Pakistan Post alters its course, will now be a logistics and money transfer company

By Maryam Dodhy on
February 1, 2016
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Pakistan Post is reportedly revamping its whole business model and transforming itself into a logistics and mobile financial company. The proposal for this drastic change was made last week and it has now been approved by the Prime Minister of Pakistan.

In recent times, Pakistan Post had become almost obsolete thanks to better, efficient courier services like TCS, OCS, Leopard etc. Furthermore, smartphones, easily accessible Internet and mobile financial services have made Pakistan Post’s job almost unnecessary. Keeping that in mind, Pakistan Post designed an agenda to revamp their entire business model. The major points of action discussed in their proposal were as follows:

Launch of Mobile Money Transfer

Pakistan Post is hoping to provide Mobile Money Transfer facility, for the purpose of which investment has already been proposed for 3200 post offices and 9000 agents. This investment amount will cater to the hardware and software components, HR needs, marketing and connectivity.

For a perfect execution, Pakistan Post is relying on great partnerships. The private partners would help Pakistan Post by providing them with all the basic needs for mobile money transfer. For their share, Pakistan Post would be provided with an end-to-end solution that would maintain market standards and would be run by the partner.

If all goes well, Pakistan Post is hoping to generate Rs. 5 Billion in revenue within 2 years with a 20% market share.

Launch of Logistics Company

According to Pakistan Post the courier market is worth Rs. 30 Billion and with the rising e-commerce trend the courier business will also boom. In order to bank on the situation, Pakistan Post is partnering with some private sector firms to launch their own logistics firm. An investment of Rs. 800 Million is being made in the following areas:

  • GPS enabled trucking fleet
  • Warehouse
  • Distribution channels
  • Information technology
  • Brand recognition

Re-branding of Pakistan Post

Apart from setting themselves as a logistics and mobile financial company, Pakistan Post is also aiming to re-brand itself as a center of technology. All facilities and appearances will be upgraded along with the adoption of medium and long-term policies.

In order to carry out the aforementioned changes in the most transparent manner, the Public Procurement Regulatory Authority (PPRA) will be involved in all three projects. These new changes, if carried out effectively can really turn around things for Pakistan Post. With the new changes, they are hoping to double their revenue to Rs. 900 million per annum in 2 financial years, with a 15% growth rate in the coming 3 years.

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