Pakistan Post has approached Turkish airline, Emirates, and Lufthansa to start business with them to improve network coverage and better quality of service as well as to effectively compete with private couriers.
Official sources revealed that Pakistan Post has taken several steps to improve its performance and reduce the deficit—the department is currently facing.
Pakistan Post to Partner With Turkish Airline, Emirates & Lufthansa to Expand its Reach
In order to effectively compete with private couriers, following measures have been taken:- Pakistan Post floats tender for selection of airlines and presently Pakistan Post utilizes the services of PIA, Etihad airline and Saudi airline, as these airlines participated in the tendering process.
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In a fresh development, the department has approached the Turkish airline, Emirates, and Lufthansa to start a business with them to improve network coverage and better quality of service.
Pakistan Post Office Department (PPOD) has suffered over Rs 40 billion losses from 2013-14 to 2017-18, with a consistent increase in revenue and expenditure gap.
According to official documents the department revenue was Rs 9.7 billion against the expenditure of Rs15.7 billion i.e. deficit of Rs 6.588 billion in 2013-14. The department revenue stood at Rs 9.67 billion against the expenditure of Rs 16.004 billion i.e. deficit of Rs 6.33 billion during 2014-15.
The revenue remained at Rs 10.23 billion in 2015-16 compared to Rs 17.72 billion i.e. deficit of Rs 7.488 billion. During 2016-17, revenue of PPOD was Rs 11.22 billion against the expenditure of Rs 20.533 billion i.e. deficit of Rs 9.30 billion.
According to the documents, PPOD generated revenue of Rs 11.74 billion during 2017-18 against the expenditure of Rs 22.24 billion with a deficit of Rs 10.5 billion.
The Department is facing loss since the financial year 2009/10.
Reasons for the Increase in Expenditure/loss of Pakistan Post
Following are the main reasons for the increase in expenditure/loss.
- Increase the trend of expenditure on account of Pay, Allowance & pension of the employees due to annual increase by the Federal Government;
- Price hike in the rate of Utilities, Commodities & Services etc. altogether required by Postal Department;
- Decrease in the rate of Post Office Commission from Rs. 1, 50% to Rs. 0.50% on Saving Bank Schemes with effect from October2010 by the Finance Division, Islamabad which has slashed down the revenue of the Postal Department annually by Rs two billion.
- Nonincrease in Inland Postal Tariff since long; and
- Parallel Organizations also run the affairs, likewise TCS, OCS, Leopard and so on.