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
Video: Who’s Getting a Tariff Refund?
new video loaded: Who’s Getting a Tariff Refund?

By Tony Romm, Nour Idriss, Stephanie Swart, Whitney Shefte and Paul Abowd
April 24, 2026
Business
Hair oil, ACs, soaps become costlier: How FMCG companies are dealing with Middle East supply blow – The Times of India
Consumer goods companies in India are facing a sharp rise in input costs due to the ongoing war in the Middle East. Surging raw material prices are forcing firms to track costs on a near-daily basis, review pricing frequently, and focus on short-term decisions instead of long-term planning.As firms are struggling with volatile input costs, company executives have told ET that the sudden spike in inflation has made it harder to manage business, while also raising concerns that higher prices could hurt consumer demand. This comes at a time when consumption had started improving after the government reduced goods and services tax rates on several products last September.Havells India chief executive officer Anil Rai Gupta was cited by the financial agency as saying that the company is taking a cautious approach and reviewing the situation month by month. “I have not seen this kind of price escalation in the recent past or in recent memory. Usually, inflation happens, but it is neither so steep nor spread across all product categories… consumer offtake can get affected if the price hike is too sharp.” Bajaj Consumer Care managing director Naveen Pandey said the company is closely tracking input costs and taking decisions almost daily. Speaking during the company’s earnings call last week, he said costs across the business have gone up between 20% and 60%. He added that the war has created “extreme volatility” in the prices of light liquid paraffin and packaging materials. At the same time, prices of mustard and copra have not fallen as expected and are still at pre-war levels. The company is working on cutting costs across its operations.Industry executives said the war has pushed up commodity prices and crude-linked products, increased freight costs, and made imports more expensive due to the fall in rupee. They added that even after a ceasefire, prices have not come down, and uncertainty remains over whether the conflict could start again.In the past month, companies have already raised prices in several categories, including air-conditioners, refrigerators, soaps, detergents, hair oil, apparel, decorative paints and footwear. Some companies have also reduced pack sizes to deal with higher costs. More price hikes are expected by the end of this month.Parle Products vice president Mayank Shah said the pressure on input costs is very high and the uncertainty is “killing”.Retailers are also seeing more careful spending. Trent Ltd, which runs Westside and Zudio stores, said in an investor presentation that while demand was steady at the start of the January–March quarter, the current situation is affecting consumer behaviour.“Consumers are spending with caution, resulting in moderation of discretionary spending on the back of continuing macro uncertainties and potential increase in cost of living. Structurally the demand levels and the underlying market opportunities remain strong. However, the duration and intensity of disruptions in the Middle East along with its second order effect on supply chain, commodity prices and inflation in general has potential implications for near term demand,” the company said.AWL Agri Business executive deputy chairman Angshu Mallick said the company has already increased edible oil prices by Rs 7–10 per kg to pass on higher freight costs. “Being a staples company, we hike or reduce prices immediately. As we are in basic necessities, the volume impact is usually lower,” he said.Meanwhile, the Middle East conflict is inching closer towards the two month mark. The conflict began back on February 28, when the US and Israel launched joint strikes on Iran. In retaliation, Tehran choked the crucial Strait of Hormuz, a pipeline that carries 20% of global energy supplies, straining flow across the globe.
Business
UK retail sales rebound as motorists stock up on fuel
UK retail sales returned to growth last month as they were pushed higher by motorists stocking up on fuel as prices shot higher because of the Iran war, according to official figures.
The Office for National Statistics (ONS) said the total volume of retail sales, which measures the quantity bought, rose by 0.7% in March.
It compared with a 0.6% fall in February, which was revised slightly lower.
The latest reading was also stronger than expected, with economists having predicted a 0.1% dip for the month.
Statisticians said March’s increase was particularly driven by a spike in demand for fuel, which saw sales volumes jump by 6.1% for the month, the highest level since April 2021.
They indicated that this was especially linked to a short period, of less than a week, of particularly elevated sales as unfolding geopolitical events in the Middle East caused a significant rise in prices at the pump.
The value of sales, the amount of money spent, for fuel was up 11.6% amid the jump in petrol and diesel prices.
Recent data from the RAC shows that petrol prices have risen by 18.5% to 157.34 pence per litre, as recorded on Wednesday.
Meanwhile, diesel is up 33.4% to an average of 189.88 pence per litre.
Elsewhere, clothing stores also had a strong month, with sales volumes across the category rising by 1.2% in March amid a boost from better weather conditions.
Technology retailers also saw sales grow after they benefited from new products launches.
However, food sales were weaker, slipping by 0.8% for the month.
The ONS said overall retail sales volumes are up 1.6% for the first three months of 2026, as the industry was also supported by positive growth in January.
ONS senior statistician Hannah Finselbach said: “Retail sales rose in the three months to March, with commercial art galleries doing well earlier in the quarter and sales in beauty products stores rising as retailers reported launching new collections.
“Motor fuel sales were up on the quarter, with retailers commenting that many motorists had been filling up their tanks in March following the start of conflict in the Middle East.”
Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said: “The first batch of hard data on consumers’ spending since the start of the Iran war was better than expected.
“Granted, stocking up on motor fuels drove headline sales higher, but even excluding petrol retail sales volumes nudged up showing that households largely brushed off the initial shock of higher energy prices.”
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