Pakistan Post in the Digital Age: Can It Keep Up with Private Couriers?

In today’s fast-paced digital economy, efficient and reliable courier services are essential for e-commerce growth. While private courier companies in Pakistan have embraced modern technology, offering fast deliveries, real-time tracking, and seamless digital payments, Pakistan Post continues to struggle with outdated systems and operational inefficiencies. As e-commerce expands, the question arises: In this digital age can Pakistan Post modernize its services to compete with private couriers?

Pakistan’s e-commerce sector is rapidly expanding, yet courier services currently hold only a 4-5% share in this growing market. This indicates a significant opportunity for Pakistan Post to increase its market presence by adopting modern technology and offering competitive services.

These insights were shared during a meeting of the Senate Standing Committee on Communications, chaired by Senator Pervaiz Rashid. The committee convened to review Pakistan Post’s financial performance, operational efficiency, and strategies to improve revenue generation in the ongoing fiscal year.

Pakistan Post in the Digital Age: Can It Keep Up with Private Couriers?

Officials briefed the committee that Pakistan Post earned Rs 9.2 billion in the last fiscal year. However, its total expenditures amounted to Rs27 billion, highlighting the financial strain on the organization. Salaries and allowances remain the highest expenses for the department. The Director General (DG) of Pakistan Post noted that managing employee-related costs is a key concern.

To address financial sustainability, Senator Talal Chaudhry suggested rightsizing Pakistan Post by reducing its workforce. The current number of employees stands at 22,388, with a proposed increase to 22,938 in the future. However, given the financial losses, some committee members recommended optimizing human resources to improve efficiency and reduce operational costs.

Need for Technological Upgrades

One of the major challenges Pakistan Post faces is its outdated infrastructure compared to private courier companies. Industry expert Safar Abdul Qadir emphasized that the growing e-commerce sector presents a valuable opportunity for Pakistan Post to expand its market share. However, without adopting modern tracking systems, digital payment solutions, and improved delivery mechanisms, it risks falling further behind competitors.

The committee highlighted the absence of a biometric attendance system, which has led to irregular work hours and reduced productivity among employees. Senator Jan Saifullah Khan pointed out that without proper monitoring, it becomes difficult to ensure accountability and efficiency. The DG acknowledged the issue and stressed the importance of implementing digital tracking systems.

Revenue Generation and Business Strategy

Pakistan Post has been tasked with generating Rs12 billion in revenue this fiscal year. So far, it has collected Rs5.7 billion, achieving 92% of its target for the previous year. To improve its financial outlook, the Special Investment Facilitation Council (SIFC) has been brought in to provide consultants who will assist in formulating a robust business plan. The Standing Committee has requested a detailed report on this strategy in the next meeting.

Additionally, Pakistan Post’s guest houses, which were once a source of revenue, have become a financial burden. Due to the lack of maintenance and the impact of the COVID-19 pandemic, they incurred a loss of Rs10 billion last year. Officials reported that basic upkeep, such as washing bed sheets, is also being neglected due to a lack of funds.

Regulatory Gaps and Future Reforms

The committee also addressed concerns regarding the lack of a regulatory body overseeing courier services in Pakistan. Currently, there is no mechanism in place to regulate service quality or handle consumer complaints. The committee members recommended setting up a dedicated regulator to ensure service standards and protect customer rights.

Furthermore, the Pakistan Post has faced additional setbacks due to financial regulations. Following restrictions imposed by the Financial Action Task Force (FATF), Pakistan Post’s banking operations were shut down. As a result, General Post Offices (GPOs) now rely on the Finance Division for operational expenses, further straining resources.

The Roadblocks to Pakistan Post’s Revival

Despite its vast infrastructure and historical significance, Pakistan Post faces major hurdles in competing with private couriers. Its reliance on outdated processes, lack of a robust tracking system, and slow adoption of digital payment solutions put it at a significant disadvantage. Bureaucratic inefficiencies and financial mismanagement further weaken its ability to implement necessary reforms. While proposals for modernization and rightsizing have been discussed, meaningful change requires strong leadership, investment in technology, and a customer-centric approach. Without swift and decisive action, Pakistan Post risks becoming obsolete in an increasingly digital and fast-moving courier industry.

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