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Pakistan approves policy for trucking industry

ISLAMABAD — The government has approved a truck policy aimed at reforming and promoting an integrated, ensuring and sustainable modernisation of the trucking sector.

Prepared by the Ministry of Industries, Production and Special Initiatives, Engineering Board as part of the National Trade Corridor Improvement Programme (NICIP), the truck policy was approved by the Economic Coordination Committee (ECC) of the federal cabinet in its meeting yesterday.

Official sources said that a holistic approach has been adopted by addressing all related cross sectional and cross cutting subjects after excessive consultations with stakeholders for the last one and half year.

The policy was approved in principal and the trucking was declared as an industry to facilitate truck fleet operators to get lending from commercial banks at competitive rates. They will also be granted insurance cover, tax incentives, and utilities at industrial rates instead of commercial rates to attract much needed foreign investment.

ECC has directed EDB to consult Finance Ministry regarding additional proposed incentives including allocation of dedicated funding by State Bank of Pakistan / IFI's – 50 per cent markup to be picked up by the government, withdrawal of 1 per cent Federal Insurance Fee and 5 per cent Federal Excise Duty (FED) on gross premium, investment tax credit allowance at the rate of 15 per cent to fleet operators and National Freight and Logistics Chamber (NFLC).

A new Motor Vehicle Registration System (MVRS) will be introduced to facilitate inter provincial reconciliation, connectivity, harmonisation, integration and consolidation of existing provincial registration systems. Federal Central Data Repository (CDR) will be created for the provincial registration system to become integrated more accurate, reliable and interactive without infringing on provincial domains. Ministry of Communication through NADRA will develop CDR and Federal CDR will be residing at NADRA.

ECC was informed that Ministry of Communication has already established 40 weigh bridges for axle load management. A uniformed force of 800 people will be built to operate these. Prime Minister directed Finance Ministry to reconsider the case submitted by Ministry of Communication.

The trucking policy introduces an effective drivers training and licensing system containing re-training and re-licensing of the existing population of drivers. It encourages establishment of accredited well equipped drivers training schools to cater to the modern day demands of driving on the National Trade Corridor. Besides public sector interested local OEMS, large fleet operators (Shell, Caltex, PSO etc) and NLC will be invited to contribute in this task of national importance.

Policy presents a concept of Trans Freight Stations (TFS) as a facilitation point outside the main cities to avoid congestion inside the cities. These will be dedicated, multi purpose parking and resting facilities for trucks and drivers.

Requisite support infrastructure like authorised workshops, service stations, storage facilities, MVE and MVR etc will also to be avail at these TFS.

These stations may be established by National Industrial Parks Development Management Company (NIPS) and managed through public-private partnership. At least one model TFS has been approved to be established in each provincial capital.

To streamline the trailer manufacturing activity in the country, separate registration of trailers has been made mandatory in the policy.

Non-registered Trailer Manufacturer in the informal sector will get registered with EDB as recognised manufacturer within next four years.

The Pakistan Standards of Quality Control Authority (PSQCA) will adopt and notify the National Standards and Specifications for Trucks, Trailers and Semi Trailers to harmonise with the international standards.