 Total 4,811.942 Surplus / Deficit 26.405


9-17


9.1.14.2 The growth in registered vehicles over past 25 years has been recorded at 13% per annum which is second highest among the growth rates of five major cities. This growth desires compatible investment on Road infrastructure to cater the growth.


Max. Min. Years No. year No. year

Overall Growth Rate

25 320,519 2005 12,903 1983 13.14%

9.1.14.3 Modal growth rate for period from 1980 to 2005 is 13.14% per annum. Growth

of others and delivery vans has been recorded at almost 24% and 17% respectively. Motor cycles / scooters, and motor cars, jeeps and station wagons share 13.5% and 12% respectively.

Table 9.26 Modal Growth Rate in Multan (1980-2005)

S. No. Type of Traffic Growth Rate

1 Motor cars, jeeps & station wagons 11.75% 2 Motor cycles/ scooter 13.54% 3 Trucks 5.26% 4 Delivery vans 16.68% 5 Buses 8.38% 7 Rickshaws 9.50% 8 Others 23.56% Overall Growth Rate 13.14%


9.1.14.4 Total number of vehicles in Multan stood at 320,519 by the end of year 2005. Composition by traffic type and their respective share are shown in the table and the chart. Motor cycles / scooters constituted 68% of the total numbers. The second highest share is that of motor cars, jeeps and station wagons at around 14%. Growth rate for others has been recorded at 12% per annum.

Table 9.27 Modal Split in Multan, 2005 S. No. Type of Traffic No. of Vehicles Percentage

1 Motor cars, jeeps & station wagons 45873 14.31 2 Motor cycles/ scooter 217381 67.82

3 Trucks 2360 0.74 4 Delivery vans 3592 1.12 5 Buses 5200 1.62 7 Rickshaws 6747 2.11 8 Others 38618 12.05 Total 320519 100.00



9-18


9.1.15 City Government Budget for Rawalpindi 9.1.15.1 The current year budget for the City Multan is shown in the table. The budget

indicates that the major source of income is the current government grants which amount to Rs. 3 billion. 68% of the total expenditure is for non-development activities. The growth in registered vehicles over past 25 years has been recorded at 6.5% per annum which is lowest among the growth rates of five major cities.

Table 9.28 Rawalpindi Budget.

Rs. in Million

Income Opening Balance Government Grants: Current 3,038.229 Development 310.848 Tie Grants - Own Receipts 147.845 Total 3496.922 Expenditure Non-Development 3,039.729 Development 1,431.656 Total 4,471.385 Surplus / Deficit -974.463

9.1.15.2 Modal growth rate for period from 1980 to 2005 is 6.5% per annum. Growth of

rickshaws has been recorded at 12.6% and that of others has been at 12.3%. Growth of motor cars, jeeps and station wagons, motor cycles / scooters and delivery vans has been observed at less than 7%.


Max. Min. Years

No. year No. year

Overall Growth Rate

25 42,712 2001 653 1987-88 6.53%


9-19


Table 9.30 Modal Growth Rate in Rawalpindi (1980-2005) S. No. Type of Traffic Growth Rate

1 Motor cars, jeeps & station wagons 6.49%

2 Motor cycles/ scooter 6.95% 3 Trucks 4.36% 4 Delivery vans 6.23% 5 Buses 5.44% 6 Taxies 2.99% 7 Rickshaws 12.59% 8 Others 12.32% Overall Growth Rate 6.53%


9.1.15.3 Modal split of the city shows the total number of vehicles in Rawalpindi at

230,010 by the end of year 2005. Composition by traffic type and their respective share are shown in the table and the chart. Motor cycles / scooters constituted 48% of the total numbers and motor cars, jeeps and station wagons constituted 35%.

Table 9.31 Modal Split in Rawalpindi, 2005

S. No. Type of Traffic No. of Vehicles Percentage 1 Motor cars, jeeps & station wagons 80628 35 2 Motor cycles/ scooter 109331 48

3 Trucks 8367 4 4 Delivery vans 11540 5 5 Buses 9105 4 6 Taxies 4037 2 7 Rickshaws 4922 2 8 Others 2080 1 Total 230,010 100


9.2 Gaps and Constraints 9.2.1 The migration from rural to urban areas is continuously increasing which indeed

is a burden on the existing civic community in the urban areas and the city governments are facing a great challenge, which they can only manage with proper financial authority and availability of resources at their disposal. Varied nature of projects is under implementation by several provincial departments and the Local governments through budgetary allocations made to respective departments, however, one can observe a lack of coordination among executing agencies. The emphasis of Budget allocation to Urban Transport system indicate


9-20


tendency to upgrade and expand road network. The allocations for maintenance are very small. The visible gaps observed in such allocation are as follows:

• No allocation has separately been made to create a dedicated bus lane. • No strategy exists to increase the fleet of large buses on the road thus

encouraging wagons and rickshaws. • The investment on dedicated pedestrian way is limited to creation of footpaths

only. • No effective strategy exists to remove encroachments. Any such strategy shall

also require investment to achieve the objective. • Mass Transit system for Lahore shall also require huge investment for which a

financial structure needs to be devised. • Lahore Ring Road Project is being planned on the side lines by

Communication and Works department with considerable delay in its implementation resulting in congestion within the city.

• New bus stands need to be created for each city. • Parking for Buses fleet, and workshop facilities need to setup. • New motor vehicles testing facilities need to be set up. • Dedicated parking Plazas/areas spread over each city need to be set up. • Fund allocation for creation of inter modal linkages i.e., allocation of space

for creation of Parking and related facilities need to be made. 9.2.2 The future budgets for urban transport system should allocate special fund for

each item mentioned above. The overall urban transport policy shall define the segments which require investment in such facilities. Under the umbrella of the policy, planning should be initiated to assess the quantum of funds required during years 2008 through 2021 for all five cities. Future budgetary allocation should be made in a systematic manner under the long term plans with specified milestones to be achieved every year.

9.2.3 The long term plan should also measure the economic benefits resulting from

investment in urban transport. The multi-focus strategy shall result in tremendous saving in vehicle operating costs as well as saving in Travel Time. The alternate travel options will greatly improve the situation when it reduces congestion on roads, thereby reducing operating cost on roads and less travel time for users of Mass Transit system, buses and private vehicles.

9.2.4 Another major gap exists in mechanism of financing which is primarily dependent

on public sector allocation. There is a need to create a clear distinction between the role the public sector in managing the urban transport system and areas where private sector can be entrusted responsibility.

9.3 Potential Options and Sources of Funding


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9.3.1 The urban transport system requires investments for development of a transport infrastructure and strengthening the financial capacity of implementing agencies. Huge capital investments are required to bring urban transport system at desired level. Such investments can be either for setting up capital intensive mass transit systems or segregated right of way for cycles and pedestrians, or new buses for public transportation. Neither provincial government nor city governments have the requisite resources to finance such schemes. Therefore alternative methods of financing would have to be explored.

9.3.2 At present the income from the sector is being collected by several departments.

Provincial Government collects road taxes and then extends allocations to urban transport sector through several departments. City Governments collects certain revenues and they become part of their overall budget. Details of provincial receipts from motor vehicles and communications for year 2007-08 are given below.

Table 9.32 Provincial Receipts From Motor Vehicles Budget Estimates 2007 – 08

Particular Rs. In Millions

Registration Fee 1,881 Miscellaneous Receipts 325 Receipts under Provisional Motor Vehicle Act 3,710 Motor Vehicle Fitness Certificate 150 Motor Vehicle Route Permit 265 Total Receipts 6,331

9.3.3 The budget of Communication and Works Department indicate a meagre

collection of Tolls on roads and bridges in Punjab as shown in table below.

Particular Rs. in Million

Building Rent 47

Tolls on Roads and Bridges 610

Recoveries of Expenses 5

Recoveries of Over-Payment 4

Works-Other 218

Fee for use of Row 10

Taxes on Roads & Bridges 1

Receipts from Workshop 5

Total 900 9.3.4 The formula adopted by Japanese government for sharing investment on urban

transport sector was reviewed. The formulae indicate that the investment in urban transport is shared by national, provincial governments and cities in an agreed proportion which has been improved over a period of time in line with the


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resources of respective governments. Details of various kinds of taxes on cars and fuel and the sharing formula are given below:

Various Kinds of Taxes on Car and Fuel

Federal Flammable oil tax

Petroleum gas tax

Motor vehicle weight tax

Provincial Gas oil receipt tax

Automobile acquisition tax

Local road tax

Petroleum gas transfer tax

Automobile tax

City, Town and Village Light automobile tax

Automobile weight transfer tax


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Japanese Road Management System

Responsibilities of Maintenance , Construction and Planning of the Roads Sharing of Expense for Construction ,

Management and Maintenance(C/M/M) Institutions Classification and control

Form of management Task and Responsibility

Federal, Provincial, City Ministry of Land and Transport

National Highway Governmental Federal Government is responsible for construction , management and maintenance

1/2 , 1/4 , 1/4

Expressway Private companies

Federal Government has the control on them

Private sector collect capital and some parts are covered by public

Motorway Private company same as above Private sector collect capital and some parts are covered by public

Provincial government Provincial road Provincial Provincial Government is responsible for construction , management and maintenance

1/2 , 1/4 , 1/4

Rural Public company Public company same as above 1/2 , 1/4 , 1/4

City , Town and Village City , Town and Village's main road

City, Town and Village

City , town or village is responsible for C/M/M under the provincial initiative

1/2 , 1/4 , 1/4

Divisional road same as above City , Town or Village is responsible for C/M/M

1/2 , 1/4 , 1/4

Special City City road except for National road

City Responsible for C/M/M of provincial and city roads within its territory

1/2 , 0 , 1/2


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Japanese Road Management System

Responsibilities of Maintenance , Construction and Planning of the Roads Sharing of Expense for Construction ,

Management and Maintenance(C/M/M) Urban highway of

Public company Same as above Responsible for C/M/M of

provincial and city roads within its territory

1/2 , 0 , 1/2 and private some times

Divisional road Same as above same as above 1/2 , 0 , 1/2

The others Roads within Port area or in Agricultural area

Government or City

Responsible for C/M/M of roads within its port area or agricultural area

1/2 , 1/4 , 1/4

Ministry of Land and Transport

Railway Private company Private company has the responsibility of C/M/M

Private sector collect capital and some parts are covered by public

Public buses Same as above same as above Private sector collect capital and some parts are covered by public


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9.3.5 A mechanism to use Road tax revenues for development of Roads and related infrastructure need to create and recovery of full maintenance cost form users should be made.

• A mechanism should be devised to pool all income in a manner that it can

be applied towards the sector from where it is generated. Further, new avenues of raising Funds need to be explored.

9.4 Public Private Partnership (PPP) 9.4.1 The policy should encourage a liberal use of PPP Model in activities such as:

• Construction, operation and maintenance of parking facilities, • Vehicle testing and certification facilities, • Construction and Management of terminal facilities. • Investment on Large Buses; and • Rolling stock for Mass Transit system..

9.4.2 Participation of private sector has to be done under conditions that strike a fair

balance between obligations of the government and the profit motive of the private operator. During meetings with stakeholders, several proposals to generate additional funding were given, which included the following:

• Public private partnership. • Strengthening of structural base. • Consortium with schedule banks/donor agencies • Duty from fuel, • Share from commercial fees and development charges. • Tolling from commercial goods and services. • Share from fees on property sales. • Share on planning and building permissions fees. • Parking charges. • Traffic fines and penalties.

9.5 Recommended Sustainable Financing Mechanisms 9.5.1 Dedicated Traffic and Transport Fund 9.5.1.1 A Dedicated Fund for the sector should be created wherein all collecting agencies

transfer Road related taxes to a Dedicated Fund Account. The collection agencies may recover their collection cost prior to transferring funds to dedicated account. The dedicated fund shall provide an effective and sustained resource mobilization through:


9-26


• Transfers fror Federal/Provincial Governments/ donors / private sector. • Share from commercial fees, development charges, value addition taxation

and other sector related collections. • Road / transport related taxation i.e. fuel charges, congestion charges, road

user charges and share from various form of tolling on commercial goods. 9.5.1.2 The sources and application of funds into the dedicated account are illustrated in

the chart below:

Figure 9.5 Dedicated Fund Account

9.5.2 Endowment Fund(s) 9.5.2.1 To support financing under public private partnership, several endowment funds

may be set up each serving a specific purpose i.e., investment on buses or rolling stock for mass transit system or parking plazas. The objective of such funds will be to support the private sector in financing the project at affordable cost. An example of an Endowment Fund for new Buses is given in the table below:

Govt. Loan

(Interest Free) Bank(s) loan

(Interest 14%) Rs. 2 Billion Rs. 2 Billion Total Fund Rs. 4 billion Interest rate 7% per annum

9.5.2.2 Under the illustration, Provincial government grants a loan of Rs. 2 billion which

is equally matched by a consortium of commercial banks to finance the leasing of buses by private sector. For each bus leased by private sector, Government may contribute say a 20% down payment against lease of buses (Federal Government may be requested to provide grant to meet this cost). Private sector pays 80% of


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the loan in monthly installments over 3 years at an interest rate of 7% per annum. Following benefits may accrue from the Endowment Fund:

• Over 1,200 new buses on Road in year 1 • Over 400 new buses on road every subsequent year • Cost to Government shall be the interest free loan of Rs. 2 billion managed by

Bank(s). • Benefit to private investor includes:

Buses at affordable price (80% of cost) No upfront investment on new buses added into existing fleet Better return on investment

9.5.3 New Taxes 9.5.3.1 The new taxes should be considered to balance the road usage among various

modes of transportation. Any new tax to be levied has to provide a corresponding benefit to road users. Therefore, the new policy shall on one hand offer facilitation to commuters and may impose certain new taxes. The primary focus should be on generating funds from the system itself as proposed through dedicated fund, which may be managed by the Authority ultimately responsible for the urban transport sector.

9.5.3.2 To control vehicle population on the roads and encourage public to use alternate

means of transportation, i.e., buses and mass transit, a one time tax on vehicles at the time of vehicle registration may be considered. However, the timing for implementation of such tax has to be co-related to the availability of decent alternate means of transportation.


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9.6 Some example of Road Construction and its Finance 9.6.1 The Administration of Road Construction in Korea

In Korea , in order to manage and operate effectively the sustainable expansion of the facilities for social indirect social capital , which comprise roads , railway ,airport , port and others , and form main parts of national development , Korea is managing the special institute for the transport facilities improvement since 1994 . The big characteristics of this system are to change the gasoline tax and the s

pecial consumption tax on gas oil to maintain the transport facilities and to change them into the taxes for limited areas like transport , different from general fund in the past . And thereby the fund collected cater for not only the road but also the railway , the airport , and port facilities by special account for the transport systems,

Figure 9.6 Schematic chart of Special account for transport institute in Korea Figure Schematic chart of Special Account for transport institute in Korea

Resouce ofgeneral accounts

Resouce ofTraffic taxes

Other revenue.

Special account for traffic facilities

Accountfor roads

Account forrailways

Account forharbour

Account forAirport

Account forlarge region

Source : Material inside the Ministry of Transport Constructions of Korea


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Table 9.33 Existing Taxes for Transport in Korea

Existing Taxes for Transport in Korea

Taxes for Transpor Facilities

Year of Introduction 1944

Purpose of Taxes

Establishment of Revenue Source forinvestment on Transport Facilities

Table Basic Law Law of Transport Taxes

Special Account related Special Account for Transport Facilities

Main Object of taxation ○Weight taxes on　　Gasoline and others related to it○Ｗｅｉｇｈｔ　ｔａｘｅｓ　ｏｎ　

　Ｌｉｇｈｔ oil and others related to it

Ｓｏｕｒｃｅ　：National Tax Administration Agency , year 2000 : Korea


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Table 9 .34 D etails o f R evenue and E xpengiture accounts set in E nforcem ent regulation

Title o f A ccounts R evenue E xpend iture

・ 65 .5% o f T ranspo rt Taxes・ R esearch , S tudy , M anagem ent , O peration and C ontro lo f C onstruction o f R oads

・ Special C onsum ption Tax es on theP assenger car

・ F inancing and Loan to G overnm ental investm entA gencies to support road netw ork p ro ject

R oad A ccounts ・ Transfer fro m G eneral A cco untfund s and loan to o ther governm entalA gencies

・ C om pensation o f Loan and Long term C red it related toroads P ro ject

・ Tem porary receip t o f oher A ccounts・ Lo an・ Lo ng Term Loan・ Tentative B orrow ing from N ational P o licyFund・ N ational R evenue fro m Toll R oads・ O ther R evenue from A dm inistration andO peration o f o ther R oads

・ 18 .2% o f T ranspo rt Taxes・ C onstruction o f general basic facilities fo r railw ay , itsIm pronem ent , and its M odernizationy

and its attachm ent exclud ing R ailw ay andTrack

・ A ssistance and Financing to construct urban railw ay andoperate them

・ Transfer fro m G o vernm ent A ccount・ E xpansion , A ssistance and F inancing to construct R ap idTransit

R ail A cco unts ・ Fund from N ational Treasury to constructrap id Transit

・ R eserch , S tudy , and Technical developm ent fo r R ailw ayC onstruction and O peration

・ R evenue fro m Financing Fund to constructand op erate urban R ailw ay and R ap id Transit

・ C om pensation o f the P rincipal o f B o rrow ing , Loan , andR ent

・ Lo an from o ther A ccount・ Lo an・ B o rrow ing from C red it・ Lo an from the Fo undatio n fo r N ationalp o licy

・ 4 .3% of T ransp ort Tax es・R esearch and Study fo r Ｃｏｎｓｔｒｕｃｔｉｏｎ and E xpansion　ｏｆNｅｗ　A irport , Im provem ent o f Facilities fo r safety ,andC ounter m easures fo r N o ise

・ Transfer fro m G eneral A cco unt ・ A ssistance , F inancial H elp , and Loaning fo r N ew A irportC onstruction

・ C harge fo r using A erp ort and airpo rtFacilities fo r safety

・ R eserch , S tudy , and Technical developm ent fo r N ewA irpo rt C onstruction and O peration

A irport A cco unts ・ E xpend iture to keep o ff the no ise ・ C om pensation o f the P rincipal o f B o rrow ing , Loan , and・ E xpend iture o f transfer to avo id no ise・ F iscal Fund paid fo r N atio n from A irportC o operation o f K o rea・ F inance fo r N ew A irpo rt C o nstruction・ B o rrow ing from o ther A ccounts・ R evenue fro m o ther Lo an・ Tentative Lo an from N atio nal Fund top erfo m national P o licy・ O ther R evenue

・ 4 .3% of T ransp ort Tax es・ R esearch , S tudy ,and D evelopm ent o f Techno logy onC onstruction , O peration and C ontro l o f T ranspo rt Facilitiesfo r w ide area


9-31


・ 4.3% of Transport Taxes・ Research , Study ,and Development of Technology onConstruction , Operation and Control of Transport Facilities forwide area

・ Transfer from General Account ・ Assistance , Financial Help , and Loaning for TransportFacilities for wide area

・ Revenue from the assistance and financing toconstruct and operate transport facilities forwide region

・ Compensation for Borrowing , Credits , and the Principalof loan

Transport Facilitiesfor wide area

・ Receipt and Transferred Fund from otheraccounts

Account ・ Revenue from Loan・ Tentative Loan from National Fund to perfomnational Policy・ Other Revenue・ Transfer from General Account ・Research and Study related to Port・ Rental fee for Port Facilities ・Construction , Maintenance , and Repair of Port Facilities・ Rental fee for National Facilities related toPort and Charge for National assets

・ Expension and Financing for Korea Container WharfCorporation

・ Rental or usage fee for coownership of thesurface of water

・ Compensation for Tentative Receipt , Rental fund , andBorrowing

Port Account ・ National Tax for Korea Container WharfCorporation・ Financing and Lental fee for Korea ContainerWharf Corporation・ Tentative Borrowing and Transfering fundfrom other fund・ Borrowing・ Revenue from Loan・ Tentative Loan from National Fund to perfomnational Policy・ Other Revenue

Reserve ・ 10% of Transport Taxes ・ Cistribute necessary fund acco9rding to Buget

Source : Material inside the Transport Constructions of Korea


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9.5.2 Improvement of infrastructures by private fund Almost all infrastructures were improved by public sector in the world so far . But recently , there are many case of the improvement o public facilities by

private sector using the private funds . The number of so called Private Financing infrastructure are growing up to some extent .

The method of the private funding is the formula in which the private company acquired the concession to construct , operate , and compensate the infrastructure like a road by acquiring the necessary fund from its users in determined terms .

Table 9.35 Some examples of Improvement of Infrastructure by Private Funds

1 Express wayName of Project Nation Scale of Project Main body of Project RemarkExpress way betweenGuangzhou and Wikipedia China 12 hundred million dollar GuangzhouShenhen Zhuhai

Superhighway In operationNorth South Link (Urbanexpressway) Indonesia 16 kirometer Citra Marga Nusaphala persada In operationThe Secand ＵｒｂａｎExpressway Ｔｈａｉｌａｎｄ

230 hundred million barts, 31 kirometers Bangkok Express way Co.,,Ltd In operation

Sidney Harbour Tunnel Australia 7 hundred millionndollars , 2.3 kilometer

Sidney Harbour TunnelCompany In operation

2 Railway, Sub wayProject Name Nation Scale of Project Main body of Project Remark

Manila elevated railway Philippine 5.5 hundred million dollarsLocal Company Under

Elevation of Railway Ｔｈａｉｌａｎｄ800 hundred million barts, 18 kilo meters Hopewell . Holding Under

construction

3 The Second Express way in Bangkok1) Cryant :　ETA(Express Raiway Corporation , ubder the Ministry of home affairs)2) ＢＯＴCompany :　ＢＥＣＬ（Ｂａｎｇｋｏｋ　Ｅｘｐｒｅｓｓ　ｗａｙ　Ｃｏ．Ｌｔｄ

Capital : 50 hundred million bartsMain Investmentor : Kumagaya kumi : 65.5%

: Asia Development Bank : 4.5%: Bangkok Bank : 9.4%: Kuruntai Bank : 3.6%: Other Bank and etc

3) Advance of fund : Bank Syndicate : Approximately 200 hundred million barts

Source : Improvement of Infrastructures by Private Company in foreign countries ; Heisei 9 year March


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9.5.3 Example of Road Fund in The USA Thinking of the funding system of the roads construction , the relation among the federal and state and rural government have to be thought . Historically the improvement of road network is in charge of state government , and at present state expend biggest parts of fund related to roads . TEA-21(Transportation Equity Act of 2003 ) said as follows . Assistance for the public transport is principally aiming giving the law incomer , the old age pensioner . or the handicap pensioner chance to work .

Table 36 Usage Purpose of the Road Fund In the State Level

Road FundRoad managedby State Rural Road

Expenditureto collect

Diversion forPublic Transport

Diversion forGeneral Fund Total

State Fuel 96,386 43,781 1,372 8,304 6,926 156,772year '92 to 97 Tax 61.48% 27.93% 0.88% 5.30% 4.42% 100.00%

State Gravity Tax 51,629 17,777 15,510 4,650 33,362 122,929Vehicle Tax 42.00% 14.46% 12.62% 3.78% 27.14% 100.00%

148,015 61,558 16,882 12,954 40,288 279,701 52.92% 22.01% 6.04% 4.63% 14.40% 100.00%

State Fuel 113,696 53,577 1,567 9,318 11,395 189,553year '98 to 03 Tax 59.98% 28.26% 0.83% 4.92% 6.01% 100.00%

State Gravity Tax 66,830 24,746 17,838 5,639 34,514 149,567Vehicle Tax 44.68% 16.55% 11.93% 3.77% 23.08% 100.00%

180,526 78,323 19,405 14,957 45,909 339,120 53.23% 23.10% 5.72% 4.41% 13.54% 100.00%

Source : Nighway Statistics ( in United State )

Total

Total


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10. DRAFT PUNJAB URBAN TRANSPORT POLICY (PUTP) 10.1 VISION OF PUNJAB CITIES OF THE FUTURE TRANSPORT

DEVELOPMENT 10.1.1 All the functions, such as planning, building, development control, public

transport, traffic engineering, roads development, drainage, environmental regulations, enforcement of traffic, law and order, financing, coordination with the various institutions are supposedly essential ingredients to make an effective transportation policy and system for a city. The vision of large cities of Punjab would be with the following aim to develop a multi-modal transportation system within the target year 2020.

(1) An efficient, economical and well managed comprehensive (2) Financially sustainable (3) Environmental and lady friendly

10.2 Objectives of a Sustainable Urban Transport Development System 10.2.1 The consultants have identified the following severe problems in Punjab in order

to prepare a sustainable urban transport development system:

• High population growth rate (around 2% per anum increase) and an in-migration. High volumes of vehicles. The vehicles are annually growing at a rate of around 12% in the five big cities of Punjab.

• Haphazard planning and poor execution of projects. • Severe traffic congestion and grid-lock. • Extremely high transport costs due to an in-efficient transportation system. • Environmental degradation. • Inadequate institutional setup not coping with the governance and service

delivery mechanism requirements in the transport sector.

10.2.2 In this Section the Consultants have prepared a Draft Punjab Urban Transport Policy (PUTP) based on the entire exercise during the course of the study of consultative procedure and meetings, Stake-holders Workshop and varied data collection and analyses

10.3 Policy

10.3.1 To assure the successful accomplishment of the vision, following policies are

selected to provide. In the way of implementation, we need to involve the masses in a democratic way; so that we can enlighten them and come up with pragmatic


10-2


projects. Transportation is a dynamic and an interactive process interlinked with a variety of other activities and hence we cannot improve the transportation system in isolation. We need to improve the governance, efficient service delivery mechanism, unified and decentralized chain of command at grass root level.

10.3.2 Policy and Plan Making

① Develop clear and consistent policies and plans pertaining to the critical elements of the urban and regional planning

② Improve the governance, efficient service delivery mechanism, unified and decentralized chain of command at grass root level

③ Consolidate all departments as per the PLGO 2001 devolved under this system to have an independent and a unified transport institution under the respective city governments

④ To place the requisite check and balance system as prescribed in the laws and procedures and empower the Nazim

⑤ Develop Multi-modal and Integrated Long Range Policies and Plans 10.3.3 Institutional Development and Strengthening

⑥ Implementation of IRP ⑦ Enhance Transportation Related Technical Capacity ⑧ Standardization Of Procedures

10.3.4 Improvement of Regulations

⑨ Update of Motor Vehicle Act, 1965 ⑩ Improvement of Planning Rules And Regulations

10.3.5 Alternative Financing Mechanism

⑪ Improve the transportation related financial capabilities of the city government. ⑫ Creation of Dedicated Fund ⑬ Endowment Funds ⑭ New Taxes

10.3.6 Traffic Awareness

⑮ Effectively Improve The Road Safety Procedures ⑯ Enhancement of the Traffic Rules Enforcement Capability

10.3.7 Provision and Maintenance of Road Infrastructure

⑰ Pragmatic Steps are Required To Ease Congestion ⑱ Develop Pragmatic Relationship Between The Land-Use And Transportation ⑲ Land Use and Environment & Women friendly Infrastructure ⑳ Axle Load Control

10.3.8 Improvement of Public Transport System

21 Improve The Public Transport System 22 Encourage Pragmatic And Planned Multi-Modal System For The Five Big


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Cities 23 Introduce Environmental Friendly Transportation System

10.4 Process 10.4.1 Actions are taken timely to assure the effective performance. Some are started at

once at starting time of the plan and others are done continuously through the term of plan.

10.4.2 Performance Indicator 10.4.2.1 To show the progress of strategy, performance Indicator is introduced for each

strategy. Monitorable Performance Indicators and Levels of Service Standards (LOS) should be developed. Adopt Best International Practices and Standards with Local Adaptation of the Transportation Planning and the Traffic Engineering Procedures and Processes.

10.4.2.2 Draft Punjab Urban Transport Policy (PUTP)

Action plan of draft PUTP is developed as shown in Table10-1.


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Table 10-1 Action Plan for PUTP

Ref. No. Policy Timing Performance Indicator

10.3.1 Policy and Planning

1

Develop a clear and consistent policies and plans End of 20xx Length of the constructed roads

Performance of Plan

2

Improve governance, efficient service delivery mechanism End of 20xx Number of public officers

Construction cost per citizen

3

Consolidate all the departments as per the PLGO 2001 devolved

End of 20xx Numbers of Bureaucrats

4

Place the requisite check and balance system as prescribed in the laws and procedures and empower the Nazim

End of 20xx Rate of support vote gained

6

Develop Multi-modal and an Integrated Long Range Policies and Plans

End of 20xx Reduction of commuting time distance Velocity of the car at the determined time

10.3.2 Institutional Development and Strengthening

1

Implementation of IRP

End of 2011 Accomplishment of IRP No. of cars used for work or etc Velocity of cars on the road

2

Enhance Transportation Related Technical Capacity End of 20xx

Preparation of Manual of Capacity Building No. of traffic accidents Driving length of cars a day

3 Standardization Of Procedures End of 20xx Preparation of Procedure


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10.3.3 Improvement of Regulations 1

Update of Motor Vehicle Act, 1965 End of 2011 Enactment of the law

No. of enforcement of traffic rule 2

Improvement of Planning Rules And Regulations End of 20xx Number of improved rules and

regulations 10.3.4 Alternative Financing Mechanism

1

Improve the transportation related financial capabilities of the city government

End of 20xx Number of road safety facilities

2

Creation of Dedicated Fund End of 20xx Amount of fund

3

Creation of Endowment Funds End of 20xx

4

Creation of New Taxes End of 20xx Amount of new taxes

Number of taxes on cars 10.3.5 Traffic Awareness 1

Improvement of the Road Safety Procedures End of 20xx Number of accidents per road length

2

Enhancement of the Traffic Rules Enforcement Capability End of 20xx

Number of traffic polices Number of persons captured violating traffic rule

10.3.6 Provision and Maintenance of Road Infrastructure 1

Develop Pragmatic Relationship Between The Land-Use And Transportation

End of 20xx

Average trip length by car types or by trip purpose

2 Axle Load Control End of 20xx Enforcement


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Number. of weighing machine station 10.3.7 Improvement of Public Transport System End of 20xx

1

Improvement of The Public Transport System End of 20xx Number of users by car

Modal split of users 2

Encouragement of Multi-Modal System For The Five Big Cities

End of 20xx

Number of users by public transport Number of public bicycle stand

3

Introduction of Environmental Friendly Transportation System

End of 20xx

Exclusive lane for bicycles and Animals

4

Introduction of Lady friendly transportation system

End of 20xx

Number of the seats for women exclusively

Documents

Urban Transport Policy Punjab pakistan