Table of Content
2
Current Situation [ICT]
1.a
Infrastructure
Consumer
Usage & Skills
Usage & Skills
Government
Infrastructure
Infrastructure
Business
Usage & Skills
Weight
Source: Waverman, L, Dasgupta, K., (2010), LECG,
Connectivity Scorecard 2010
Consumer
0.36
Government
0.07
Business
0.57
Current Situation [ICT]
1.a
Why is e-commerce still at an infant stage?
E-readiness
(out of 70)*
Prioritization
of ICT
Staff training Training
services
Pakistan
66
74
112
99
China
56
17
50
47
India
58
19
34
32
Indonesia
65
71
33
48
Malaysia
38
14
16
26
Singapore
7
1
2
1
Countries
Lower number is higher in ranking; 133 is the lowest rank
Source: The Global Information Technology Report 2009-10
*The 2009 e-readiness rankings, Economist Intelligence Unit
Current Situation [Transport]
Source: Doing Business in Pakistan 2010, World Bank
1.b
Current Situation [Transport]
Source: Doing Business in Pakistan 2010, World Bank
1.b
Improving Productivity through better Connectivity 2.a
•
Industrial Information Network (IIN) to enhance productivity through:
– Online product catalogue and other marketing tools
– Up to date business information and market analysis
(source: SMEDA)
•
An additional broadband line for 100 people increases productivity by
approximately 0.1%
(source: Economic Impact of Broadband: An Empirical Study, 2009)
•
If road and rail network expand from 2.4 meters/acre to12.1 meters/acre,
growth in GDP will be higher by 1.4 % (Calderon and Serven, 2004)
7
Integrated Management of Cities
Intra
(within)
ICT-enabled
connected
governance
Inter
2.b
• Avoiding duplication of property
records
• Greater coordination and
communication
• Faster and Innovative service delivery
• Info. sharing across regulatory bodies
• Greater citizen participation
8
Source: UN E-Government Survey 2008
Promoting Domestic Commerce
•
2.c
3% loss in trade of perishable goods if there is a delay of one day
(Doing Business in Pakistan 2010)
•
ICT-based back and front office to promote businesses via:
– reduced transaction costs
– enhanced transparency and hence promote trust between businesses
– greater innovation in service delivery
(source: UN E-Government Survey 2008)
•
Infrastructure development in poor regions reduces production and
transactions costs (Gannon and Liu, 1997), which serves as a stimulus for
domestic commerce
9
Inspiring Youth
CONNECTIVITY
FLOW OF IDEAS
AND INFO
2.d
ENTREPRENEURIAL
YOUTH
•
Better internet access opens the whole world of ideas to users thus
promoting entrepreneurship e.g. ‘www.ted.com’
•
Improves information flow in job market through university dedicated
job portals like ‘qau.rozee.com.pk’
•
‘Shell Tameer’ program provides free information, advice and
support to youth for developing their entrepreneurial skills
10
Invigorating Community Development
CONNECTIVITY
SOCIAL
NETWORKING
2.d
COMMUNITY
DEVELOPMENT
•
Broadens the platform where one could interact with the online
community, e.g. pakwatan.com and facebook.com
•
Internet access leads to community development (Mason, 2003)
•
Poor households of rural communities in Viet Nam with paved roads
- 67% higher probability of escaping poverty (Glewwe et. al, 2000)
11
Poor connectivity and constraints on
springboards of NDA
Productivity losses
•
More than 30% of agricultural output is currently wasted (Planning
Commission) due to inadequate farm to market roads, lack of cold
storage facilities and obsolete and underpowered trucking fleet.
Fragmented internal markets
•
Significant price differentials in markets due to trucking speed of half of
that in EU and
Rail Freight Productivity
1/3rd of India
1/8th of China
(World Bank, 2010)
Unfriendly Cities: Public transport
•
Unorganized and infrequent public transport with no safety and quality
control has forced people to resort to some sort of private transport.
Ill informed youth
•
Poor university-industry nexus in Pakistan is exposed youth to high risk
of acquiring irrelevant skills. Pakistan is ranked 92 out of 133 countries.
12
ISSUES AND REFORMS FOR CONNECTIVITY
ISSUES
3
REFORMS
ICT
ICT
• Limited coverage and fewer local applications
• Provision of online services e.g. Paying
taxes
• Old copper transmission lines
• Training institutes and rural internet access
• No legal cover for electronic signatures
• Electronic Signature Act should be passed
Road and Rail
• Rail spending- Rs.40bn
• Road spending - Rs.141bn
Road and Rail
2004-09
• Independent regulatory body for Railways
• Pakistan Railway (PR) should be privatized
• Poor rail freight & higher trucking charges
• Good practices -Sialkot Dry Port Trust model
• Long clearing times & higher costs at dry ports
• Electronic customs declaration form
• Excessive burden on National Highways
• Pakistan’s Customs Computerized system
ISSUES AND REFORMS FOR CONNECTIVITY
ISSUES
3
REFORMS
Aviation
Aviation
• Long delays on local flights
• Routes should be auctioned
• Few direct flights to US, China and EU
• All airports should be privatized
• No direct flights to South East Asia and Africa
• PIA should also be privatized
•18 hour journey to US can take up to 26 hours
• Sixth freedom right should be introduced
Regulators
Regulators
• Are also market participants
• Should only be umpires
• Preferential treatment towards government • Instead of subsidizing service providers, a
Owned Organizations
competitive environment must be provided
• Weak implementation of quality control
• Must ensure minimum quality controls
• Too many restrictive conditions
• No compulsory operational requirements
• Lengthy documentation period
• Time limit for responding to applications
Conclusion
• Fiscal incentives should be replaced with deregulated competitive
market environment
• Training institutes should be established in rural areas and ICT
access must be provided to government schools
• An independent regulatory body should be created for Transport
sector (Railways and Trucking) to promote unbiased policies