Work continues on ITTMS project, Rs 290 mln released so far

ISLAMABAD, May 13 (APP):The government has so far released an amount of Rs 290 million for the development of Integrated Transit Trade Management System (ITTMS) being developed under the Asian Development Bank (ADB) Regional Improving Border Service Project.

The project envisages establishment of state-of-the-art facilities at Wagah, Torkham and Chaman border crossing points, official sources said adding that once completed, it would enable significant reduction in processing times at the border crossing points.

“The project is of great strategic importance from both a security and trade point of view,” they added.

The government had earmarked Rs 840 million for the project under the Public Sector Development Programme (PSDP) for the fiscal year 2018-19, with foreign assistance of Rs 550 million, official sources said.

The total cost of the ITTMS project has been estimated at Rs 31,626.2 million which included the foreign exchange component of Rs 26049.7 million.

The project was approved by Executive Committee of National Economic Council (ECNEC) in September 2015.

Pakistan had a great importance in the region owing to its unique geostrategic position and all the potential to become the most preferred corridor for trade in South and Central Asia.
However, due to very weak and almost rudimentary trade related infrastructure, Pakistan had missed the opportunity to channel the trade from and to the landlocked neighboring countries and other emerging economies of the world, including China and India to become part of the massive global supply chain.

The ITTMS was being executed under Central Asia Regional Economic Cooperation-Regional Improving Border Services (CAREC-RIBS), the sources added.

The project would help upgrade the infrastructure at border crossing points, in the context of CAREC Corridor for trade to support a modern supply chain.

The project included development of one-window ICT based systems and procedures. The cargo movement from and to Karachi going upcountry for internal consumption within the country or for transit movement destined to exit from Chamman, Torkham and Wagha would be processed and routed through an integrated system to reduce dwell time for cargo clearance and onward dispatch.

It would ensure proper exit of outbound cargo, keeping check on the backward flow of goods, decrease incidence of smuggling for keeping a strict check on passengers’ baggage, pave the way for one-window operations at country and regional level and pave way for introduction of Authorized Economic Operators.

It is pertinent to mention here that Federal Board of Revenue (FBR) is an executing agency and a project management unit has been established at the FBR which would act as project owner.

It has been providing guidance and oversight to the overall implementation and performance of the project.

Meanwhile, the government has so far released Rs 722.7 million for various ongoing and new projects of Revenue Division under the Public Sector Development Programme (PSDP) for the current fiscal year (2018-19).

The government, in its Federal PSDP, had earmarked Rs 1470.2 million for the Revenue Division projects, with foreign exchange component of Rs 552 million, according to the latest data released by of Ministry of Planning, Development and Reform.

An amount of Rs 160 million have been released for establishment of Inland Revenue Offices in Pakistan for which the same amount was earmarked in the current PSDP.

The government released Rs 40 million out of Rs 80 million for construction of Regional Tax Office (RTO) at Islamabad while Rs 30 million have been released for construction of Model Customs Collectorate at Gwadar for which an amount of Rs 50 million have been earmarked.

An amount of Rs 17.1 million has been released for purchase of land for establishing Directorate of Transit Trade at Gilgit for China Pakistan Economic Corridor (CPEC) Trade Facilitation for which Rs 28.5 million have been earmarked in the current PSDP.

The government also released Rs 15 for construction of warehouse for Model Customs Collectorate at Khokar Niaz Baig Lahore for which Rs 45 million have been allocated this year.

An amount of Rs 30 million have been released for construction of additional office block for Model Customs Collectorate at Hyderabad.

The federal government has released Rs 564.2 billion for various ongoing and new social sector uplift projects under its Public Sector Development Programme (PSDP) 2018-19 as against the total allocation of Rs 675 billion.
Under its development program, the government has released an amount of Rs 22.66 billion for federal ministries, whereas Rs 22.9 billion for corporations and Rs 38.1 billion for special areas, according to a latest data released by Ministry of Planning, Development and Reform.

The Planning Commission of Pakistan follows the specific mechanism for release of funds. During first quarter (July-September), it releases 20 percent of development funds, in second quarter (October-December) 20 percent, third quarter (January-March) 30 per cent and fourth quarter (April-June) 30 percent.