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ISLAMABAD: Pakistan Post has an opportunity to expand its role in the growing e-commerce market, where courier services currently hold only a 4-5% market share, according to industry experts. This was revealed during a meeting of the Senate Standing Committee on Communications, chaired by Senator Pervaiz Rashid on Monday.
The committee convened to review Pakistan Post’s financial performance, operational efficiency, and plans for boosting revenue in the current fiscal year. Pakistan Post reported a profit of Rs9.2 billion in the last fiscal year; however, total expenditures stood at Rs27 billion, raising concerns about financial sustainability.
Industry expert Safar Abdul Qadir highlighted the potential for Pakistan Post to increase its market share through technological improvements and competitive services. Senator Jan Saifullah Khan pointed out the lack of a biometric system to monitor employee attendance, which has resulted in operational inefficiencies across several offices.
The Director General (DG) of Pakistan Post informed the committee that salaries and allowances are the organization’s largest expense. Senator Talal Chaudhry recommended rightsizing the workforce to reduce costs and suggested implementing a comprehensive rightsizing plan.
The committee was briefed that the Revenue Division has set a target of Rs12 million for the current fiscal year. So far, Pakistan Post has collected Rs5.7 billion, achieving 92% of its previous year’s target. The Special Investment Facilitation Council (SIFC) will provide consultants to help develop a robust business plan for Pakistan Post.
Guest Houses Facing Financial Losses
Pakistan Post’s guest houses, which were closed to the public after the COVID-19 pandemic, have suffered significant losses, amounting to Rs10 billion in the last fiscal year. Basic maintenance, such as washing bed sheets, remains unfunded.
The DG Pakistan Post acknowledged that the organization is lagging behind private courier services in terms of technology, which has weakened its competitive position. The current number of regular employees at Pakistan Post is 22,388, with plans to increase this number to 22,938.
The Standing Committee emphasized the importance of adopting technology-driven solutions to reduce operational losses and enhance efficiency. Senator Talal Chaudhry urged rightsizing and modern revenue models to secure Pakistan Post’s future.
The committee also discussed the lack of a regulatory body for the courier services sector, which has left consumers without a proper channel to voice grievances or seek redress. Committee members recommended setting up a sector regulator to ensure accountability and improve service standards.
Due to FATF restrictions, Pakistan Post’s bank operations were shut down, and all General Post Offices (GPOs) now rely on funding from the Finance Division for operational needs.
The committee concluded that strategic reforms, technological upgrades, and strong regulatory mechanisms are essential for Pakistan Post’s long-term sustainability and its ability to contribute more effectively to the country’s growing e-commerce market.
