1.a - Planning Commission

Document Sample
1.a - Planning Commission Powered By Docstoc
					Table of Content

                            Current Situation [ICT]                                1.a



    Usage & Skills                                        Usage & Skills


    Infrastructure                                        Infrastructure

                                  Usage & Skills

                                                                    Consumer     0.36

                                                                    Government   0.07
Source: Waverman, L, Dasgupta, K., (2010), LECG,
Connectivity Scorecard 2010                                         Business     0.57
                              Current Situation [ICT]                                   1.a

Why is e-commerce still at an infant stage?
                     E-readiness         Prioritization       Staff training Training
                     (out of 70)*        of ICT                              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

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]   1.b

Source: Doing Business in Pakistan 2010, World Bank
                       Current Situation [Transport]   1.b

Source: Doing Business in Pakistan 2010, World Bank
       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)

                  Integrated Management of Cities                                2.b

                                      • Avoiding duplication of property
                     Intra              records
                    (within)          • Greater coordination and
                                      • Faster and Innovative service delivery
                      Inter           • Info. sharing across regulatory bodies
                                      • Greater citizen participation

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

                             Inspiring Youth                                2.d

•   Better internet access opens the whole world of ideas to users thus
    promoting entrepreneurship e.g. ‘’

•   Improves information flow in job market through university dedicated
    job portals like ‘’

•   ‘Shell Tameer’ program provides free information, advice and
    support to youth for developing their entrepreneurial skills

             Invigorating Community Development                           2.d

•   Broadens the platform where one could interact with the online
    community, e.g. and

•   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)

                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.
                  ISSUES AND REFORMS FOR CONNECTIVITY                                            3

                     ISSUES                                            REFORMS

ICT                                                 ICT

• Limited coverage and fewer local applications     • Provision of online services e.g. Paying
• 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                                       Road and Rail

• Rail spending- Rs.40bn          2004-09           • Independent regulatory body for Railways
• Road spending - Rs.141bn
                                                    • 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                                             3

                     ISSUES                                             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

• 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

Shared By:
wang nianwu wang nianwu http://
About wangnianwu