ISLAMABAD: A Senate committee on Monday showed concerns over the high expenditures and low earnings of Pakistan Post and directed the officials concerned to take necessary steps for raising its revenue.

The Senate Standing Committee on Communications held its meeting at the headquarters of Pakistan Post to review its financial situation, performance and operational efficiency. The agenda focused on the organisation’s profits and expenditures along with strategies for boosting revenue in the current fiscal year.

The meeting was told that Pakistan Post earned a profit of Rs9.2 billion in the previous fiscal year. However, the total expenditures for the same period stood at Rs27 billion, raising concerns about the organisation’s financial sustainability.

The committee was informed that courier services currently held a 4-5 per cent share in the growing e-commerce market. This pointed to the untapped potential for Pakistan Post to increase its market share through technological improvements and competitive services.

Total profit stood at Rs9.2bn against expenditures of Rs27bn in previous fiscal year, meeting told

Senator Jan Saifullah Khan pointed out that there was 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, said Director General (DG) 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 told that the Revenue Division had set a target of Rs12 million for the current year.

The guest houses of Pakistan Post, which were closed to the public after the Covid pandemic, have faced significant financial losses. Last year, the guest houses incurred a loss of Rs10 billion. Furthermore, no funds have been allocated for basic maintenance such as washing bed sheets.

Pakistan Post is currently lagging behind private courier services in terms of technology which has contributed to its challenges in the competitive market.

The acknowledged the need for technological upgrades to bridge this gap.

The committee emphasised the importance of reducing operational losses and urged the organisation to adopt technology-driven solutions to enhance efficiency.

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 underscored 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.

Published in Dawn, February 11th, 2025