Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. It can be generally defined as the set of interconnected structural elements that provide framework supporting an entire structure of development. It is an important term for evaluating a country or region’s development. Infrastructure plays a pivotal role in the development and is a major contributor to growth of a country. A strong efficient and affordable infrastructure is critical element of good investment climate and therefore is precondition to sustain the growth momentum. High growth in recent years is increasing pressure on existing infrastructure in Pakistan needs heavy investment in physical infrastructure to improve delivery of services and to enhance its internal and global competitiveness. Pakistan has experience in attracting private sector investment in energy and telecommunications. Investment infrastructure required in sectors like; energy, roads, transportation & logistics, solid waste management, food security and water.

2. Introduction

2.1 An Overview of Pakistan’s Infrastructural situation

At the time of partition in Independence, Pakistan got almost a waste land and most of the developed areas came under the territory of India. So, Pakistan had to work for primary foundation of infrastructure. The comparatively poor infrastructural situation of Pakistan by international standards has severe effect on the lives of people. The electricity shortages, lack of proper water and sanitation provisions. Above all, increase of population to an alarming level is making our problems worse. The Government of Pakistan and its people face an uphill battle against poor infrastructure. According to the World Economic Forum Survey (2006-07) of 125 countries, Pakistan ranked 67th in basic infrastructure category. Historically, a continual imbalance between demand and supply of infrastructure facilities is seen. In The Global Competitiveness Report (GCR) 2012-2013, released by the World Economic Forum, Pakistan is graded among bottom 20 of the 144 economies around the world. Pakistan lacks a long-term view of competitiveness in accordance with this report.

Pakistan: Economic Indicators

3.1 Transport sector:

Pakistan with a population of 170 million has a reasonably developed transport infrastructure. The transport and communications sector accounts for about 10.0 percent of the country’s GDP, and 22.0 percent of Gross Fixed Capital Formation in FY07/08. It provides over 2.3 million jobs in the country (6% of all employment) and receives 12-15 percent of funds from the annual Federal Public Sector Development Program (PSDP). Apart from being a significantly large source of budgetary expenditure, the transportation sector imposes huge demand on Pakistan’s energy supply, absorbing approximately 35% of total energy annually.

• Road transport acts as a backbone of Pakistan’s transport system. About 80 percent of Pakistan’s total traffic is being carried by 9,574 km long National Highway and Motorway network which accounts 3.65 percent of the total road network. Road traffic (both passenger and freight) has grown significantly faster than the national economy over the last decade. Currently, it is accounting for 91 percent of national passenger traffic and 96 percent of freight.

• Port traffic in Pakistan grows at 8 percent annually in recent years. About 95 percent of all international trade is being handled through two major ports (i.e. Port Karachi and Port Qasim). Port Gwadar, being operated by Singapore Port Authority, is aiming to develop into a central energy port in the region. 14 dry ports provide high value external trade.