Business
Pakistan must put rail before roads | The Express Tribune
KARACHI:
Pakistan has not one but two transport policies. The first, titled National Transport Policy of Pakistan 2018, was prepared by the Planning Commission. The second, the National Freight and Logistics Policy, was issued by the Ministry of Communications in 2020.
The first policy states that it “reflects the government of Pakistan’s aim to create a world-class transport sector.” The second offers up some more detail, “To drive economic growth and trade in Pakistan by increasing the country’s competitiveness through an integrated, seamless, efficient, reliable and cost-effective freight transport and logistics network, leveraging best in class technology, processes and manpower.”
These vision statements miss the point. What Pakistan needs is a transport sector that works for its people – all its people, rich and poor. It does not need it to be “world class” or leverage “best-in-class technology”.
Reading the policies themselves, one is struck by a strange disconnect: There is a complete absence or discussion of factors critical to the design and implementation of any transport system. These include demographics, population density and distribution, topology – particularly for intercity transport – per capita income, and income distribution.
Transport systems do not exist in a vacuum. There must be a full understanding of the enabling environment. Without this understanding and specific design objectives, what is likely to emerge is an unstructured, inefficient and largely dysfunctional mix of transport modes. And this, sadly, is what has happened in Pakistan.
Of particular concern is the way rail has been marginalised in favour of road transport. Over the years, many impressive multilane intercity highways have been built. Billions of rupees have been spent constructing them, and billions more are spent every year maintaining them.
Yet Pakistan does not publish an official median per capita income figure. Based on global income patterns and Pakistan’s GDP per capita – around $1,480 in 2024 and $1,820 in FY25 – the median income is likely in the range of $600 to $1,100 per year. In simple terms, even in a best-case scenario, half of Pakistan’s population lives on less than $1,100 annually.
How many of these people can buy a car to make use of our magnificent highways? A cynic would say, “Well, they can always take a bus.” And, indeed, this is what they are obliged to do. But here we run into another problem – the issue of cost, and in particular energy cost. Consider the following comparison between rail and road transport: Rail has a massive physics advantage: steel wheels on steel rails result in an extremely low rolling resistance.
A freight train requires less than one-third of the energy per tonne-kilometre compared to a truck. This is due to lower rolling resistance, better aerodynamics per unit of cargo, and the ability to move large volumes in a single consist. The same logic applies to intercity passenger rail, provided trains operate at high occupancy levels. Electrified rail systems (metros, suburban rail) are among the most energy-efficient passenger modes. Passenger buses and cars have higher per-passenger energy use unless operating at very high occupancy.
Rail also trumps road along other dimensions. Rail freight produces less than one-fifth of the greenhouse gas emissions of road freight per tonne-kilometre. Electric passenger rail systems again rank among the most efficient modes in terms of emissions.
Rail transport cost for freight can be higher than road on a per-shipment basis. But this is only the case when volumes are low. At high volumes, rail easily outcompetes road. The same argument applies to passenger transport costs. Operating costs per-passenger kilometre can only be lower when trains run at high occupancy.
Land usage in the case of rail is also much lower than road. The land needed for an up-and-down train track is a fraction of the land needed to build a dual-carriage six-lane highway. Not to mention the damage done to the environment and agriculture when forests and fields are replaced by six-lane highways.
Pakistan possesses all the characteristics that strongly favour rail over road. Almost all major cities and industrial activity lie along the Indus River basin. This basin, from Karachi to Peshawar, constitutes a natural high-density rail corridor, enabling the sort of volumes that make rail a better and cheaper alternative to road.
There is, of course, the issue of capital cost. In general, the cost per kilometre of rail is of the same order as road. Rail can be more expensive depending on other supporting infrastructure, such as stations and bridges that need to be designed to carry very heavy dynamic loads. Pakistan’s geography, demographics and economic realities all point clearly in one direction: rail should be the preferred mode of transportation. Yet, for some reason, we seem to have marginalised rail in favour of road transport.
A sensible transport policy would look very different. At the intra-city level, Pakistan’s cities are characterised by high population densities and generally low incomes. It is neither practical nor possible for everyone to own a car. Policy should, therefore, prioritise mass transit systems in all major cities. These systems would combine conventional rail, elevated rail, trams and buses. Trains should operate along high-density corridors, with trams and buses branching out to carry passengers to their final destinations.
Such systems would primarily be for people’s movement. Freight movement within cities would still have to rely mainly on trucks. And for this purpose, roads should be built to the proper standards. Trucks operating on public roads would have to comply with maximum axle load limits to prevent damage to the roads.
At the intercity level, the logic is even clearer. Given the low-income levels of most of our citizens, the only sensible system that can provide transport to most of our public at a reasonable price is rail. To this end, we need to upgrade, develop and expand our rail networks and systems to cover all major cities. Rail must be the primary mode of transportation between cities for both people and freight. The objective is to provide fast, convenient and frequent services between most urban centres.
The focus on road networks should mainly be on ‘farm to market’ or ‘farm to rail’ roads. These should be upgraded and built wherever traffic densities do not justify a rail link. Such roads are critical to our primarily agricultural economy since produce must be moved quickly to minimise loss and wastage.
Pakistan has spent enormous time and money building a road network that ultimately serves only a small minority. It is time now to put the needs of the vast majority – the poor – over the needs of the few.
The writer is chairman of Mustaqbil Pakistan and holds an MBA from Harvard Business School
Business
Gold steadies near record high as trade war risks sour global sentiment – SUCH TV
Gold and silver traded near record highs on Tuesday, as US President Donald Trump’s threats to acquire Greenland soured global sentiment and sparked a rush into safe-haven assets.
Spot gold was up 0.1% at $4,675.32 per ounce, as of 0336 GMT, after scaling an all-time high of $4,689.39 in the previous session.
US gold futures for February delivery climbed 1.9% to $4,680.30 per ounce.
Spot silver fell 1.4% to $93.33 an ounce, after hitting a record high of $94.72 earlier in the session.
“Gold is biding its time today and consolidating recent gains, with traders waiting to see what happens next regarding Trump’s latest spat with the EU over Greenland,” said Tim Waterer, KCM Trade’s chief market analyst.
“If Trump continues to turn the heat up regarding tariff threats, gold could feasibly be eying off a run north of $4,700 in the near term,” Waterer said, adding that if European Union leaders managed to patch things up with Trump at Davos this week, gold’s risk premium might fade.
Trump has intensified his push to wrest sovereignty over Greenland from fellow NATO member Denmark, prompting the European Union to weigh hitting back with its own measures.
The dollar retreated to its lowest in a week after tariff threats triggered a broad selloff across US stocks and government bonds.
Gold also found support as concerns lingered around the Federal Reserve’s independence with the US Supreme Court this week expected to hear a case around Trump’s attempt to fire Fed Governor Lisa Cook over alleged mortgage fraud.
The Fed is broadly expected to maintain interest rates at its January 27-28 meeting despite Trump’s calls for cuts.
Gold, which does not yield interest, typically performs well during periods of low interest rates.
Kelvin Wong, a senior market analyst at OANDA, expects the Fed to continue its rate-cut cycle into 2026, citing a sluggish labour market and lacklustre consumer sentiment, with the next reduction now being priced further down the calendar in either June or July.
Among other precious metals, spot platinum slid 1.8% to $2,331.20 an ounce, while palladium dropped 2% to $1,804.15.
Business
Asian stocks today: Markets trade mostly in red; Nikkei sheds 1%, HSI remains flat – The Times of India
Asian markets opened on a weak note on Tuesday, as most indices slipped into the red as investors reacted to trade tensions and political developments in Japan. In US, markets remained closed for the Martin Luther King Jr Day holiday.Hong Kong’s HSI was up 35 points to 26,599. Nikkei trimmed 519 points or 0.97% to 53,064. Shanghai and Shenzhen were down 0.12% and 0.89%, respectively. Meanwhile, Kospi was 0.36% up, trading at 4,922 at 11:30 am IST. Investors across the globe remained cautious after US President Donald Trump threatened to impose fresh tariffs on European imports, unsettling major trading partners that have significant investments in the United States. US stock futures fell sharply, tracking losses across European markets on Monday, while oil prices were steady. The announcement also triggered turbulence in Japan’s bond market. Government bond yields climbed rapidly after Takaichi indicated she would dissolve parliament to seek a stronger mandate, buoyed by high public approval ratings. She has also floated a proposal to temporarily suspend the food tax. Markets are increasingly concerned that a renewed mandate could lead to higher government spending, reigniting worries over Japan’s public finances. As a result, bond prices fell and yields jumped. The yield on the 40-year Japanese government bond rose to a record 4% on Tuesday, while yields on other long-term bonds surged to their highest levels in decades. Investors are now turning their attention to a busy week in the United States, which will feature more corporate earnings and fresh inflation data closely watched by the Federal Reserve. The US central bank meets in two weeks and is expected to keep its key interest rate unchanged as it balances signs of a slowing labour market against inflation that remains above its 2% target. Japan’s central bank is also set to conclude its policy meeting later this week.
Business
Greenland ‘will stay Greenland’, former Trump adviser declares
Faisal IslamEconomics editor
Getty ImagesOliver SmithBusiness producer, Davos
Donald Trump will not be able to force Greenland to change ownership, a former top adviser to the US president has told the BBC.
IBM’s vice chairman Gary Cohn, who advised Trump on the economy in his first term, said “Greenland will stay Greenland” and linked the need for access to critical minerals to his former boss’s plans for the territory.
Cohn is one of America’s top tech bosses, a leader in the race to develop AI and quantum computing, and served under Trump as director of the White House National Economic Council.
In a sign of how seriously business leaders are taking the crisis, he warned “invading an independent country that is part of Nato” would be “over the edge”.
He also suggested the president’s recent comments about Greenland “may be part of a negotiation”.
“I just came from a US congressional delegation meeting, and I think there’s pretty uniform consensus with both Republicans and Democrats that Greenland will stay Greenland”, he said.
Greenland would be happy for the US to increase its military presence on the island, he said, with the North Atlantic and Arctic Ocean “becoming much more of a military threat”.
The US could also negotiate an “offtake” agreement for Greenland’s vast yet largely untapped supplies of rare earth minerals, Cohn suggested.
“But I think, you know, invading a country that doesn’t want to be invaded – that’s part of a militaristic alliance, Nato – seems to me to be a little bit over the edge at this point”, he said.
Cohn indicated the president may be overstating his demands as part of a negotiating tactic – something he says the president has done successfully in the past.
“You’ve got to give Donald Trump some credit for the successes he’s had and he’s many times tried to overreach to get something in a compromise situation,” he said.
“He has overreached in advertising something to end up getting what he actually wants. Maybe what he actually wants is a larger military presence and an offtake.”
The start of this year’s World Economic Forum in the Swiss ski resort of Davos has been overshadowed by the president’s increasingly aggressive stance on the arctic territory, with many political and business leaders alarmed about the potential geopolitical and economic impact. Trump is due to address delegates at the gathering on Wednesday.
While Cohn expressed reservations about some of the president’s actions, he said the US administration had “various different motives” for what they were doing.
He said Trump’s decision to intervene in Venezuela was “a path” to disrupt the country’s relationship with China, the biggest market for its oil, as well as Russia and Cuba.
Cohn also thinks that the president has become increasingly focused on the importance of rare earth minerals, noting that “Greenland has quite a supply” of the resources.
Those minerals are critical to the development of Artificial Intelligence (AI) and quantum computing – also a major talking point in Davos.
US Treasury Secretary Scott Bessent on Monday hit back at claims Trump has blamed his escalating threats over Greenland on the fact he was not awarded the Nobel Peace Prize.
In a message to Norway’s Prime Minister Jonas Gahr Støre, Trump blamed the country for not giving him the prize and said he no longer feels obliged to think only of peace.
Bessent said: “I don’t know anything about the president’s letter to Norway, and I think it’s complete canard that the President will be doing this because of the Nobel Prize.
“The president is looking at Greenland as a strategic asset for the United States. We are not going to outsource our hemispheric security to anyone else.”
AI ‘to be part of every business’
Developments in quantum computing and AI are seen as critical not just for the US economy and productivity, but for US strategic influence in the world.
“IBM is dead centre in what’s going on in quantum today. We have the largest amount of quantum computers in use today” Cohn said, highlighting that his company has put many of these computers into use across America in firms from the banking industry to medicine.
“AI is going to be the backbone for data that feeds into quantum to solve problems we’ve never been able to solve”, he added.
“Where we’re heading is AI is going to be part of everyone’s enterprise. AI and quantum are going to be working in the enterprise behind the scenes to make every company more efficient. And we’re just at the beginning of that sort of long road, and that’s going to take probably another three to five years to get there.”
Earlier this month, Google, also a US company, told the BBC it had the world’s best-performing quantum computer. The race to develop the technology is the other key talking point – apart from Greenland – at the World Economic Forum.
-
Tech1 week agoNew Proposed Legislation Would Let Self-Driving Cars Operate in New York State
-
Entertainment7 days agoX (formerly Twitter) recovers after brief global outage affects thousands
-
Sports5 days agoPak-Australia T20 series tickets sale to begin tomorrow – SUCH TV
-
Fashion3 days agoBangladesh, Nepal agree to fast-track proposed PTA
-
Business4 days agoTrump’s proposed ban on buying single-family homes introduces uncertainty for family offices
-
Politics3 days agoSaudi King Salman leaves hospital after medical tests
-
Tech4 days agoMeta’s Layoffs Leave Supernatural Fitness Users in Mourning
-
Tech5 days agoTwo Thinking Machines Lab Cofounders Are Leaving to Rejoin OpenAI
