Key Takeaways
- The Senate Standing Committee on Communications has proposed sweeping reforms for Pakistan Post.
- Reforms include digitisation, financial restructuring, and commercialisation of property.
- Committee members expressed concern over the postal service's outdated procedures and declining public confidence.
The Senate Standing Committee on Communications has called for a comprehensive overhaul of Pakistan Post, aiming to modernise the institution through digitisation, financial restructuring, and the commercialisation of its vast property portfolio.
During a meeting chaired by Pervaiz Rashid, Senator Talha Mahmood proposed the privatisation of Pakistan Post, citing the need to adapt to rapid technological advancements.
Senator Kamil Ali Agha also highlighted the need for modernisation, noting that private courier companies have achieved greater efficiency despite having smaller workforces and online systems.
Pakistan Post currently operates 9,946 post offices, 85 General Post Offices, 743 franchise offices, 53 Mail Offices, and six international mail exchange hubs, employing around 21,213 regular staff and 4,500 riders.
The committee was informed that 60 percent of Pakistan Post’s revenue is linked to agency functions, and the shift of military pension disbursements and savings bank operations to commercial banks has adversely affected its traditional revenue base.
Officials stated that the shortage of funds is a major obstacle in introducing modern technology and automation, with vendors having outstanding dues of around Rs6.4 billion.
The Director General of Pakistan Post informed the committee that the department spends around Rs19 billion annually on salaries and has sought government funding for technology and innovation, but the amounts released have been significantly lower than requested.
The 2,761-post-office automation project has been reactivated with Rs1.36 billion financing through the EXIM Bank of Korea under the Public Sector Development Programme (PSDP).
The committee recommended the release of the Rs1.36 billion allocation for the automation project and directed Pakistan Post to accelerate its implementation, initially covering selected post offices and subsequently expanding the initiative.
Committee members stressed the need for Pakistan Post to develop e-commerce and logistics services, introduce online networking solutions, and utilise its nationwide infrastructure to generate new revenue.
