Thursday, 12 October 2017

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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

Daily

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Karachi, Thu October 12, 2017

KARACHI

MUBEEN HUSSAIN

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illions of rupees corruption in the National Bank of Pakistan (NBP) Customs House Branch jolts the ofMicers. According to the source, the mega scandal of fraud and corruption has surfaced in

the National Bank of Pakistan (NBP) Customs House Branch after which an investigation has started the Minding against the heinous crime. The sources informed Customs Today that some officers are involved in the mega corruption and embezzling the amount of customs duties as well as excise and taxation accounts of the National Bank of Pakistan Customs House branch. After the corruption sur-

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faced, an investigation team was constituted and the investigation team in its initial report has revealed that 14 bank ofMicers as well as more than ten clearing and shipping agents are involved in it, the source said. The investigation team in its initial report has also revealed that from the count of customs duty more than Rs 28 million and from the account of the excise duty more than Rs 15 million have been embezzled.

Millions of rupees corruption detected through WeBOC system

Hyderabad ASO seizes 200 NDP smuggling cartons of Iranian juice

‘FBR achieves first quarter targets for financial year 2017-18’

Sri L anka a rrests two over hacking of Taiwan bank accounts

Gwadar Customs seizes huge quantity of Indian silk, dish antennas

Millions of rupees corruption in the NBP Customs House Branch jolts the officers | SEE PAGE 01 |

Hyderabad ASO has confiscated foreign origin NDP 200 smuggling cartons | SEE PAGE 02 |

FBR Chairman said that the board achieved the targets up to Rs 3,368b | SEE PAGE 05 |

Two people have been arrested in S Lanka for suspected money laundering | SEE PAGE 07 |

The Customs Gwadar seized a huge quantity of Indian silk fabrics and dish | SEE PAGE 08 |


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UAB BBIA shows unsatisfactory revenue collection target Thursday, October 12, 2017

National

PESHAWAR: The Unaccompanied Baggage (UAB) of the Benazir Bhutto International Airport Islamabad earned Rs0.19million of Customs Duty (CD) during the first 24 days of September Financial Year (FY) 2017-18. According to details explained by sources of the UAB Islamabad that, during above said period, the UAB collected unsatisfactory revenue against the assigned proportional revenue target of Rs0.58million. The sources added that the UAB was allocated Rs0.75million as CD for the whole month of September FY17-18.

Hyderabad ASO seizes 200 NDP smuggling cartons of Iranian juice

SIALKOT

HYDERABAD

ZAFAR MALIK

ASLAM ANJUM QURESHI

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unjab Revenue Authority (PRA) has issued the recovery notices to as many as 500 big defaulters including government and private educational institutions, industrial and trade organizations, ceramics factories, construction companies, beauty parlors, travel agencies , marble factories catering companies, doctors, private clinics, hospitals , hotels, restaurants , property dealers, goods transporters and housing societies in Gujranwala Division for the recovery of Rs500 million from them. Sources told Customs Today that the Chairman PRA Punjab Dr. Rahil Ahmed Sadiqui had issued the official recovery target of Rs500 million from these defaulters in Gujranwala for the first quarter of the running fiscal year, as this target was 250 percent high than the last year’s official target, in this regard. Out of this Rs500 million official target, the PRA special recovery teams have yet recovered Rs235 million from defaulters in Gujranwala division’s all the six Sialkot, Narowal, Gujrat, Mandi Bahauddin, Hafizabad and Gujranwala districts here.

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he Anti-Smuggling Organization Hyderabad has conMiscated foreign origin nonduty-paid 200 smuggling cartons, each containing 4800 tin packs of Rani Juice, worth Rs240000 involving duties and taxes of Rs139440 during an action near check-post Dera More during the last week of September 2017-18. The smuggling item was being transported from Iran into Pakistan. Following strict instructions by Hyderabad Customs Collector Akhlaq Ahmad Khattaq, ASO team conducted various anti-smuggling activities to protect the national exchequer. The team, headed by Additional Collector Customs Hyderabad Dr Aamer Nawaz Hamid, constituted a raiding party comprising Inspector ZulMiqar Jamali, In-charge Customs Check-Post, Dera More and Inspectors, Sepoys, Drivers and other staff. The team intercepted a vehicle near customs check-post and recovered above said crates of Rani Juice. The market value of the item is Rs379440 including duties and taxes. Prior to the recovery, ofMicials asked the driver to produce any legal document about the possession of the item, but he was unable to produce anything legal, so the consignment was seized. A case was registered and an in-

PRA issues recovery notices to 500 big defaulters

vestigation was also started. After making a seizure report, the team deposited the impounded cartons into the Sukkur State Warehouse. OfMicials said vigilance has been enhanced against the smuggling of vehicles on roads. Meanwhile, The Collectorate of the MCC Hyderabad Customs Preventive Sukkur has seized smuggling of Non-Duty-Paid 21 cartons of foreign origin veterinary medicines

including injections/tablets worth Rs05.4million including duty and taxes during an action at customs check-post Jacobabad during the month of September 2017-18. Model Customs Collectorate Collector Akhlaq Ahmad Khattaq received a tip-off regarding the transportation of smuggling goods items. He constituted a team of Anti-Smuggling Organization (ASO), Customs Preventive, to prevent the smug-

gling. The team, under the supervision of Customs Preventive Additional Collector Aamer Nawaz Hamid comprising of In-Charge check-post Inspector Aziz Katpar and other Inspectors, sepoys and a driver, took part in the action. The team intercepted a vehicle near check-post Jacobabad and recovered the abovementioned smuggling Non-Duty-Paid veterinary medicines.

Amount transfer to provinces increase by 37% to Rs570b in 1Q

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ISLAMABAD

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wing to the higher tax collections, the amount transferred by the federal government to the provinces has increased substantially by over 37 percent during the Mirst quarter of the current Miscal year (2017-18). The federal government transferred an amount of Rs570 billion, including arrears, to the provinces

during the current Miscal year compared to the transfers of Rs416 billion during last year, according to latest data. The revenue collections during the Mirst quarter of the current Miscal year increased to Rs765 billion, showing robust growth of over 20 percent over the same period of last Miscal year. Finance Minister Senator Mohammad Ishaq Dar, while reviewing the Miscal performance during a meeting held here, expressed satisfaction over the growth in revenue, collections by the FBR

and appreciated the measures taken to achieve Miscal prudence in the Mirst quarter. Secretary Finance Shahid Mehmood briefed the meeting that as against total expenditure of Rs 914 billion in the Mirst quarter last year, the federal government spent Rs 894 billion in the Mirst quarter this year, despite the fact that increased investments were carried out through the development budget. The overall budget deMicit was recorded at Rs 324 billion in the Mirst quarter this year as com-

pared to Rs 438 billion in the same period last year, which was made possible through robust tax collections and lower expenditure. In terms of Gross Domestic Product (GDP), the overall deMicit decreased to 0.9 per cent during the period under review as compared to 1.3 per cent last year. “Reduced Miscal deMicit means lower public debt accumulation which supports alignment to targets deMined in the amended Fiscal Responsibility and Debt Limitations Act,” the secretary said. On the occasion, Ishaq Dar

reiterated the government’s resolve to continue Miscal discipline and directed ofMicials to ensure achievement of Miscal targets in the remaining three quarters of the current Miscal year. Commending inMlation containment, low interest rates, positive and strong growth in large-scale manufacturing, recent increase in exports and remittances, the Minance minister stressed the need to maintain focus on acceleration of economic growth for continued reduction in unemployment and poverty.


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Thursday, October 12, 2017

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ISLAMABAD M ARSHAD www.customsbulletin.com

ederal Board of Revenue (FBR) Chairman Tariq Mahmood Pasha said on Monday that the board achieved the targets up to Rs 3,368 billion during the last Miscal year and also achieved its Mirst quarter targets for the year 2017-18. BrieMing the National Assembly Standing Committee on Finance, Revenue here, Pasha said that the FBR had already taken action in matter pertaining to legal / illegal transfer of money in real estate sector of the United Arab Emirates by Pakistanis and sent a letter to the department concerned in Dubai for investigating into the matter. He added that a model agreement in this regard was under process, which would be signed shortly Pasha admitted that anomalies in certain areas existed and assured the committee that necessary action would be taken in next two or three weeks to rectify these anomalies with the consultation of stakeholders. It was also pointed out by the real estate stakeholders that those investors, who used banking channels for real estate transactions up to full market value of property were facing harassment from

various government departments. However, the chairman stated that such harassment, if any, will not be allowed in real estate transaction for the better interest of the investors. The committee recommended that upper limit should be removed, which was imposed in Income Tax Act, 2016 (Section 236-W). The Committee appreciated the role of Chairman FBR in this regard. The acting chairman SECP briefed the committee about the current situation in stock market. He said being a regulator SECP was closely watching the situation in market by protecting the investors. NA committee met here with Qaiser Ahmad Sheikh in the chair and discussed the matter pertaining to legal / illegal transfer of investment in real estate sector of United Arab Emirates (UAE) by the Pakistanis. A member of the committee reiterated that $8 billion has been transferred in UAE by the Pakistani residents or overseas Pakistanis. The committee decided to constitute a 3-members sub-committee under the convenership of Dr. Shezra Mansab Ali Khan Kharral, MNA, to look into the said issue. While considering the matter regarding the issues being faced by real estate sector, it was pointed out by the chairman, ABAD and President Pakistan Real Invest-

assured that it would be decided on priority basis. The president, NBP informed the Committee about the financial impact, workout by the Actuaries of Pension Scheme up till 31st December, 2016, which was Rs. 47.7 billion including in service beneficiaries as well as retired employees of the Bank. He further informed that impact of the court decision will also have adverse effect on the foreign operation of the Bank. He added the Bank was also planning for opening a branch in China and for this purpose Bank should be equivalent to $ 5 billion (PKR 1.6 trillion). However, the revised ratio will not be able to meet the stated minimum leverage ratio and CAR requirements. He also informed the committee that bank has decided to file review petition in this regard. The committee members have shown their concerns on the policies of the NBP, n si malie however, appreciated o n a t d e d tha r e the role of present u t s t i s a adm ed and management for t s Pasha i x y e r essa reas c a putting their efe n n i t a ha cert t two forts to make the ittee t x e m n m n o en i k the c things on right dia t e e s ould b ify the rections. tion w o rect

ment Forum (PREIF) that certain anomalies have existed in the valuation of immovable property in various areas of Pakistan. They were of the view that said anomalies were hindering genuine real estate transactions. The deputy governor State Bank of Pakistan briefed the Committee about the process of LC between Pakistan and Iran. He said that cabinet has already approved the matter, however, the delay was at the part of Government of Iran. The Committee directed to expedite the matter for the better interest of the country. The deputy governor SBP

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t weeks ltation e e r h consu t e or h t ith alies w ders anom kehol of sta

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EDITORIAL

Widening trade deficit

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he State Bank of Pakistan expressed optimism about the economic progress of the country last week, but independent economists believe the recent increase in oil prices in the international market, depleting foreign exchange reserves and pressures on the government to devalue rupee could pose serious threats to the national economy. The bank, in its report last week, had expressed the hope that the government would achieve the growth target of 6 percent in the fiscal year 2018.The State Bank has maintained the key interest rate at 5.75 percent for the next two months on the ground that inflation will remain below 6 percent during the current fiscal year. However, economists agree that the country would achieve 5.6 percent growth in the Gross Domestic Product (GDP) during the current fiscal year but growing concerns about the external account also need to be resolved. The oil prices in the international market have increased by $10 per barrel to stay at $51.5 per barrel, putting pressure on the countries like Pakistan.The government has already increased oil prices, giving a severe blow not only to the general public but also to the industry. There is already a meagre attraction for foreign investment in the country due to lack of trust in the government policies. The increase in oil prices will increase the import bill of Pakistan where the dependence on oil has tremendously gone up due to car purchasing spree in the country. Economists fear that increase in the oil import bill will also have its share of pressure on the balance of payment problem. The country is already seeking loans from the international donor agencies for debt servicing and so far failed to generate income to pay the foreign loans. It is feared that the current account deficit will appear in the form of crisis during the third quarter of the current fiscal year and the government may be forced to re-negotiate a bailout package with the IMF. On the political front, the government and the opposition parties are fighting for their survival and are least concerned about the economy of the country. According to an estimate, the current account deficit will reach $16-16.5 billion during the current fiscal year and at least $77.5 billion will be required for debt servicing in a situation where foreign exchange reserves are below $14 billion.

Potentials of agriculture sector A

LAHORE

DR AFTAB AFZAL

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ccording to newspaper reports, Prime Minister Shahid Khaqan Abbasi has stressed the need for establishing public and private partnership to strengthen and promote agriculture sector. In the view of growing population, which has increased by 57 percent since the last census held in 1999, the country needs assurance of food security which could only be achieved if the farming sector is improved. The United Nations has already kept Pakistan in the group of countries which are threatened by food scarcity in the coming

years. Meanwhile, the country has acquired the position of the fifth most populated country in the world from sixth position in nearly two decades. The agriculture is the most neglected sector in the country despite the fact that Pakistan is labelled as the agrarian economy. The small land owners hardly make both ends meet due to shrinking of land and most of them still use old methods of cultivation. More work and little yield always keep them in the lower income groups. The big land owners have more interest in other things than agriculture as most of them have already shifted to the posh localities of cities and land is just is a matter

of pride and not a main source of income for them. In his meeting with farmers, the prime minister has discussed a host of issues relating to the agriculture sector, including cost of production, methods to improve per acre yield and market ability of the agricultural products which sometime perish in the fields due to low sale prices in the market. The agriculture sector has vast export potentials and there is a need to explore new opportunities under the China-Pakistan Economic Corridor. As water is depleting in rivers, the farmers have to rely on artificial methods of irrigation but electricity is in short supply and expensive.

This renders the agriculture produces uncompetitive in the international markets. Though the government has its share of responsibility to boost the agriculture sector, but the farming community should also take initiatives to improve the situation. Despite the fact that the corporate sector has various evils, still it has merits and can play a vital role in the development of agriculture sector and contribute toward economic growth. It is all about the matter of priorities. The agriculture sector alone can push the country into the first world economies, but prudent policies, commitment and management are the basic factors to achieve the goals.


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Hong Kong world’s sixth most competitive economy Thursday October 12, 2017

World

HONG KONG: Hong Kong has been ranked the sixth most competitive economy in the latest World Economic Forum report on global competitiveness, three places higher than last year, hk01.com reports. However, the city dropped to 13th place from 8th in terms of judicial independence. On government transparency, Hong Kong ranked sixth, its worst in 10 years, Apple Daily reported. For the overall ranking, Switzerland remained on top for the sixth straight year, with the United States and Singapore in second and third place respectively. The Netherlands ranked fourth, followed by Germany. Completing the top 10 were Sweden, seventh; the United Kingdom, eighth; Japan, ninth; and Finland, 10th. China climbed one rung up to 27th, while Taiwan dropped one notch to 15th.

SLanka arrests two over hacking 90,000 tonnes of fuel imported ‘illegally’ of Taiwan bank accounts KABUL

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COLOMBO

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wo people have been arrested in Sri Lanka for suspected money laundering from a Taiwanese bank whose computer system was hacked to enable illicit transactions abroad, police said. Police acted after state-owned Bank of Ceylon reported a suspicious transfer into one of its accounts of $1.2 million from Taiwan Far Eastern Bank, following by a withdrawal of some of the money by one of the suspects. “We arrested on a tip-off from the Bank of Ceylon that there had been a suspicious transaction,” Shani Abeywardana, director at the police criminal investigations division (CID), told Reuters. “From the investigations and questioning we’ve found out that this is connected to hacking in Taiwan,” Abeywardana said.

Dhaka’s holding tax mess harasses house owners any of Dhaka city’s house owners have complained that authorities have recently raised holding tax up to 11 times, causing much trouble to them. As the city corporation officials have in recent times revised the holding tax applicable for house owners, a serious mismatch in assessment has come to the surface. House owners have alleged a section of officials demanded bribe to ‘rationalise’ their holding tax after they made upward revision. Abdul Matin, a house owner in North Mugdha, paid holding amounting Tk 9,200 during the last financial year. “Dhaka South City Corporation, in a letter dated 2 September, asked me to pay Tk 98,260 this fiscal year,” Matin told Prothom Alo. Matin’s son Abdur Rashid said their house was built in 1976. –CB Report

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OfMicials from Taiwan Far Eastern Bank were not immediately available for comment. Focus Taiwan, the English-language news website of Taiwan’s Central News Agency (CNA), said on Saturday Far Eastern Bank had reported to Taiwan’s Minancial watchdog that its computer system had been infected with malware. “Through the planted malware, hackers conducted virtual transactions to move funds totaling nearly $60 mil-

lion from Far Eastern Bank customers’ accounts to some foreign destinations such as Sri Lanka, Cambodia and the United States, the bank found on Tuesday,” Focus Taiwan’s website said. A spelling mistake in an online bank transfer instruction discovered by a Sri Lankan bank helped prevent a nearly $1 billion heist early last year involving the Bangladesh central bank and the New York Federal Reserve.

French telecom group Orange will launch an online banking service on 2 Nov

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rench telecoms group Orange plans to launch an online banking service on 2 November as it seeks to add another source of revenue to its core services. The move highlights the heightened competition in retail Minancial services, with mobile telecoms network operators seeing increased smartphone ownership and reduced use of bank branches as an opportunity to compete with traditional lenders. The

company had originally scheduled the launch of Orange Bank on July 6 but then postponed, citing the need to “extend and broaden the test phase”. “The commercial launch will take place on 2 November,” said the spokesman, conMirming an earlier report by French newspaper La Tribune. Orange Bank is to offer its customers use of an instant, secure mobile payment service as well as a free debit card. –CB Report

he Fuel and Gas Importers Union claims that fuel worth over $1 billion USD has been imported without taxes and customs duties being paid. Expressing concern over an increase in the smuggling of fuel into the country, the Fuel and Gas Importers Union said thousands of tons of fuel and gas is being brought in illegally. The union said fuel worth $1.6 billion USD was imported from Iran legally in the past six months but according to Iranian customs statistics they exported almost $2.6 billion USD. The union accused a number of government officials of being involved in the smuggling of fuel and that they allow companies to import thousands of tons without paying the required duties.

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“There is evidence that shows an official who was appointed at a customs office was linked to one government official and when a complaint was lodged against him, he was not fired; instead he was appointed to a higher post,” said Azrakhsh Hafezi, head of the union. “Iranian officials say they exported fuel worth $2.572 billion USD to Afghanistan so far this (solar) year but $1.6 billion USD of the fuel has been declared and the remaining is undeclared,” he said. “The petrol fuel has a high market (in Afghanistan), for instance, at least 100,000 tons of fuel was imported from Turkmenistan to Afghanistan in the past six months but if you assess, you will see that 90,000 tons of the fuel is not registered and 10,000 tons of the fuel might have arrived in Afghanistan,” said Abdul Hadi Nijrabi, a fuel importer. However, the Ministry of Commerce has rejected the allegations.

No income or sales tax raise: PM rime Minister Hani Mulki on said that the government will not reduce the income exemptions to individuals or families, and will not raise sales tax. He stressed that the government is committed to His Majesty King Abdullah’s directives to protect the middle- and low-income segments of Jordanians. During his meeting with Senate President Faisal Fayez and Lower House Speaker Atef Tarawneh, Mulki stressed that the amendments on the Income Tax Law will not affect single individuals or families whose income is below JD12,000

and JD24,000 respectively. He said that the amendments are introduced to improve the efMiciency of tax collection and harshen penalties for tax evasion. It also aims to ensure that all individuals whose yearly income exceeds JD12,000 and families with income more than JD24,000 are registered as tax payers. The premiere stressed that “it’s not acceptable that non-Jordanians beneMit from tax exemptions. This harms Jordanian economy and citizens, given that one third of the Kingdom’s population are non-Jordanians”. –CB Report

Young Swiss socialists campaign for higher taxes on rich

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SWITZERLAND

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he youth wing of the Swiss Socialist Party on Wednesday launched their new popular initiative aiming to impose higher taxes on capital-rich people in Switzerland. The so-called ‘99%’ initiative, which must now gain the required 100,000

signatures before it can be put to a referendum, targets the super-rich one percent who do not work but derive all their income from their Minancial assets. Under the slogan ‘money doesn’t work, we do’, the initiative proposes higher taxes on revenue derived from capital over a Mixed amount. Taxable interest, dividends and rental income totalling over 100,000 francs a year should be multiplied by

150 percent for tax purposes, say the young socialists. Such a system would bring in an additional Mive to ten billion francs to Swiss government coffers, says the youth party, which could allow the government to reduce taxes for those on low or middle incomes, or offer them other beneMits such as exemption from health insurance premiums or free childcare. Ahead of launching their campaign for signa-

tures, on Tuesday the Young Socialists staged a demonstration outside the house of Swiss People’s Party (SVP) MP Magdalena Martullo-Blocher, the daughter of former SVP leader Christoph Blocher. Speaking to 20 Minuten, Young Socialist president Tamara Funiciello said MartulloBlocher’s house had been chosen because she was a “symbol of the super-rich” and “swims in money.


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“Air Sial” to become fully operational by January 2018 SIALKOT: The Sialkot exporters’ own private airline namely “Air Sial” will become fully operational by starting its regular domestic passenger flights within the country in January 2018. Chairman “Air Sial” airline Fazal Jillani disclosed this in a press release issued here on Tuesday. He said that the trendy Sialkot exporters have established their own private airline “Air Sial” on self help basis after successfully completing the mega project of establishing Sialkot international airport at Sialkot on self help basis.

Thursday, October 12, 2017

CUSTOMS BULLETIN

Gwadar Customs seizes huge quantity of Indian silk, dish antennas GWADAR WAQAR AHMED ANSARI www.customsbulletin.com

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he Customs Collectorate Gwadar seized a huge quantity of Indian silk fabrics and dish antenna in a raid conducted. Sources told Customs Today that Deputy Collector Gwadar Junaid Mehmood constituted a team of Customs Anti-Smuggling Organization (ASO) under the supervision of Customs Preventive Inspector Dildar Yousuf who is newly transferred from Hyderabad. The team, during a search operation, intercepted a truck bearing registration no: BLL-345 which was going to Mirpurkhas and Hyderabad. During the search operation, the customs team found 5,000 meters of Indian silk fabrics and 25 dish antenna decorators and cable accessories like screw, nut bolts and other things worth Rs 4.1 million. The customs team registered an FIR against the accused persons and started investigations. Sources said this is the second raid of Gwadar Customs during the month of October. Earlier Customs Collectorate Gwadar conMiscated a large number of imported laptops, non-duty-paid

perfumes, imported watches and digital cameras valued at Rs3.66mil-

lion. Deputy Collector Gwadar Junaid Mehmood said we are work-

ing against smugglers and smuggling and, during the month of Oc-

tober, our teams will show outstanding performance.

ADP to provide Rs42.5 billion to KP for Metro Bus project PESHAWAR

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pecial Assistant to the Chief Minister for Transport, Malik Shah Muhammad Wazir said here Monday that Asian Development Bank (ADP) will provide about Rs42.5 billion to the KP government for construction of the much-awaited Bus Rapid Transit (BRT) commonly known

as Metro Bus in Peshawar. The CM special assistant said all paper works for this mega project has been completed and construction work on it would commence this month. “Completion of BRT before June 2018 was a big challenge for KP Government and all efforts would be made to complete it before end of current Govt’s tenure,” he said. “It is 50billion project in which Rs42.5 billion would be provided by ADB and Rs7.5billon would be injected by the KP Government,” he said. He said about 450 state of the art air conditioned buses

would ply on road after completion of 26 kilometree BRT’s route from Chamkani to Phase V Hayatabad, adding 64 kilometre approach roads were also part of this mega plan. The execution plan of BRT has been approved by the Chief Minister for timely completion of the project that would help resolve all trafMic congestions and problems in Peshawar. The BRT’s corridor will be around 26 kilometre long with 15 kilometre street level stretch, six kilometre long elevated portion and Mive kilometre tunnels. The BRT will have 32 stations, two depots, 68 kilo-

metre feeder bus routes, 150 bus stops, 450 buses, six storied parking plaza and 61 acres of commercial plaza. Malik Shah Muhammad said the project will be completed in a short possible time with an aim to introduce a well-designed, comfortable and user-friendly public transport and provide commuters with a reliable, safe, affordable and high quality bus rapid transit service in the provincial capital. Terming it a gift of KP Government for people of Peshawar, he said, it would save the time and money of passengers coming to Peshawar from other districts in

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large number by providing them quality transport services. To a question about unchecked rent a cars and private driving schools business in Peshawar sucking blood of innocent people, Malik Shah Muhammad said the government was well aware of these issues and was making concrete efforts to bring these business under tax-net. The CM special assistant said efforts were underway to establish a Regularity Authority in Peshawar to regulate and streamline rent a cars and private driving schools business in the province.


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