Loan-based initiative for public transport investors on the cards

Against 15pc upfront payment, new fleets of buses can start plying city’s roads

The Sindh government is introducing an initiative for public transport investors to help them bring out new fleets of buses to ply Karachi’s roads against the upfront payment of 15 per cent.

As the chief guest of the pre-launch ceremony of the ‘Shanghai Sunlong Bus’ project, Transport Minister Syed Nasir Hussain Shah said the investors could pay the remaining amount through a loan scheme.

Shah said the loan for buying new fleets of public buses would be offered by the Sindh Modaraba Management Limited or the Sindh Leasing Company Limited. “The scheme is being offered in view of the people facing difficulties as regards quality and fast public transport.”

He said the provincial government would arrange insurance coverage for the new fleets of buses and also share the financial burden of the prospective transporters to pay interest on the loans.

“The government plans to bring out more than 600 buses on different inter-city routes. The transport department will move a separate summary to bring out 200 large buses on intra-city routes.”

The minister said the under-construction bus rapid transit system would cover every area of the city, adding that the Metrobus services in Islamabad, Rawalpindi and Lahore covered only a few locations along the routes of the new bus service.

Other speakers that attended the ceremony included prominent figures from the business, industry and transport sectors. They urged the State Bank of Pakistan to order banks to offer a financial leasing facility for the public transport sector.

They said that like any other business, the public transport sector should also be covered by insurance companies so that investment in the sector could be made without the fear of suffering heavy financial losses in the event of an accident or a law and order situation.

Zubair Tufail, president of the Federation of Pakistan Chambers of Commerce & Industry, said a functional and adequate public transport system was desperately required by the major cities of Sindh, including Karachi.

“On the other hand, the government of the neighbouring Punjab province has been successful in evolving such a system for the residents of its main cities.”

Tufail said the situation in Karachi had become so unpleasant that many people were forced to endanger their lives on passenger buses and coaches after work due to insufficient seating capacities of the vehicles.

He said the prospective investors would be encouraged to launch a modern, fast and spacious bus service after being offered a viable and attractive leasing facility from the banks or leasing companies.

He added that they should be extended the facility of insurance coverage for their vehicles and staff. “This will ensure a viable business environment in the public transport sector.”

Abdul Sami Khan, chairman of the Pakistan Petroleum Dealers Association, said the age-old, rickety public buses had become a chronic and serious issue for cities such as Karachi and Hyderabad with no solution in sight.

He said viable incentives should be offered to the prospective investors to bring out new, large and comfortable buses to provide the maximum benefit to the commuters of the two cities.

Malik Khuda Bakhsh, chairman of the Malik Group of Companies, said his company had decided to import the modern Sunlong buses from China after successfully negotiating with the banks and leasing companies that the facilities of leasing and insurance coverage would be available to the prospective investors.