The transport sector had been hit hard during Covid lockdowns. The reopening of the economy has brought a sense of reassurance
I
n the wake of the government’s decision to allow reopening of various sectors in a bid to return to pre-Covid ‘normal’, the transport sector has started regaining its lost rhythm following a series of lockdowns during the past almost six months.
The resumption of transport services has come about in two phases. In the first phase, on May 23 the government eased the lockdown with strict SOPs in place. In the second phase, begun on August 10 after the government did away entirely with the lockdowns, public transport was resumed with only a requirement for face masks. While, the first phase worked like a first-response treatment for the ailing transport sector and its allied industries, the second has the potential of a robust economic recovery in the sector.
Thousands of jobs in the transport sector were at the risk of being axed amid an economic slowdown due to months-long lockdowns but the resumption of the sector has provided a sense of financial security. Over the last few days, the number of passenger using public transport has increased. Bus terminals, passenger waiting areas, ticketing windows are all experiencing medium levels of rush and activity.
Malik Nadeem, president of the All Pakistan Public Transport Owners’ Federation (APPTOF), and Mian Khan Baloch, president of the Workers’ Federation wing of the APPTOF, say the return of the passengers has been encouraging. “The number of buses that operate in the Punjab varies between 10,000 and 15,000. Transport functionality has not touched full capacity so far but the new situation has allowed almost 7,000 buses to ply on roads.” For public convenience, they say, the federation has not raised the fares beyond 98 paisa per kilometre, as agreed with the government.
The reopening of the economy has taken the centre stage. It augurs well for the market forces and the public as the virus-related restrictions had cost Pakistan a third of its revenue and the GDP growth had dropped to negative 0.2 percent to negative 0.4 percent.
With trains resuming operations, the number of passengers using this mode of transportation is also on the rise. Before the outbreak, the Pakistan Railways would operate 142 trains on its 1,885-km-long track for some 700 million passengers every year. Almost 200,000 people used to travel by trains every day.
Quratul Ain, the public relations director for Pakistan Railways, says that with the recent developments regarding resumption of services, the railways had reclaimed its lost customers. Before Eid ul Fitr, some trains got the green signal to operate under government-issued SOPs, accommodating 60 percent of the regular passengers, she says. “Now the rest are also being accommodated,” she adds.
Since March, following the lockdowns due to Covid-19, the Metro Bus system had been left paralysed in the Punjab leaving around 0.1 million passengers high and dry in Lahore alone. The loss of revenue had taken a heavy toll on the financial health of the Mass Transit Authority which runs the service.
Muhammad Ozair Shah, the general manager in charge of operations at the Punjab Mass Transit Authority (PMA), expresses optimism over the restoration of the Metro Bus services saying that it would promise safe, efficient and comfortable urban transportation system to the public. “The confidence of the people had been shaken due to the virus but that is now on the mend,” he says.
Currently, he says, the passenger numbers remain low because some of the industrial workers have yet to return to the city from their hometowns and villages. As people rejoin their businesses and workplaces in the coming days, he says, the passenger numbers are expected to increase. But there has been a monetary impact on the system. He says that the authority had to pay around Rs 2.5 billion to keep the system intact during the pandemic. With the lockdown almost entirely eased, he says the losses will be made up once the system starts operating at full capacity.
Air traffic is also recovering after the government lifted the lockdown. Domestic flights are almost fully functional. The government has permitted the resumption of all types of international and domestic flight operations as per pre-Covid-I9 summer schedule for 2020, including cargo and special flight operations.
Yasir Ali, the CEO of Star Aviation, says that it was good news that most of the 20 hotspots in major cities had sprung into operation. The passengers’ inflow that had reached 10 percent had now jumped to 40 percent, he says. “Though ticket buying is not up to mark but it is expected that that trend will soon pick up too.”
The blue economy that depends on maritime transportation is also ready to benefit from the current situation. The Pakistan National Shipping Corporation (PNSC), despite macroeconomic challenges, managed to achieve 6 percent increase in its profit this year Rs 1,411 million (from July 2019 to March 2020). “The profitability was dented from May to August but it is hoped that the business is all set for a rebound,” an official of the Ministry of Maritime Affairs says.
Last year, the transport and logistics sector grew at a rate of 3.34 percent and contributed 12.9 percent to the GDP. According to the Pakistan Economic Survey 2018-19, the transport sector was expected to create an additional 0.6 million jobs after the completion of CPEC’s physical infrastructure projects. With Covid-19 apparently on the decline, growth indicators have started showing life again.
Chaudhry Zulfiqar Ali, president of the Punjab
Goods Transport Association (PGTA), says that the goods’ transport sector has
yet to revive completely. “It may perform well if the wheels of the economy start
turning,” he says. The business has picked up following the reopening of
various sectors by the government, he says, adding that this has resulted in a 15
to 20 percent improvement in the sector. But he says that the sector is in
desperate need of a bailout package. “We are considering writing a letter to the
government to seeking financial aid as the virus has brought the sector to the
brink of collapse.”