ISLAMABAD: Senate Standing Committee on Communication was informed on Monday that Pakistan Post earned a profit of Rs9.2 billion in last fiscal year while the total expenditure for the same period stood Rs27 billion.

Employees’ salaries, pensions and incentives were the main cause of the growing expenditures. Senator Pervaiz Rashid  chaired a  meeting of the Senate Standing Committee on Communications at the headquarters of Pakistan Post, Islamabad  to review Pakistan Post’s financial situation, performance, and operational efficiency. It was briefed that Pakistan Post earned a profit of 9.2 billion rupees in the previous fiscal year. However, the total expenditure for the same period stood at 27 billion rupees, raising concerns about the organization’s financial sustainability.   The Committee was apprised that courier services currently hold a 4-5% share in the growing e-commerce market, according to Safar Abdul Qadir, an industry expert.

This points to the untapped potential for Pakistan Post to increase its market share through technological improvements and competitive services.  Senator Jan Saifullah Khan pointed out  that there is currently no biometric system in place to monitor employee attendance. Furthermore, employees in several offices have been found to disregard work timings, leading to operational inefficiencies.   The largest expenditure for Pakistan Post is salaries and allowances, reported the Director General (DG) of Pakistan Post. Senator Talal Chaudhry suggested that the number of employees should be reduced to help meet operational costs, and a rightsizing plan should be implemented. The committee was also briefed that the Revenue Division has set a target of 12 million rupees for the current year. So far, Pakistan Post has collected 5.7 billion rupees in revenue, achieving 92% of its target for the previous fiscal year.

The Standing Committee has requested more details on the business plan at the next meeting. The DG mentioned that the Special Investment Facilitation Council (SIFC) will provide consultants to formulate a robust business plan for Pakistan Post.  It was further briefed that the guest houses of Pakistan Post, which were closed to the public after the COVID-19 pandemic, have faced significant financial losses. Last year, guest houses incurred a loss of 10 billion rupees. Furthermore, no funds have been allocated for basic maintenance, such as washing bed sheets.  The committee was further briefed that the Pakistan Post is currently lagging behind private courier services in terms of technology, which has contributed to its challenges in the competitive market. DG Pakistan Post acknowledged the need for technological upgrades to bridge this gap.  

It was briefed that the current number of regular employees at Pakistan Post stands at 22,388, with a proposed number of 22,938 for the future. The Standing Committee is awaiting detailed discussions on the business plan in the next meeting.   The Standing Committee on Communications emphasized the importance of reducing operational losses and urged Pakistan Post to adopt technology-driven solutions to enhance efficiency.  

Senator Talal Chaudhry recommended rightsizing Pakistan Post to reduce the employee count and ensure sustainable operations.   Chairman of the Committee recognized the historical value of the Pakistan Post system, inherited from the colonial era, but stressed that modern revenue models, especially leveraging technology, must be implemented to secure its future.   The committee also recommended setting up a regulator for the courier services sector, as no such body currently exists to address consumer grievances or regulate service standards.  The guest house operations, once an additional revenue stream, have become a financial burden, losing 10 billion rupees in the last fiscal year.  The committee was also briefed on the closure of Bank and GPO Operations Due to the FATF restrictions, Pakistan Post’s bank was closed. Additionally, all General Post Offices (GPOs) now rely on payments from the Finance Division for their operational needs.   Pakistan Post’s officials expressed concerns over the lack of a cohesive regulatory framework for the courier sector, noting that this gap often leaves citizens without a channel to voice complaints or seek redress.

The committee members have called for a thorough review of the sector’s regulatory mechanisms and accountability processes. The discussions at the meeting underscore the critical need for reform, strategic planning, and technological advancements to secure Pakistan Post’s future and increase its contribution to the country’s e-commerce market.