Senate body calls for a sweeping overhaul of Pakistan Post

The Senate Standing Committee on Communications has called for a comprehensive overhaul of Pakistan Post, aiming at digitisation, financial restructuring, loss prevention, and commercialisation of its extensive property portfolio. A committee member suggested privatising the post office, arguing that the institution remains reliant on outdated procedures despite significant advancements in AI and modern technology.

Concerns were raised over Pakistan Post's performance, highlighting its inability to match the efficiency of private courier companies operating with smaller teams and online systems. The committee was informed that Pakistan Post boasts 9,946 post offices, 85 General Post Offices, 743 franchise offices, 53 Mail Offices, and six international mail exchange hubs, employing 21,213 regular staff and 4,500 riders who provide traditional mail, express mail, remittance, and agency services.

However, around 60 percent of its revenue stems from agency functions, and the decline in traditional revenue due to military pension disbursements and savings bank operations being transferred to commercial banks has posed challenges. The Director General of Pakistan Post cited a shortage of funds as the primary obstacle to introducing modern technology and automation, with vendors owing the department around Rs6.4 billion, hindering routine operations.

The committee recommended releasing the Rs1.36 billion allocated through the EXIM Bank of Korea for a 2,761-post-office automation project, aiming to expand its implementation. The committee also urged Pakistan Post to expand its digitisation efforts beyond internal operations, including developing e-commerce and logistics services, introducing online networking solutions, and leveraging its nationwide infrastructure to generate new revenue streams.